FINAL ORDER

13.08.2024

FPA-FE-95-97/CHN/2005, FA-FE-415-417,484-485&487/CHN/2004

A batch of appeals have been filed under Section 17 of the Foreign Exchange Management Act, 1999 (in short ‘the Act of 1999) against the order dated 05.03.2004 passed by the Special Director, Directorate of Enforcement, Chennai. By the order under challenge, the following penalties have been imposed on the appellants for contravention of Section 8(1), 8(3), 8(4) read with Section 64(2) of the Foreign Exchange Regulations Act, 1973 (in short `the Act of 1973’):

(i) Penalty of Rs.10,00,00,000/- (Rupees Ten Crores only) on M/s ORJ Electronic Oxides Ltd.

(ii) Penalty of Rs.1,00,00,000/- (Rupees One Crore only) on Shri ORJ Jaffer Batcha.

(iii) Penalty of Rs.1,00,00,000/- (Rupees One Crore only) on Shri V. Sundaram.

(iv) Penalty of Rs.20,00,00,000/- (Rupees Twenty Crores only) on Shri N.M. Parthasarthy.

(v) Penalty of Rs.10,00,000/- (Rupees Ten lakh only) on M/s Sundaram Finance Ltd.

(vi) Penalty of Rs.1,00,000/- (Rupees One lakh only) on Shri K.M. Shankar.

(vii) Penalty of Rs.1,00,000/- (Rupees One lakh only) on Shri S. Srinivasan.

2. So far as M/s ETKIF America Inc and M/s ETK Exports Consultants are concerned, they