New Delhi [India], Feb 24 : The Delhi High Court has directed the ED to return over Rs 7 lakh to the owner of Anukampa Tour and Travel company with six per cent interest, which the agency had confiscated from their office in 1995 for the alleged violation of Foreign Exchange law.
Justice Vibhu Bakhru said that Manak Kala, the owner of the company, has been deprived of his funds for a considerable period of time and observed that the confiscation of the amount was wholly illegal and unsustainable.
The court was hearing a petition filed by Kala challenging the order of Appellate Tribunal for Foreign Exchange dated February 28 2016.
It was noted that the Rule 8 of the Foreign Exchange Management (Encashment of Draft, Cheque, Instrument and Payment of Interest) Rules, 2000 provides for repayment of interest at the rate of 6 per cent per annum from the date of seizure till the date of payment.
"Thus, this Court is of the view that the said amount is required to be returned to the appellant along with interest at the rate of 6% per annum. It is so directed," the court said.
"The order dated Feb 17, 2014, passed by the Adjudicating Authority (Deputy Director, Enforcement Directorate), the order dated Sept 24, 2014, passed by the Appellate Authority (Special Director, Appeals), and the impugned order passed by the Tribunal are unsustainable and are, accordingly, set aside," said Justice Bakhru.
The tribunal had dismissed Manak Kala appeal challenging Director of Enforcement's decision to impose a penalty of Rs 75,00,000 on the appellant and directed confiscation of the amount of Rs 7,95,000 seized from his office, under Section 63 of FERA.
On October 4 1995, the business premises of Anukampa Tours and Travels was searched and Indian currency amounting to Rs 7,95,000 and various documents were found in the said premises.
( With inputs from ANI )