Alliance And Leicester Ltd. Carlton Park v. Enforcement Directorate Through Special Director
2025:BHC-AS:32539-DB Sayyed 22 & 23-FEMA.2-4.2025.docx IN IN THE THE HIGH HIGH COURT COURT OF OF JUDICATURE JUDICATURE AT AT BOMBAY BOMBAY CIVIL APPELLATE JURISDICTION CIVIL APPELLATE JURISDICTION FEMA APPEAL NO.2 OF 2025 FEMA APPEAL NO.2 OF 2025 WITH WITH INTERIM APPLICATION NO.3995 OF 2025 INTERIM APPLICATION NO.3995 OF 2025 Alliance & Leicester Ltd.
Alliance & Leicester Ltd.
...Appellant/Applicant ...Appellant/Applicant
Versus
Versus
Enforcement Directorate, Enforcement Directorate, Through Special Director Through Special Director
...Respondent
...Respondent
AND AND FEMA APPEAL NO.4 OF 2025 FEMA APPEAL NO.4 OF 2025 WITH WITH INTERIM APPLICATION NO.3993 OF 2025 INTERIM APPLICATION NO.3993 OF 2025 Alliance & Leicester Ltd.
Alliance & Leicester Ltd.
...Appellant/Applicant ...Appellant/Applicant
Versus
Versus
Enforcement Directorate, Enforcement Directorate, Through Special Director Through Special Director
...Respondent
...Respondent
_____________________________________________________ Mr. Abhishek Adke for the Appellant/Applicant in both FEMA Appeals Mr. Abhishek Adke for the Appellant/Applicant in both FEMA Appeals and Interim Applications.
and Interim Applications.
Mr. Anil D. Yadav for the Respondent-ED in both FEMA Appeals and Mr. Anil D. Yadav for the Respondent-ED in both FEMA Appeals and Interim Applications.
Interim Applications.
_____________________________________________________ CORAM :
M. S. Sonak & Jitendra Jain, JJ.
DATED : 30 July 2025 PC.:-(Per M. S. Sonak, J.) 1.
Heard learned counsel for the parties.
Heard learned counsel for the parties.
2.
The learned counsel for the parties state that both these The learned counsel for the parties state that both these appeals can be disposed of by a common order since, they challenge the appeals can be disposed of by a common order since, they challenge the common order dated 4 July 2024.
common order dated 4 July 2024.
3.
Mr. Adke, learned counsel for the Appellant, on instructions, Mr. Adke, learned counsel for the Appellant, on instructions, submits that the course of action which was followed for disposing of submits that the course of action which was followed for disposing of connected FEMA Appeal No.1 of 2024 and other connected matters connected FEMA Appeal No.1 of 2024 and other connected matters
Sayyed 22 & 23-FEMA.2-4.2025.docx could be adopted in this case as well. For this, he refers to the order could be adopted in this case as well. For this, he refers to the order dated 2 May 2025 made by the Co-ordinate Bench disposing of FEMA dated 2 May 2025 made by the Co-ordinate Bench disposing of FEMA Appeal No.1 of 2024 and connected appeals.
Appeal No.1 of 2024 and connected appeals.
4.
Mr. Adke, again on express instructions, states that the Mr. Adke, again on express instructions, states that the amount of Rs.1.05 crores involved in FEMA Appeal No.2 of 2025 which amount of Rs.1.05 crores involved in FEMA Appeal No.2 of 2025 which is the subject matter of the impugned order will be paid by the is the subject matter of the impugned order will be paid by the Appellant without prejudice and without admitting any liability or Appellant without prejudice and without admitting any liability or wrongdoing to the Prime Minister's Relief Fund within eight weeks from wrongdoing to the Prime Minister's Relief Fund within eight weeks from the date of uploading of this order. This statement is accepted. Mr. Adke the date of uploading of this order. This statement is accepted. Mr. Adke further states that Rs.1,000/- involved in FEMA Appeal No.4 of 2025 further states that Rs.1,000/- involved in FEMA Appeal No.4 of 2025 has already been paid.
has already been paid.
