2024 (3) TMI 19 - SCH - FEMA

Adjudication made under FEMA Act - Non issuance of show cause notice as well as non giving of an opportunity of being heard within the meaning of Section 16 of the Act r/w Rule 4(1) and 4(3) of the Rules certainly would amount to violation of principles of natural justice - as decided by HC 2023 (12) TMI 914 - MADRAS HIGH COURT notice as contemplated under the Act as well as the Rules as discussed herein above have been served on these noticees and Merely because at the time of serving the notice, these noticees were not available at the address at Bengaluru would not ipso facto entile them to claim immunity that the notices served on them at the Bengaluru address cannot be construed as a notice within the meaning of Section 16 r/w Rule 4(1) and Rule 14(b) or (c) of the Rules. HELD THAT - We are not inclined to interfere with the impugned judgment, but observe that the petitioners have a right to file an appeal under Section 19 of the Foreign Exchange Management Act, 1999. However, we clarify that the observations and findings recorded in the impugned judgment are tentative and prima facie.The appellate tribunal will be entitled to go into all issues and contentions in accordance with law. Recording the aforesaid, the special leave petitions are dismissed.Pending application(s), if any, shall stand disposed of.

Summary

The Supreme Court dismissed the special leave petitions, stating that the petitioners have the right to file an appeal under Section 19 of the Foreign Exchange Management Act, 1999. The observations in the impugned judgment are tentative, and the appellate tribunal can review all issues. Any pending applications are disposed of.