2013 (10) TMI 1584 - AT - FEMA

Summary

Issues:
Stay of Impugned Order & waiver of pre-deposit of penalty amount under FERA, 1973 & ECM, 1987.

Analysis:
The judgment by the Appellate Tribunal for Foreign Exchange, New Delhi involved the applicants/appellants seeking a stay of the Impugned Order and waiver of pre-deposit of a penalty amount imposed for contraventions of FERA, 1973, and ECM, 1987. The applicants were a foreign bank merged with another bank, and retired officers of the bank. The applicants argued for dispensation of the penalty amount, citing no breach of FERA guidelines and financial inability to pay the penalty. They emphasized a good case on merits and balance of convenience in their favor. The applicants relied on various judgments to support their contention.

On the other hand, the respondent contended that the applicants focused on merits while admitting contraventions of FEMA. The respondent argued against waiver of pre-deposit, emphasizing the need to establish undue hardship as a condition precedent. The respondent cited a judgment by the Supreme Court to support their argument.

After hearing arguments, the Tribunal discussed the legal position regarding undue hardship and safeguarding penalty realization as per relevant judgments. The Tribunal granted dispensation of pre-deposit of the penalty amount to the applicants/appellants, subject to specific payment percentages within a specified timeframe. The Tribunal directed compliance with the order within 30 days, failing which the Appeals would be dismissed for non-compliance. The next hearing was scheduled for compliance reporting and further proceedings, with no costs imposed.

In conclusion, the judgment addressed the issues of stay of the Impugned Order and waiver of pre-deposit of the penalty amount under FERA, 1973, and ECM, 1987. The Tribunal granted dispensation of pre-deposit with specific payment conditions, emphasizing compliance within the given timeframe to avoid dismissal of the Appeals. The judgment provided a detailed analysis of the arguments presented by both parties and applied relevant legal principles to reach a decision on the matter.