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2010 (12) TMI 1050 - HC - Companies LawPenalty - NRE account - deposits were made by the persons other than the account holder, a show-cause notice was issued by the Directorate of Enforcement to the appellant – Held that:- deposits in foreign currency made by mandatee or any person other than account holder, in NRE account, prior to 31-7-1995 would not amount to infringement of provisions of sections 6(4), 6(5), 73(3), 49 and 9(1)(e), read with section 29B.8(c) of Exchange Control Manual, 1987. - prior to 31-7-1995, there had been no requirement clearly pointing out that deposits in NRI accounts could not be made by a person other than the NRI account holder themselves. Show-cause notice was issued after more than 8 years. Bank was not obliged to maintain record beyond 8 years in view of The Banking Companies (Period of Preservation of Records) Rules, 1985, notified on 29-3-1985, wherein maximum period of maintenance of records of all kinds of registers etc. has been stipulated as 8 years. In view of issuance of show-cause notice after about nine years, appellant had been prejudiced
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