9911796707
TMI Blog2024 (7) TMI 1118X X X X Extracts X X X X X X X X Extracts X X X X ..... ount, in terms of Section 42(3) of the Foreign Exchange Regulation Act, 1973 and in terms of Rule 8(i) of the Foreign Exchange Management (Encashment of Draft, Cheque, Instrument and Payment of Interest), Rules, 2000 and in the light of the order dated 19.10.2016 passed by the Appellate Tribunal for Foreign Exchange in Appeal No.397/2003, by considering the petitioner's representation dated 10.07.2018. 2. The petitioner was aged about 65 years at the time of filing of this Writ Petition. A sum of Rs. 9,00,000/- in cash was recovered from the petitioner on 02.07.1997 pursuant to the search conducted under Section 37 of the Foreign Exchange Regulation Act, 1973 by Enforcement Directorate, Madurai. Pursuant to the aforesaid search, a noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ge Management (Encashment of Draft, Cheque, Instrument and Payment of Interest), Rules, 2000. It is submitted that as per Sub-Rule (i) to Rule 8 of the Rules, after completion of investigation, if it is found that there is no contravention, currency is to be returned together with interest at the rate of 6% per annum from the date of seizure till the date of payment. 7. It is submitted that as per Sub-Rule (ii) to Rule 8 of the Rules, during the course of adjudication, if it is found that the seized Indian currency is not relevant for such adjudication, the Adjudication Authority may pass order for return of such Indian currency together with interest at the rate of 6% per annum to such person. 8. The learned counsel for the petitioner wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te right of the petitioner to receive interest on the amount that were lying with the Department. It is submitted that if the amount was not seized, it would have atleast earned some interest from the Bank under Fixed Deposit or in the alternative, it would have been used to purchase property to enhance savings in the business. It is therefore submitted that the petitioner is entitled for interest at bank rates that prevailed during the period or alteast 6% per annum as is recognized under Rule 8(i) of the Foreign Exchange Management (Encashment of Draft, Cheque, Instrument and Payment of Interest), Rules, 2000. 10. The learned counsel for the petitioner has placed reliance on the decision of the Bombay High Court in M/s.R.K.Jewellers and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earlier date as the Court thinks fit : Provided that where the liability in relation to the sum so adjudged had arisen out of a commercial transaction, the rate of such further interest may exceed six per cent, per annum, but shall not exceed the contractual rate of interest or where there is no contractual rate, the rate at which moneys are lent or advanced by nationalised banks in relation to commercial transactions. Explanation I:- In this sub-section, "nationalised bank" means a corresponding new bank as defined in the Banking Companies (Acquisition and Transfer of Undertakings) Act 1970 (5 of 1970). Explanation II:-For the purposes of this section, a transaction is a commercial transaction, if it is connected with the industry, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
