1999 (8) TMI 1025 - AT - FEMA

Summary

Issues: Penalty imposed for contravention of sections 9(1)(b) and 9(1)(d) of the Foreign Exchange Regulation Act, 1973.

Analysis:

The appeal was filed against an Adjudication Order imposing a penalty for contravention of sections 9(1)(b) and 9(1)(d) of the Foreign Exchange Regulation Act, 1973. The appellant received a total amount from her husband, a resident of the USA, and paid the same amount to various persons in India, leading to the alleged contraventions. The appellant's counsel sought a reduction in the penalty, acknowledging the contraventions but emphasizing the lack of personal gain and the appellant's financial difficulties post-retirement. The appellant had deposited Rs. 10,000 towards the penalty, requesting it to be considered as a pre-deposit. The respondent did not contest the contraventions but left the penalty amount to the discretion of the adjudicating authority or the Board.

The Chairman of the Appellate Tribunal noted the appellant's acceptance of the contraventions and her plea for substantial justice over legal technicalities. After considering the arguments, the Chairman found merit in reducing the penalty, acknowledging the appellant's cooperation and clean admission of the charges. Consequently, the penalty was reduced from Rs. 50,000 to Rs. 25,000. The appeal was partly allowed, upholding the contraventions but reducing the penalty amount. The appellant was granted thirty days to pay the reduced penalty, with the provision to adjust the already deposited Rs. 10,000 towards the pre-deposit. Failure to pay within the stipulated period would empower the respondent to recover the penalty through legal means.