Disposed

FPA-FE-20/DLI/2008 of Jatender Singh Marvaha v/s The Special Director Directorate of Enforcement, Kolkata

ATFP9 Jan 2018FPA-FE-20/DLI/2008

Case brief

AI extract

What is this about?

The Tribunal granted a partial stay on the impugned order enhancing the penalty under FEMA by directing deposit of 20% of the enhanced amount. The appeal was listed for hearing with notice issued for filing written arguments.

What did the court decide?

Stay on operation of impugned order subject to deposit of Rs. 4,00,000/- (20% of enhanced penalty) within six weeks.

FPA-FE-20/DLI/2008 of Jatender Singh Marvaha v/s The Special… — Banking and Recovery | ATFP (2018)

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APPELLATE TRIBUNAL, FOREIGN EXCHANGE MANAGEMENT ACT

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AT NEW DELHI

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Date 09/01/2018

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FPA-FE-20/DLI/2008

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Jatender Singh Marvaha … Appellant Versus The Special Director Directorate of Enforcement, Kolkata … Respondent

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Advocates/Authorized Representatives who appeared

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For the appellant : Dr. Shamshuddin, Advocate Mohd. Hashim, Advocate Ms. Pritika Kashyap, Adv. For the respondent : Shri Prashant Panday, L.C. CORAM JUSTICE MANMOHAN SINGH : CHAIRMAN JUDEMENT

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FPA-FE-20/DLI/2008

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The present appeal has been filed against the order dated 1^st March, 2017 passed by the Special Director, Directorate of Enforcement, Kolkata.

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As per the appellant facts are that-

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The appellant (aged about 40 years) is a NRI and Citizen of U.K. and presently residing at 22, Dallow Road, Luton, Beds LUI-ILY, U.K. having passport no. 800995912 issued by the High Commission of India, Landon.

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The appellant is an engineer by profession and has been working with a company in United Kingdom since last several years.

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On or about 17-01-2011 the Appellant visited India for disposal of a plot of land measuring 18 Marlas situated at Phagwara, Chahal Nagar, Punjab duly gifted to the appellant by his grandmother.

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The appellant sold the said plot of land to Sri Mukesh Kumar, S/o Sri Sohan Lal of phagwara, Punjab through Sri Avtar Singh, S/o Tarsem Singh of Phagwara, a property dealer for total

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FPA-FE-20/KOL/2017 Page 1 of 3

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consideration of Rs. 76,50,000/-(rupees Seventy Six Lakhs Fifty Thousands) only by a Deed of conveyance dated 24-01-2011.

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Besides receipt of Rs. 10 Lakhs as advance from the purchaser of the plot of land, the appellant had received an amount of Rs. 51,19,000/- and sterling pound 20,000/- (twenty thousand) only through the said property dealer after execution of the Deed of conveyance on 24-01-2011 in favour of Sri Mukesh Kumar.

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The officers of Income Tax Department (Investigation Wing), Kolkata intercepted the appellant at NSCBI Airport, Kolkata on his arrival from Delhi by spice jet flight no. SG/212 on 26.01.2011 and upon search recovered and seized Indian Currency Rs. 4900000/and sterling pound 20,000 from the possession of the appellant.

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The Income Tax Authority handed over the seized sterling pound 20,000/- (equivalent to Rs. 14.60 Lakhs) to the Directorate of Enforcement (FEMA) Salt Lake, Kolkata on 27.01.2011 for investigation under FEMA, 1999.

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The officers of the Directorate of Enforcement, Kolkata & Jalandhar made necessary enquiries with the appellant as well as other connected persons in Phagwara, Punjab relating to the sale of plot of land against receipt of payment in Indian Currency and Sterling pound by the appellant under the Provisions of FEMA,1999.

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Alongwith the appeal, the appellant has also filed an application for stay of the impugned order.

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Various contentions have been raised by the learned counsel for the appellant all are not to be decided on merits at the time of the disposal of the stay application. However, it is apparent from the record that the Assistant Director had imposed the total penalty of Rs. 10 lakhs which are enhanced by the Special Director from 10 lakhs to 20 lakhs.

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The contentions of the learned counsel for the appellant is that the same could have not been done as the appellant has sought the adjournment by a letter dated 3^rd February, 2017 and 10^th February, 2017. It is also argued by him that atleast in the impugned order that the Special Director ought to have considered the application for adjournment for the purpose of enhancing the penalty. It is adverted in FPA-FE-20/KOL/2017 Page 2 of 3

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the impugned order that the application for adjournment had not been either considered by the Special Director. There is no rejection of the said application for adjournment. Admittedly, the penalty was enhanced from 10 to 20 lakhs at the back of the appellant. Therefore, at present the entire amount could not be directed to be deposited by the appellant.

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Under these circumstances, the appellant is directed to deposit a sum of Rs. 4,00,000/- (Rs. Four Lakhs only) i.e. 20 % of the total penalty amount imposed with the respondent within six weeks from today.

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Subject to said deposit the operation of the impugned order shall remained stayed.

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In the main appeal, issue notice of the appeal. Reply be filed within six weeks with an advance copy to the counsel for the appellant, who may file the rejoinder within four weeks thereafter.

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List this appeal for hearing on 7^th July, 2018.

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In case the appellant is failed to deposit the said amount the appeal is likely to be dismissed on the next date of hearing.

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(Justice Manmohan Singh) Chairman

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New Delhi, 9^th January, 2018. ‘s’

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FPA-FE-20/KOL/2017

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FPA-FE-20/DLI/2008 of Jatender Singh Marvaha v/s The Special Director Directorate of Enforcement, Kolkata

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FPA-FE-20/DLI/2008 of Jatender Singh Marvaha v/s The Special Director Directorate of Enforcement, Kolkata

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