TMI Blog2008 (3) TMI 755X X X X Extracts X X X X X X X X Extracts X X X X ..... four appellants before us. By the impugned judgment and order, the Appellate Tribunal for Foreign Exchange, partly allowed the appeals and modified an adjudication order dated 12.3.2001 passed by the Dy. Director, Directorate of Enforcement, Mumbai. By his order dated 12.3.2001 the Dy. Director, Directorate of Enforcement, Mumbai had found that the appellants had contravened the provisions of Sections 14 8 (1) of the Foreign Exchange Regulations Act 1973. On such finding, he had imposed the following penalties :- (a) On M/s. Telstar Travels (P) Ltd., Mumbai : ₹ 90,00,000 (Rupees Ninety Lakhs only) for contravention of Section 14 of FERA and a further amount of ₹ 85,00,000/- for contravention of Section 8(1) of FERA ; (b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llant in FERA 11 of 2008 Mr. Rajesh Desai who was the son of Mr. Arun M. Desai, the Managing Director of M/s. Telstar Travels Pvt. Ltd., entered into an agreement with a foreign travel agent by name M/s. Clyde Travel Ltd., of Glasgow. An account bearing A/c.No.10975 was opened in the name of the company registered in the British Virgin Islands Ltd., by name M/s. Bountiful Ltd., with Banque De Financement at Geneva, Switzerland. It was the case of the authorities that the company M/s. Bountiful Ltd., was however, only a company on paper and the Geneva account of this Company was being operated by a person by name Mr. Shirish Shah, who was a Chartered Accountant operating from London and the said Mr. Shirish Shah was operating the account o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r an agreement dated 1.8.1994, Telstar would inform Clyde about prospective passengers travelling from India to Overseas and back. In consideration of Telstar s recommending such passengers to Clyde, Telstar was only entitled to be paid commission of about 3% on a quarterly basis alongwith a statement of ticket issued by Clyde. Clyde would normally sent invoices directly to the Indian clients but having regard to the voluminous nature of the invoices, quite often Clyde or its associate Bountiful Ltd., would forward the invoices to Telstar with a request for their onward transmission to their Indian clients. 3. We have perused the entire record. We find that there is a concurrent findings of fact to the effect that the Geneva bank account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of M/s. Telstar and the residential premises of its Managing Director Shri Arun Desai in the course of a search under Section 37 of FERA. Indian currency of ₹ 7,46,000/- was also seized in the course of this search. The Appellate Tribunal has observed that amongst the documents seized, were the invoices of Bountiful Ltd., which contained directions of M/s. Telstar to credit the amount of bill to account no.10975 of M/s. Bountiful Ltd., of Geneva and documents which reveals that several air tickets were also billed in these Bountiful invoices and payments of these tickets have been directed to be credited to the aforesaid Geneva account. The Appellate Tribunal has also placed reliance upon an enquiry report dated 15.1.1997 given by an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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