3.It is the case of the petitioner that a sum of Rs.40,00,000/- was imposed as penalty against the petitioner for contravention of the provisions of Section 9(1)(b) and 9(1)(d) of the Foreign Exchange Regulation Act, 1973 (Central Act, 46 of 1973) (shortly "FERA"). This was on account of the petitioner having received a sum of Rs.1,08,50,000/- from non local person on behalf of one Syed Ibrahim of Bahrain, who is a person residing outside India, during November 1989 to August 1990. He has also paid various amounts totaling a sum of Rs.1,03,26,500/- to various persons under the orders of said Syed Ibrahim of Bahrain without the permission of the Reserve Bank of India. It is claimed that the petitioner's confessional statement which was corroborated by the confessional statement of other persons, who were assisting him in making compensatory payments as well as by the statements of recipients and documents recovered and seized from his custody. A sum of Rs.3,50,000/- was recovered from the custody of the petitioner, which is an amount found involved in contravention of the provisions of the FERA, but it was directed to be adjusted towards payment of penalty amount. As against the said order, the preferred an appeal under Section 52 of the FERA before the first respondent sometime during October 1994. He has also filed an application to dispense with the pre-deposit of penalty of Rs.40,00,000/- which is a condition precedent for entertaining the appeal. The petitioner's appeal was taken on file as FERA 488/1994 and he was also asked to appear for a hearing on 15.12.1994 vide communication dated 29.11.1994.
