FINAL ORDER

16.07.2024 Dictated by Rajesh Malhotra Present appeal u/s 19(1) of the Foreign Exchange Management Act, 1999 and Sub-Rule 1 of Rule 10 of Foreign Exchange Management (Adjudicating Proceedings and Appeal) Rules, 2000 is filed by the appellant, Union of India against the impugned order dated 18.03.2021 passed by the Adjudicating Authority, vide which penalty of Rs. 2 lakh each was imposed on respondent no. 1 & 2 respectively for contravention of section 7(3) of the Foreign Exchange Management Act, 1999, r.w. Regulation 9 of Foreign Exchange Management (Export of Goods and Services) Regulation, 2000, for delay in realization of the export proceeds to the extent of US$ 9,93,652 (equivalent to INR 6,08,85,128/-).

2. As per the facts of the case, information was received that out of the 21 foreign remittances, the export obligations were not completed within the prescribed period of financial year, as detailed at page 5 of the impugned order. During investigation, it is revealed that out of 21 remittances reported by RBI vide letter dated 23.07.2019, 2 remittances are duplicate entries which are closed and remaining remittances were not utilized and in the following 2 cases, th