Union of India Vs Rajeev Jhawar (Appellate Tribunal Under SAFEMA at New Delhi)
FEMA Violation in Singapore Property Purchase- Penalty Found Reasonable – No Case for Penalty Enhancement – Tribunal Upholds ₹1 Crore Fine in Jhawar FEMA Case
The Union of India filed an appeal challenging the order dated 29.09.2020 passed by the Special Director, Enforcement Directorate, Kolkata, whereby penalty of ₹1 crore each had been imposed on Shri Rajeev Jhawar & Shri Brij Kishore Jhawar for contravention of provisions of the Foreign Exchange Management Act, 1999. The alleged violations related to Sections 4, 6(3)(d), 6(d) & 6(e) of FEMA read with the relevant regulations governing acquisition of immovable property abroad & foreign exchange borrowing/lending.
The Enforcement Directorate alleged that Shri Brij Kishore Jhawar siphoned off funds from his company for personal use, wrongly declared himself as a Non-Resident Indian (NRI) in FY 2009-10 to avoid disclosure of overseas income, received 18 million Thai Baht (≈₹3.6 crore) as consultancy fees from Usha Siam Steel Ltd., & remitted ₹2.39 crore from his foreign accounts in 2007-08 without disclosure in Indian returns. It was further alleged that Shri Rajeev Jhawar acquired a residential property worth ₹100 crore in Singapore out of these siphoned funds.
