Undervalued Imports via Hawala Attract FEMA, Not Exorbitant Fines

P. Rosu Reddy Vs Directorate of Enforcement (Appellate Tribunal Under SAFEMA Delhi) Hawala Import Payments Attract FEMA, But Penalty Must Be Proportionate: SAFEMA Tribunal Slashes ₹23 Cr to ₹7 Cr & Quashes Cash Confiscation The Appellate Tribunal for SAFEMA, New Delhi in Shri P. Rosu Reddy vs. Directorate of Enforcement, Chennai (FPA-FE-17/CHN/2022, final order dated 10-12-2025) partly allowed the appeal by substantially reducing FEMA penalties and setting aside confiscation of seized cash, while upholding the contraventions on merits. The Assessee was found to have imported used phot...