Bombay High Court Quashes ED Order Imposing 25Cr Penalty On Sterlite Industries & Its Directors Over Alleged Violation Of Forex Rules
Case: Sterlite Industries (lndia ) Limited and ors v Special Director of Enforcement and ors
Coram: Justices KR Shriram and Milind Jadhav
Case No.: Writ Petition No.337 Of 2009
Court Observation: “Passing of the adjudication order after the offence has been compounded, is thus contrary to the statutory provisions discussed hereinabove, is not maintainable and thus without jurisdiction.”
“The Reserve Bank of India in turn has issued certificates to petitioners acknowledging the payment made by petitioners in respect of the each of the compounding order (five in all) and issued five such separate certificates, all dated 06.02.2009, certifying that petitioners have paid the compounding charges in compliance of the compounding orders passed by the Compounding Authority under section 15 of the said Act read with the said Rules,”
“In these circumstances, we cannot hold petitioners responsible for contravention once the compounding orders have been passed. We have noted that there is a gap of “one day” between the passing of the two sets of orders, i.e., compounding orders and adjudicating order. Be that as it may, petitioners cannot be faulted and held liable for contravention once the compounding orders are passed by the Compounding Authority. That is the mandate of the statute.”
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Keywords
Quashes ED Order, Violation Of Forex Rules
