9911796707
TMI Blog2024 (9) TMI 1036X X X X Extracts X X X X X X X X Extracts X X X X ..... f the respondent/RBI thereby selling the properties an Indian Citizen, the petitioner has been levied an exorbitant penalty without any basis. HELD THAT:- It appears that the computation method has not been shared with the petitioner as such, however the gist of the same is exemplified in the impugned order dated 19.08.2024. The bottom line is that the computation has been done in accordance with the prescribed Master Directions. There is nothing pointed out by learned counsel for the petitioner so as to challenge the manner in which the computation has been done. As a matter of fact, considering the cash component of the sale consideration in contravention of the provisions of FEMA,1999, unhesitatingly the petitioner has been dealt with qu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , suffice to state that the petitioner is a citizen of United States of America and Overseas Citizen of India [ OCI ] Cardholder, and evidently, he purchased vast tracks of agricultural property located in Dindigul District, Tamil Nadu, without obtaining prior permission from the RBI, as required under Regulation 8 of the Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations, 2000. 6. It is stated that the petitioner was unaware of such compliances, and therefore, the respondent/RBI vide letter dated 24.01.2023 inter-alia directed him to transfer the acquired property immediately to a person resident in India, who should be a citizen of India and eligible under FEMA 1999 [Foreign Exchange Manageme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... years: 0.55% 2-3 years: 0.60% 3-4 years: 0.65% 4-5 years: 0.70% 5 years: 0.75% 10. It is further pointed out that the aforesaid computation is subject to Part-II of Clause 7.4, which provides that that the amount imposed should not exceed 300% of the amount of contravention. It is further submitted that the based on the aforesaid Master Directions, the penalty computation has been done as under:- 3. Penalty Computation: i. Penalty computation was done in this case, in terms of Section 13 (1) of FEMA, 1999 and Para 7.4 of Master Direction No. 4/2015-16 dated January 1, 2016, on Compounding of Contravention under FEMA, 1999. ii. Period of contravention was considered from date of purchase till the date of sale of the property. It came out as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etitioner was Rs. 41,04,675/- only. Thus, the penalty imposed on the petitioner was much less than the original penalty calculated in the case. vii. As provided in Rule 8(2) of Foreign Exchange (Compounding Proceedings) Rules, the petitioner was granted an opportunity of being heard before deciding on the compounding application, vide RBI email dated August 13, 2024. The entity has conveyed via email dated August 14, 2024, its decision to not opt for any personal hearing. The application was, therefore, considered based on the averments made in the application and the documents submitted therewith. 11. The aforesaid Master Direction as well as the Guidance Note have been shared with the learned counsel for the petitioner during the course o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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