FINAL ORDER

20.05.2025

Dictated By: Rajesh Malhotra

The present appeals are filed by the appellants under Section 19 of the Foreign Exchange Management Act, 1999 against Order No. ADJ/01/FEMA/DZ/2017/JD(SM) dated 30.03.2017 passed by the Adjudicating Authority, whereby penalty of Rs.60,000/- and Rs. 2.00 lakhs was imposed on appellants respectively.

2. As per the facts of the case, on 21.05.2007, the officers of Income Tax Department (AIU), New Delhi searched the baggage of Captain G.A. OJEDOKUN at Departure Terminal of IGI Airport, New Delhi, under Section 132 of Income Tax Act, 1961, which resulted in recovery of US $ 22,34,826 and out of the which amount US $ 22,27,800 was seized under panchnama dated 21.05.2007, as per following details.

Captain G.A. OJEDOKUN in his statement dated 21.05.2007 and 06.04.2007 under Section 131 of Income Tax Act, 1961, at the office of DDIT (Inv), Air Intelligence Unit, Terminal-II, Departure Lounge by the officers of Income Tax Department, stated: -

(i) Since February, 2007 he has been working in Nigerian High Commission at New Delhi and getting salary US $ 7,000 per month approximately;

(ii) He was carrying approximately 1.5 million US dollar in his suitcase while going to Nigeria;

(iii) He has not taken any permission from Reserve Bank of India to carry the foreign currency from India;

(iv) The Indian currency was withdrawn in installments from the account of Embassy at Bank of Tokyo, Parliament Street, New Delhi and the money was converted/purchased from local market @ Rs.42 per dollar;

(v) The cash Indian currency was withdrawn from Defence Section Bank Account No. 11790 maintained with Bank of Tokyo, Mitsubshi UFJ Ltd., Parliament Street Branch, New Delhi from 25.04.2007 and the same money was converted into US dollars in cash in open market

(vi) He had joined recently in India, therefore, at that time he was not aware about the rules regulations of RBI as regard to conversion of rupees into foreign currency.

On the receipt of information from the Income Tax Department, New Delhi, the officers of Directorate of Enforcement recorded the statement of said Captain G.A. OJEDOKUN under Section 37 of FEMA, 1999 on the same day and on 06.07.2007 wherein he stated inter-alia as under: -

(i) He was a Nigerian National and holding Diplomatic Passport No. D-0003537 issued at Nigeria on 15.11.2006;

(ii) He came to India on 23.04.2007 and joined Nigerian High Commission at Delhi as Defence Advisor to Government of Nigeria

(iii) On 21.05.2007 the officers of Income Tax Department, searched his baggage at Departure Lounge at IGI Airport, New Delhi and seized foreign currency which was purchased by him @ Rs.42 per dollar from local market on different dates in the month of May 2007 at black market rates

(iv) The entire amount of US $ 22,34,826 were purchased in instalments from local market which was recovered and seized on 21.05.2007

(v) Shri Lawrence, M.A. Finance of Nigerian High Commission at Delhi was also aware about the purchase of US dollars in black market;

Captain G.A. OJEDOKUN could not furnish complete details and particulars of the person(s) of New Delhi from whom he had allegedly purchased foreign currency. On 29.06.2007, a reference was made to Chief of Protocol, Protocol Division, Ministry of External Affairs, New Delhi for questioning Captain G.A. OJEDOKUN, Defence Advisor to Nigerian High Commission in India and in reply thereto under a note No. 148/2007 dated 02.07.2007, the Nigerian High Commission submitted as under:

(i) Captain G.A. OJEDOKUN was the head of the Defence Section at Nigerian High Commission and having full authority to make withdrawals of any amount from the Defence Section Account with Bank of Tokyo, New Delhi, without any reference to anybody;

(ii) Captain G.A. OJEDOKUN and the warrant officer Sh. Lawrence A Odelade were the two authorized signatories to the Defence Section Account in the said bank;

(iii) The Nigerian Government did not ask Captain G.A. OJEDOKUN to make any withdrawal