Case Law Details
Harish Forex Services Pvt. Limited Vs Assistant Director Of Enforcement (Rajasthan High Court)
Rajasthan High Court Directs Enforcement Directorate to Release Seized Assets in Harish Forex Services Case
Introduction: The Rajasthan High Court recently delivered a judgment in the case of Harish Forex Services Pvt. Limited versus the Assistant Director of Enforcement, addressing the validity of the seizure and seeking the release of confiscated assets. The court’s decision emphasizes the importance of timely action by authorities in accordance with relevant provisions.
Background: The petition challenged the seizure and confiscation carried out by the Directorate of Enforcement based on a search conducted on March 14, 2019, at the business and residential premises of the petitioners. The seized assets included Indian and Foreign Currency, considered as stock-in-trade for the petitioners’ foreign exchange business.
Legal Arguments: The petitioners contended that the Directorate of Enforcement, empowered by Section 37 of the Foreign Exchange Management Act, 1999 (FEMA), conducted the search under provisions analogous to the Income Tax Act, 1961. The petitioners focused their submissions on the failure of the authorities to release the seized currency within the stipulated time frames as per Section 132B of the Income Tax Act, 1961.
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