Ravi Goenka Vs Directorate of Enforcement (Appellate Tribunal Under SAFEMA At New Delhi)
FEMA Requires Actual Transaction, Not Mere Attempt – No Contravention Without Transfer: Confiscation Denied as No Transfer Took Place – Attempt Not Punishable under FEMA- 20 Year Retained Seizure Ordered to Be Refunded –
Two separate appeals were filed by Shri Ravi Goenka & Shri Vasudev Goenka against the order of the Special Director, Directorate of Enforcement, who had imposed a penalty of ₹25 lakh each for alleged contravention of Section 3(d) of the Foreign Exchange Management Act, 1999 (FEMA).
The Union of India, on the other hand , filed a cross-appeal seeking confiscation of ₹89.70 lakh seized during search operations at the appellants’ premises.
The Directorate alleged that the appellants had kept the said Indian currency ready for delivery to certain persons acting under instructions from one Anil based in Dubai, thereby constituting a financial transaction in violation of Section 3(d) of FEMA. However, the Special Director found that the transaction had not actually taken place.
Under the repealed FERA, even an attempt was punishable, but FEMA contains no such provision. Since the money had been seized before any transfer occurred, the authority concluded that no contravention under Section 3(d) was made out & therefore refused confiscation though it still levied penalties.
