Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | sale of foreign currency authorised officials |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Memorandum of FLM issued by RBI — Clause 9 - Sale of foreign currency — Restriction - Held: Under paragraph 9, as between the money changers, a free hand has been given for purchase and sale of any foreign currency notes etc. in rupee value — The only restriction imposed therein is that the Indian rupee value of the foreign currency should not be paid by way of cash, but should always be paid in the form of a negotiable instrument or by debiting to the purchasers’ bank account — In the instant case, transaction was carried on by way of payment in the form of pay-orders — It cannot be held that whole transaction was in contravention of paragraph 3 of FLM. Clause 3 - Sale of foreign currency - ‘Authorised officials’ — Held: When a money changer operates its business from its premises, any transaction by way of sale or purchase as part of its money changing business should be carried out only through an authorized representative — In the instant case, it is not the case of respondent that neither of the two persons who indulged in the transaction of money changing business were not the authorized officials of their respective establishments and, as such, violation of paragraph 3 cannot be alleged as against appellants — Sale effected by appellants on a rate higher than the rate prevailing in the market was not the basis for the alleged violation of paragraph 3 of the FLM read with ss. 6(4), 6(5) and 7 of FERA - impugned orders by which appellants were found guilty of the violation of paragraph 3 of FLM read with ss. 6(4), 6(5) and 7 of FERA and the consequential imposition of penalty being wholly unjustified, are set aside — Foreign Exchange Regulation Act, 1973 — ss.6 (4), 6(5), 7 and 8. |
Judge | Hon'ble Mr. Justice Fakkir Mohamed Ibrahim Kalifulla |
Neutral Citation | 2014 INSC 29 |
Petitioner | Tulip Star Hotels Ltd. |
Respondent | Special Director Of Enforcement |
SCR | [2014] 1 S.C.R. 434 |
Judgement Date | 2014-01-16 |
Case Number | 680 |
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