Satya @ Subendy Majumdar Vs Special Director (Appellate Tribunal Under SAFEMA Delhi)
SAFEMA Tribunal: FERA Penalty Cannot Be Sustained Without Evidence Of Role In Hawala Transaction
The Appellate Tribunal under SAFEMA allowed the appeal filed by Satya @ Subendy Majumdar and set aside the penalty imposed under the Foreign Exchange Regulation Act (FERA), 1973.
The case arose from investigations into a hawala network linked to cross-border transactions between India, Bangladesh, and Singapore, where funds generated through alleged over-invoicing of tea exports were transferred abroad through informal channels. During the investigation, authorities alleged that the appellant had received ₹2.5 lakh from his brother Nitya Majumdar and passed it to another person as part of the hawala transaction, thereby aiding and abetting violations of Sections 9(1)(b) and 9(1)(d) read with Section 64(ii) of FERA.
The appellant challenged the penalty on several grounds, including:
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Statements relied upon by authorities had been retracted.
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The relied-upon documents were not supplied during proceedings.
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The findings were based on presumptions and statements of co-accused without corroborative evidence.
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No opportunity of cross-examination was provided.
After examining the record, the Tribunal observed that the impugned order contained only a brief allegation against the appellant but lacked any detailed discussion of evidence establishing his involvement in the alleged hawala transactions.
Result:
Holding that the penalty could not be sustained without proper evaluation of evidence, the Tribunal allowed the appeal and set aside the penalty imposed on the appellant.
FULL TEXT OF THE JUDGMENT APPELLATE TRIBUNAL UNDER SAFEMA AT NEW DELHI
This Order disposes of the Appeal No. FPA-FE-23/KOL/2016 filed by Shri Satya @ Subendy Majumdar, against the Order No.SDE(ER)/YG/02/FERA/2016-17/2466 dated 16.09.2016 (Impugned Order), passed by the Special Director, Enforcement Directorate, Government of India, Kolkata Zonal Office. The Ld. Adjudicating Authority (AA) imposed the penalty of Rs. 1,00,000/-on the Appellant for the contraventions of Sections 9 (1) (b) & 9 (1) (d) read with Section 64 (ii) of the Foreign Exchange Regulation Act, 1973 (FERA), vide the Impugned Order.
