Joginder Singh Vs Joint Director (Appellate Tribunal Under SAFEMA Delhi)
Caught in Another’s Scheme? – FEMA Export Default Admitted, SAFEMA Tribunal Reduces FEMA Penalty on Equitable Grounds
The Appellate Tribunal under SAFEMA, New Delhi, vide final order dated 24.12.2025, partly allowed the appeal filed by Shri Joginder Singh, proprietor of M/s Vasu Enterprises, against Order No. ADJ/03/FEMA/DZ/2015/JD(AR) dated 31.03.2015 passed by the Joint Director, Directorate of Enforcement, Delhi, imposing a penalty of ₹25 lakh for contravention of Regulation 16(1)(i) of the FEMA (Export of Goods and Services) Regulations, 2000.
The Tribunal noted that the Appellant had admittedly received export advance of USD 6,00,524 (₹2.94 crore approx.) in the bank account of M/s Vasu Enterprises and failed to fulfil the corresponding export obligation. The contravention under FEMA was not disputed before the Tribunal. However, it was pleaded that the Appellant was drawn into the transaction by one Shri H.S. Chadda, who arranged the opening of the firm’s bank account, routed the foreign remittances, and immediately transferred the funds to his own accounts and those of associated concerns.
While holding that the contravention stood clearly established, the Tribunal took note of the surrounding circumstances, including the admitted role of Shri H.S. Chadda reflected in the impugned order, the fact that investigations did not comprehensively unearth his involvement, and the Appellant’s weak financial position. Considering these mitigating factors, the Tribunal held that reduction of penalty would meet the ends of justice.
Accordingly, the penalty was reduced from ₹25 lakh to ₹12.5 lakh, and the amount already deposited as pre-deposit pursuant to earlier directions was ordered to be adjusted against the reduced penalty. The appeal was thus partly allowed, with all pending applications disposed of.
FULL TEXT OF THE JUDGMENT APPELLATE TRIBUNAL UNDER SAFEMA AT NEW DELHI
This Order disposes of the Appeal No. FPA-FE-68/DLI/2015 field by Shri Joginder Singh, proprietor of M/s Vasu Enterprises, against the Order No. ADJ/03/FEMA/DZ/2015/JD(AR) dated 31.03.2015 (Impugned Order) passed by the Joint Director, Directorate of Enforcement, Government of India, Delhi Zonal Office, New Delhi. Ld. Adjudicating Authority (AA) imposed the penalty of Rs. 25,00,000/- on the Appellant Shri Joginder Singh, for the contravention of Regulation 16 (1) (i) of Foreign Exchange Management (Export of Goods and Services) Regulations, 2000 vide the Impugned Order. This Tribunal while disposing of the application for waiver of the pre-deposit of the penalty amount directed the Appellant to deposit Rs. 12,50,000/-, which is 50% of the penalty amount. Reportedly the direction had been complied with.
