FINAL ORDER

04.12.2024 These appeals have been filed under section 19 of Foreign Exchange Management Act, 1999 to challenge the order dated 29.11.2008 passed by the Special Director of Enforcement, New Delhi. The penalty of Rs. 80 lakhs has been imposed on each of appellants Manoj Kumar and Ashok Kumar.

2. A challenge to the order has been made mainly on the factual grounds. It is alleged that the appellants have contravened section 8(1) and 8(2) of FERA, 1973 and thus were liable for the action under section 50 of the FERA, 1973. The appellants were having US $ 3910, Pound 3185, Canadian Dollar 6175, UAE Dirhan 1000, Australian Dollar 1000, D.M. 750, Guilder 3185 & IMO for US Dollar 251 at the time of search.

3. They were found selling foreign exchange equivalent to Rs. 80 lakhs out of the foreign exchange without the previous general or special permission of Reserve Bank of India.

4. The learned counsel for the appellant submitted that recovery of the currency was not from the appellant’s residence, rather it was from the residence of his sister. Yet, they were made liable to account for the foreign currency to show special or general permission of RBI to sell and purchase foreign c