FINAL ORDER

09.01.2025

This Order disposes of Appeal No. FPA-FE-82/DLI/2019 filed by M/s Onkar Travels Pvt. Ltd. against the Order No. Adj/FERA/ 01/DLZO/2015/DD(RBS) dated 30.03.2015 passed by Deputy Director, Enforcement Directorate, Delhi. Penalty of Rs. 50,000/- was imposed vide the Impugned Order on the Appellant for the contravention of Sections 8(1), 9(1)(b), 9(1)(d), 9(1)(f) and 14 of the Foreign Exchange Regulation Act, 1973 (“FERA”), read with Ministry of Finance Notification No. F-1/3/EC/73 dated 15.06.1977. The Penalty amount of Rs 50,000 has been deposited by the Appellant. At the first instance the Appellant filed an Appeal before the Special Director (Appeals), Delhi. However, in view of the observations of the Hon‟ble Supreme Court in the case of Union of India & Ors. vs. M/s Premier Ltd. & Ors., Civil Appeal No. 3529 of 2008, the Ld. Special Director (Appeals) dismissed the Appeal on 16.09.2019, with direction that the fresh Appeal may be filed before the Appellate Tribunal, if so desired.

2. On perusal of the record, it appears that the Respondent had conducted searches on 06.08.1985 at certain premises in Delhi. On 07.08.1985 further searches were conducted at the premises of the Appellant Company. On the basis of recovery and seizure of documents and statements tendered under the provisions of The Foreign Exchange Regulation Act, 1973 (FERA), a Show Cause Notice dated 13.11.1991 was issued by the Respondent. The Appellant Company has been charged in relation to four Foreign Exchange transactions which had occurred in 1980. These transactions were as follows:

 The Appellant Company, M/s Onkar Travels Pvt Ltd., which is not an authorised dealer, acquired foreign exchange amounting to US$ 13,740/- and BP£ 900/- from an Association of Persons comprising of Shri Didar Singh (deceased), Shri Nanak Singh, Shri Charan Singh, Shri Jagmohan Singh @ Jaggi and Shri Shri Madan Mohan Abbott, without the previous general or special permission of the Reserve Bank of India (RBI). Further, the Appellant Company M/s Onkar Travels Pvt. Ltd. failed to offer the said foreign exchange to an authorised dealer within three months of becoming the holder/owner thereof. The transactions allegedly occurred in contravention of Sections 8 (1) and 14 of FERA.

 The Appellant Company without the previous general or special permission of the RBI acquired foreign exchange of US $ 12,06,197/- and BP£ 80,000, and transferred it to the credit of the Association of Persons mentioned hereinabove and failed to offer the said foreign exchange to an authorised dealer within three months of becoming the holder/owner thereof. The transactions allegedly occurred in contravention of Sections 8 (1) and 14 of FERA.

 The Appellant Company without the previous general or special exemption of the RBI made payments in India of Rs. 1,35,150/- to the above-mentioned Association of Persons by order or on behalf of a person resident outside India, and in consideration or in association with the receipt of payments by person outside India. The transactions allegedly occurred in contravention of Sections 9 (1) (d) and 9 (1) (f) (i) of FERA.

 The Appellant Company without the previous general or special exemption of the RBI received payments totalling Rs. 1,16,97,254/- in India from the above-mentioned Association of Persons by order or on behalf of a person resident outside India, and in consideration or in association with the receipt of payments by person outside India. The transactions allegedly occurred in contravention of Sections 9 (1) (b) and 9 (1) (f) (i) of FERA.

3. Ld. Counsel for the Appellant argued that there was no recovery of any incriminating material during the course of search at the premises of the Appellant Company and its Directors Sh. Paramjit Singh and Sh. Kewal Singh. He stated that it was during the search of the residential premises of Shri K S Butalia, that certain documents were recovered and seized. These documents were written in different hands