TMI Blog2015 (4) TMI 1327X X X X Extracts X X X X X X X X Extracts X X X X ..... ter the communication dated 17/11/2014. Mr. Vaze, learned counsel for the Enforcement Directorate is not able to show any extension granted or any other communication thereafter freezing the account. Consequently, the communication dated 17/11/2014 is no longer valid in law and the same is quashed and set side. For the purpose of this petition we have not examined the larger issue viz. the scope of Section 37 of FEMA and its applicability even after the show cause notice has been issued by the Adjudicating Authority. We do not interfere with the show cause notice dated 18/12/2014. However, the Adjudicating Authority shall dispose of the show cause noticed dated 18/12/2014 as expeditiously as possible after following the principles of Nat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y records by mutation. On 30/1/2013, the petitioners by a Deed of Sale sold the suit property to one Mrs. Betty Ratos e Rodrigues. Thereafter the name of Mrs. Betty R. Rodrigues was entered in the survey records as the owner of the suit property. 4. On 17/11/2014 the Assistant Director by a communication addressed to the Bank of Baroda, in exercise of his powers under Section 37 of FEMA, directed the freezing of the petitioners Fixed Deposit with it. This was without any notice to the petitioners. 5. Thereafter on 18/12/2014, the impugned show cause notice was issued by the Adjudicating Authority. The impugned show cause notice called upon the petitioners to show cause why penalty under Section 13 (1) of FEMA and the amount of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as, learned counsel for the petitioners in support of the petition submits that the show cause notice is without jurisdiction. The suit property was non-agricultural property in respect of which the petitioners had submitted zoning certificate which clearly mentions that the suit property is non-agricultural property. Thus the bar for purchase of agricultural property in terms of Regulations, 2002, has no application. Thus the impugned order be quashed and set aside along with the communication dated 17/11/2014 freezing the petitioners fixed deposit account with the bank of Baroda. 9. As against the above, Mr. N. Vaze, learned counsel for the respondents states that the merits of the petitioners' contentions in respect of the impugne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ners to file a further reply and make appropriate submissions contesting the show cause notice dated 18/12/2014. We would not at this stage interfere with the impugned show cause notice dated 18/12/2014. 11. However, so far as the communication dated 17/11/2014 is concerned, Mr. Vaze, learned counsel for the respondents-Enforcement Directorate states that power of freezing the bank account has been exercised by Assistant Director under Section 37 (3) of FEMA. The above provision empowers the Assistant Director to exercise powers under the Income Act 1961. Thus the communication dated 17/11/2014 freezing the petitioners' fixed deposit account in Bank of Baroda is submitted to be in terms of Section 132 (3) of the Income Tax Act 1961. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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