New Delhi   

ED's appeal against Tribunal dismissed

Staff Reporter

The matter involved alleged violation of FERA by certain companies

NEW DELHI: The Delhi High Court has dismissed an appeal by the Enforcement Directorate (ED) against a decision of the Appellate Tribunal for Foreign Exchange which had set aside an order by the Adjudicating Authority of the Directorate imposing penalties on ABN AMRO Bank, Messrs Maple Leaf Trading International Private Limited of Germany and two others for violation of certain provisions of the defunct Foreign Exchange Regulation Act (FERA) and the Foreign Exchange Management Act (FEMA). The Directorate had alleged that though Maple Leaf was established and incorporated through Indian nationals it was actually a company established and incorporated on behalf of a foreign company for trading in imported gold in India. Such a company could be established only with prior permission of the Reserve Bank (RBI) of India but this one was established without any permission, the Directorate alleged.

The Adjudicating Authority found the respondents - ABN AMRO Bank, Maple Leaf, Lamber Kroger, a German national and managing director of Maple Leaf, and the foreign company -- guilty and imposed various penalties on them. The respondents went in appeal before the Appellate Tribunal, which set aside the Adjudicating Authority's order. The Appellate Tribunal held that the respondents never intended to carry out any illegal activity in India.

Justice R.C. Chopra of the High Court dismissed the appeal of the Directorate saying that there was no question of law involved in the appeal to decide.

Printer friendly page  
Send this article to Friends by E-Mail

Stories in this Section

Scam alleged in delaying of industrial notification
A new way to deal with disabilities
T.N. bag lifting gangs descend on Delhi
Set up grievance cells, Govt. hospitals told
Jal Board Bill referred to House panel
Multicultural food court with the spirit of London
Left writes to PM on water privatisation
Cop held on extortion charge
Sainik Farms' illegal houses razed
"Sur Ka Rishta" to bring Mumbai, Karachi closer
POTA Court rejects Delhi Govt. plea
ED's appeal against Tribunal dismissed
Canara Bank all set to enter Centenary Year
Dengue cases on the rise
Around the City
Briefly
In the Capital Today
Inside Delhi

Copyright © 2005, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu