APPELLATE TRIBUNAL UNDER SAFEMA AT NEW DELHI

1. FPA-FE-20/JL/2014 Shri Som Nath Sikka … Appellant

2. FPA-FE-21/JL/2014 Shri Ramesh Kumar … Appellant Versus The Joint Director Directorate of Enforcement, Jalandhar … Respondent Advocates/Authorized Representatives who appeared For the Appellants : Mr. Naveen Malhotra, Adv.

Mr. Ritvik Malhotra, Adv.

For the Respondent : Mr. Varun Mishra, Adv.

CORAM SHRI G. C. MISHRA : MEMBER SHRI BALESH KUMAR : MEMBER

FINAL ORDER

09.01.2025 This Order disposes of the Review Applications dated 02/12/2015 filed by the Appellants Shri Som Nath Sikka in Appeal No. FPA-FE- 20/JL/2014 and Shri Ramesh Kumar in Appeal No. FPA-FE-

21/JL/2014.

2. On perusal of the record it is revealed that the Joint Director of the Enforcement Directorate, Jalandhar vide Order No.JD/JL/1/2014/GB dated 27.03.2014 imposed penalty of Rs.34,00,000/- on each of the two Appellants herein viz Shri Som Nath Sikka and Shri Ramesh Kumar under Section 50 of the Foreign Exchange Regulation Act, 1973 (FERA) for contravention of the provisions of Sections 9(1) (b) and 9 (1) (d) of FERA. The Ld. Adjudicating Authority further ordered that the amount of Rs.60,000/-, seized from the residence of Shri Ramesh Kumar on 11.10.1995 lying with the department along with the interest accrued thereon amounting to Rs.2,39,286/- as on 27.03.2014 be adjusted towards penalty and the balance amount of the penalty Rs.31,60,714/- imposed on Shri Ramesh Kumar shall be deposited with the department.

3. The two Appellants herein viz Shri Som Nath Sikka and Shri Ramesh Kumar, filed the aforementioned two Appeals in this Tribunal in May, 2014. The two Appellants also filed the Applications for wavier of the pre-deposit of the penalty imposed on them. This Tribunal vide Order dated 23.07.2015 disposed of the Applications with the directions that the recovery of the penalty imposed against the Appellants shall remain stayed during the pendency of the Appeals, provided they deposit 15 percent of the amount of penalties imposed against each of them separately and furnish a reliable security for the balance 85% within 30 days from the date of communication of this Order.

4. The Hon’ble Punjab & Haryana High Court in CWP No.20551 of 2015 filed by the Appellant Shri Ramesh Kumar, ordered on 15.10.2015 that the Order dated 23.07.2015 of this Tribunal is reasonable and justified. The Hon’ble High Court did not find any merit in the said Writ Petition. However, in the interest of justice, the Hon’ble High Court extended the time to deposit the amount as directed by the Tribunal up to 16.11.2015. The Hon’ble High Court of Punjab & Haryana in CWP No.21024 of 2014 filed by the Appellant Shri Som Nath Sikka, had passed on 05.10.2015, an order on the same lines as mentioned afore in the Writ Petition filed by Shri Ramesh Kumar.

5. Ld. Counsel for the Appellants informed during the course of hearing on 18.12.2024, that they had moved the Hon’ble Supreme Court against the Orders of the Hon’ble High Court of Punjab & Haryana, however, without any success.

6. Review Applications were filed by the two Appellants on 02.12.2015. Ld. Counsel for the Appellants stated that no Prosecution Complaint was filed under FERA against Shri Ramesh Kumar as the department itself suggested that there was no corroborative evidence against him. Ld. Counsel argued that under such circumstances even making pre-deposit would have caused hardship to the Appellant. He therefore prayed that the Order dated 23.07.2015 of this Tribunal may be reviewed and the amount of Rs.2,39,286/- which was ordered to be released by the Ld. Adjudicating Authority be appropriated towards pre- deposit and the Appeal be heard on merit. Ld. Counsel for the Appellants further argued that while for the Review Petitioner Shri Som Nath Sikka Prosecution Complaint under FERA was filed, the Trial Court had acquitted him. Ld. Adjudicating Authority failed to appreciate the Order of the Trial Court. Compliance to the Order dated 23.07.2015