Majitha Banu.S v. The Assistant Director
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED : 25.07.2024
CORAM
THE HON'BLE MR.JUSTICE C.SARAVANAN 1.S.Majitha Banu 2.Y.Shahul Hameed ... Petitioners Vs.
1.The Assistant Director, Directorate of Enforcement, Madurai Sub Zonal Office, Old No.42, New No.6, Besant Road, Chokkikulam, Madurai.
2.The Bank of India, Rep. by its Manager, Vani Branch, Ramanathapuram District.
... Respondents Prayer: Writ Petition filed under Article 226 of Constitution of India for issuance of a Writ of Mandamus directing the respondent to foreclose the fixed deposit opened by the first respondent out of the money of the petitioners and direct the second respondent Bank, to release the money in favour of the petitioners by considering the representation of the petitioners dated 06.02.2018, within the time that may be stipulated by this Court.
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For Petitioners : Mr.P.Mohammed Suhail for M/s.Ajmal Associates For R1 : Mr.R.Vijayarajan For R2 : No appearance
O R D E R
This Writ Petition has been filed for issuance of a Writ of Mandamus directing the respondent to foreclose the fixed deposit opened by the first respondent out of the money of the petitioners and direct the second respondent Bank, to release the money in favour of the petitioners by considering the representation of the petitioners dated 06.02.2018, within the time that may be stipulated by this Court.
2. At the time when the proceedings were pending against the petitioners before the Adjudicating Authority under Section 3 of the Foreign Exchange Management Act, 1999, the Accounts of the petitioners, in which, Fixed Deposit were made by them, were ordered to be freezed by the first respondent and the amounts were transferred to the account of the first respondent.
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3. Post facto, an Adjudication Order-in-Original No.DD/CEZOII/03/2024 (RV), dated 08.04.2024 has been passed by the Deputy Director, CEZO-II, the Adjudicating Authority. The operative portion of the said Adjudication Order reads as under:-
15. ORDER 15.1 In view of the above discussions and findings and having regard to the facts and circumstances of the case and pursuant to the powers vested with me under Section 13(1) of FEMA, 1999, I hereby impose the following penalties on the Noticees mentioned against each of them:- S.
No.
Name of the Noticees Sections and Regulations Contravened Penalty Amount 1.
Shri Nagoor Pitchai (Noticee No.3) Section 3 (c) of Foreign Exchange Management Act, 1999 to the extent of Rs.
21,00,000/- (Rupees Twenty One Lakhs only).
Rs.10,000/- 2.
Shri S. Sulthan Maideen (Noticee No.4) Section 3 (b) of Foreign Exchange Management Act, 1999 to the extent of Rs.
42,00,000/- (Rupees Forty Two Lakhs only).
Rs.15,000/- 3.
Shri N.
Nasar Mohamed (Noticee No.5) Section 3 (b) of Foreign Exchange Management Act, 1999 to the extent of Rs.
2,50,000/- (Rupees Two Lakhs Fifty Thousand only).
Rs. 5,000/ Page No. 3 of 6
15.2 Further, as the charges of Section 3 (a) of FEMA, 1999 read with regulation 5 of the Foreign Exchange Management (Deposit) Regulations, 2000 to the extent of Rs.1,13,11,000/- (Rupees One Crore Thirteen Lakh and Eleven Thousand Only) against Shri Y.Shahul Hameed (a person resident outside India) and to the extent of Rs.1,20,40,000/- (Rupees One Crore Twenty Lakhs Forty Thousand Only) against Smt. S. Malitha Banu (a person resident outside India) have been dropped, I do not propose to order confiscation of the amount of cash balances as available in the (a) Deposit No. 829045110001077 for an amount of Rs.74,65,961/- emanating from the 3 Term Deposit Receipts of (Smt. S. Malitha Banu), (b) Deposit No.829045110001078 for an amount of Rs.68,87,259/- emanating from the 3 Term Deposit Receipts of Shri Y.
Shahul Hameed) along with (c) Deposit No.829045110001079 for an amount of Rs. 23126.37/- (Rs.14,095.37.00 emanating from the SB accounts of both ("the Noticee No.1 and Rs.9031.00 from the Noticee No.2, herein") as informed by the BOI, Vani vide their letter dated 09.02.2015 along with the accrued interest thereon.
15.3 The above said penalties should be deposited at the Office of the Joint Director, Chennai Zone - II, Directorate of Enforcement, Shastri Bhavan, Third Block, Fourth Floor, No.26, Haddows Road, Chennai - 600006, within 90 days from the date of the receipt of the Order, by means of crossed Demand Drafts drawn in favour of "The Drawing & Disbursing Officer, O/o The Joint Director, Directorate of Enforcement, Chennai" payable at Chennai. While paying the penalty amount, the particulars of Adjudication Order No. and Date mentioned in the first page of this Order, a should be quoted without fail.
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4. Since the proceedings against the petitioners have been dropped vide the aforesaid Adjudication Order, I see no impediment in allowing this Writ Petition. The respondents are directed to take steps to release the amount in the Fixed Deposits to the petitioners, in accordance with the aforementioned Adjudication Order, as expeditiously as possible.
5. Accordingly, this Writ Petition is allowed. No costs. 25.07.2024 Index: Yes / No Speaking Order / Non-Speaking Order JEN Copy To:
1.The Assistant Director, Directorate of Enforcement, Madurai Sub Zonal Office, Old No.42, New No.6, Besant Road, Chokkikulam, Madurai.
2.The Manager, Bank of India, Vani Branch, Ramanathapuram District.
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C.SARAVANAN , J.
JEN 25.07.2024 Page No. 6 of 6