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TMI Blog2021 (12) TMI 132X X X X Extracts X X X X X X X X Extracts X X X X ..... of the impugned notice the complaint and in support of the reasons on which they have been constructed. As these Writ Petitions being devoid of merits, are liable to be dismissed and accordingly, they are, all contentions having been kept open. Petitioners are granted a period of four weeks for submitting their reply to the subject notice; discretion lies with the answering respondents to grant some more time as well if a case is made out therefore; it is also open to the petitioners to seek reasonable clarifications from the quarters concerned, if need be. The observations herein above made being confined to disposal of these Writ Petitions, shall not shade the reply to be submitted by the petitioners and influence the formati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hereto. A plethora of rulings is pressed into service by their counsel in support of his submissions. 4. After service of notice, the respondents having entered appearance through the Central Govt. Counsel vehemently oppose the petitions making submission in justification of the impugned notice the complaint and in support of the reasons on which they have been constructed. A decision of a Co-ordinate Bench, affirmed by the Division Bench and later by the Apex Court in SLP is banked upon to substantiate their resistance. 5. Having heard the learned counsel for the parties and having perused the petition papers, this Court declines to grant indulgence in the matter for the following reasons: (a) Learned Sr. Advocate Mr. K.G. Ragh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DIRECTOR, ENFORCEMENT DIRECTORATE, paragraphs 27 39. (iv) Mr. S.N. SINHA vs. STATE OF KARNATAKA, ILR 2012 KAR 448, para 4 (v) S.N. BANGUR vs. M/S. KLEN MARSHALLS MFRS. EXPORTS PVT. LTD., (2002) 3 CTC 342 (Mad) paras 16 17 The principles laid down in the above decisions can be summarized thus: that any proceedings taken against a person without adequate notice to him infringe norms of natural justice and therefore are invalid; notice does not mean just any kind of notice, but an adequate notice as regards the details of the case which the noticee is asked to meet; a proper notice should indicate the time place of hearing and specific allegations which the noticee is required to defend himself against; notice should ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 'standing' of the noticee is also one of the relevant factors in adjudging such adequacy; petitioners are not peasants; they are highly educated; it is not their case that they lack exposure to the outer world, transactions of mammoth value with the foreign companies having been done by the noticee company i.e., M/s. Devas Multimedia Pvt. Ltd.; there is enough material on record to gather an impression that they were associated with the business of said company; the very Foreign Direct Investment itself is quantified at ₹ 579 CRORE of which ₹ 175.87 CRORE (as mentioned in para 2 of the impugned complaint) is allegedly FEMA-tainted. (d) It is not that a bare notice of the kind has fallen on the petitioners as a bolt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gn exchange that is tainted because of alleged violation inter alia of sections 3(b), 5, 6(2)(a) 10(6) of FEMA r/w. Regulations 3 4(a) of the Foreign Exchange Management (Permissible Capital Account Transactions) Regulation 2000; it also mentions of section 42(1) but does not much say about section 42(2), is true; that per se makes no difference to the otherwise validity of impugned notice the complaint; to an utter stranger, the language text of the notice may not make much sense, is arguable; but petitioners do not claim to be such strangers; they have already participated in the cognate PMLA proceedings and their statements too have been recorded; the complaint made u/s. 16(3) of the FEMA that accompanied the notice itself runs i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as rightly contended by learned ASG. In the above circumstances, these Writ Petitions being devoid of merits, are liable to be dismissed and accordingly, they are, all contentions having been kept open. Petitioners are granted a period of four weeks for submitting their reply to the subject notice; discretion lies with the answering respondents to grant some more time as well if a case is made out therefor; it is also open to the petitioners to seek reasonable clarifications from the quarters concerned, if need be. The observations herein above made being confined to disposal of these Writ Petitions, shall not shade the reply to be submitted by the petitioners and influence the formation of the opinion by the answering respondents ..... X X X X Extracts X X X X X X X X Extracts X X X X
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