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Challenge to order of Appellate Tribunal for Foreign Exchange regarding waiver of penalty deposit. Analysis: The petitioner, Aadik Exports, challenged the order of the Appellate Tribunal for Foreign Exchange dated 2-7-2008, which required the petitioner to deposit 50% of the penalty amount of Rs. 3,00,000 within thirty days. The petitioner had supplied garments to a buyer in Finland in 1992, but the consignment was not accepted due to alleged defects. The consignment remained in a bonded warehouse in Finland, and efforts to locate a new buyer were unsuccessful. The petitioner eventually wrote off the outstanding export proceeds. While the Reserve Bank of India approved the waiver/write off for one consignment, no such approval was granted for the other consignment. The petitioner was penalized under the Foreign Exchange Regulation Act, 1973, and was directed to deposit Rs. 1,50,000 by the Appellate Tribunal. An interim order stayed the deposit requirement pending further proceedings. The petitioner argued that both consignments were exported to the same buyer, and the circumstances were similar for both. The petitioner contended that the legal expenses involved in pursuing the matter further outweighed the marginal value of the consignments, leading to the decision to write off the outstanding amount. The petitioner expressed willingness to provide security for the balance penalty amount to the Enforcement Directorate. Considering the facts presented, the court modified the order of the Appellate Tribunal, directing the petitioner to deposit Rs. 75,000 towards the penalty amount and provide security of Rs. 2,25,000 to the Enforcement Directorate. The petitioner was also required to submit an affidavit disclosing personal assets and those of family members within four weeks. The writ petition was disposed of accordingly, with the petitioner complying with the modified directives.
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