9911796707
TMI Blog2011 (3) TMI 1284X X X X Extracts X X X X X X X X Extracts X X X X ..... release of the seized foreign currency. It is relevant to state that possession of the foreign currency of US $ 20,000 by the appellant was admittedly illegal; he had not traced his possession of the foreign currency to any legitimate source of acquisition - no legal infirmity in the impugned order passed by the Appellate Tribunal to warrant interference - Appeal is dismissed - 4546 of 2004(FEMA), - - - Dated:- 17-3-2011 - N.K. Patil and H.G. Ramesh, JJ. S/Shri V.V. Gunjal, Advocate for P.V. Gunjal and V.S. Gunjal, for the Appellant. Shri Urval N. Ramanand, C.G.S.C., for the Respondent. [Judgment per : H.G. Ramesh, J.]. This appeal filed under Section 35 of the Foreign Exchange Management Act, 1999 ( the Act for short ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontrary to law and accordingly by the order impugned herein has set aside the order of the Deputy Director insofar as it related to release of the foreign currency by ordering confiscation of the seized currency of US $ 20,000 after adjustment of the penalty of Rs. 50,000/- imposed by the Deputy Director, Being aggrieved by the said order of the Appellate Tribunal, the appellant has filed this appeal. 3. We have heard the learned counsel appearing for the parties, perused the order of the Appellate Tribunal dated 16-2-2004 and also the order of the Deputy Director dated 29-1-2003; copies of the order of the Deputy Director were made available to us by the learned Counsel for the appellant at the time of hearing. 4. The fact that the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reserve Bank, he shall, upon adjudication, be liable to a penalty up to thrice the sum involved in such contravention where such amount is quantifiable, or up to two lakh rupees where the amount is not quantifiable, and where such contravention is a continuing one, further penalty which may extend to five thousand rupees for every day after the first day during which the contravention continues. (2) Any Adjudicating Authority adjudging any contravention under sub-section (1), may, if he thinks fit in addition to any penalty which he may impose for such contravention direct that any currency, security or any other money or property in respect of which the contravention has taken place shall be confiscated to the Central Government and fur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in respect of which the contravention has taken place. In that view of the matter, the contention of the learned Counsel for the appellant is rejected. We may state that the contention of the learned Counsel is totally opposed to the plain language of Section 13 of the Act. 9. In our opinion, the Appellate Tribunal was right in law in interfering with the order of the Deputy Director. On the facts of the case, the Deputy Director was not right in exercising his discretion in ordering release of the seized foreign currency. It is relevant to state that possession of the foreign currency of US $ 20,000 by the appellant was admittedly illegal; he had not traced his possession of the foreign currency to any legitimate source of acquisition. W ..... X X X X Extracts X X X X X X X X Extracts X X X X
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