5.
Mr. Adke has contended that by the order of 2 May 2025, the Mr. Adke has contended that by the order of 2 May 2025, the principals have been exonerated and, therefore, the present Appellant principals have been exonerated and, therefore, the present Appellant cannot be penalised as an abettor. He submitted that it is only to give cannot be penalised as an abettor. He submitted that it is only to give quietus to the proceedings, the Appellant will donate the amount of Rs. quietus to the proceedings, the Appellant will donate the amount of Rs. 1.05 crores to the Prime Minister's Relief Fund, and not seek a refund 1.05 crores to the Prime Minister's Relief Fund, and not seek a refund even if the impugned orders are set aside.
even if the impugned orders are set aside.
6.
From the perusal of the order dated 2 May 2025 relied upon From the perusal of the order dated 2 May 2025 relied upon by the learned counsel for the Appellant, we note that all the parties by the learned counsel for the Appellant, we note that all the parties therein, including the principal, agreed to pay the penalty amount therein, including the principal, agreed to pay the penalty amount without prejudice to their rights and contentions and without admitting without prejudice to their rights and contentions and without admitting any liability. This was one of the considerations based upon which the any liability. This was one of the considerations based upon which the matters were given a quietus and the appeals filed by the Union were matters were given a quietus and the appeals filed by the Union were dismissed.
Since the present Appellant seeks to adopt the same course dismissed. Since the present Appellant seeks to adopt the same course of action, we see no grounds to deviate from the course of action of action, we see no grounds to deviate from the course of action adopted in the order dated 2 May 2025. Even the learned counsel for adopted in the order dated 2 May 2025. Even the learned counsel for the Respondent did not, perhaps, and could not have objected to the the Respondent did not, perhaps, and could not have objected to the adoption of this course of action in these appeals. adoption of this course of action in these appeals.
Sayyed 22 & 23-FEMA.2-4.2025.docx 7.
Therefore, subject to the Appellant donating an amount of Therefore, subject to the Appellant donating an amount of Rs.1.05 crores to the Prime Minister's Relief Fund within eight weeks Rs.1.05 crores to the Prime Minister's Relief Fund within eight weeks from the date of uploading of this order and filing a proof of payment from the date of uploading of this order and filing a proof of payment with an advance copy to the learned counsel for the Respondent, the with an advance copy to the learned counsel for the Respondent, the impugned order dated 4 July 2024 shall stand set aside. However, if impugned order dated 4 July 2024 shall stand set aside. However, if there is no compliance in the matter of payment of this amount of Rs. there is no compliance in the matter of payment of this amount of Rs. 1.
05 crores within eight weeks, then these appeals shall stand dismissed 1.05 crores within eight weeks, then these appeals shall stand dismissed without further reference to this Court, thereby entitling the without further reference to this Court, thereby entitling the Respondent to recover the penalty amount by following the due process. Respondent to recover the penalty amount by following the due process. 8.
Upon the payment of this amount of Rs.1.05 crores to the Upon the payment of this amount of Rs.1.05 crores to the Prime Minister's Relief Fund, the bank guarantee in an amount of Rs. Prime Minister's Relief Fund, the bank guarantee in an amount of Rs. 19.62 crores furnished by the Appellant to the Respondent must be 19.62 crores furnished by the Appellant to the Respondent must be released by the Respondent. Such release must be by writing to the released by the Respondent. Such release must be by writing to the Appellant and the concerned Bank within a maximum of four weeks Appellant and the concerned Bank within a maximum of four weeks from the receipt of proof of payment of Rs.1.05 crores by the from the receipt of proof of payment of Rs.1.05 crores by the Appellant/concerned Authorities.
Appellant/concerned Authorities.
9.
The appeals are disposed of in the above terms. The Interim The appeals are disposed of in the above terms. The Interim Applications do not survive and are also disposed of. No costs. Applications do not survive and are also disposed of. No costs. 10.
All concerned to act on an authenticated copy of this order. All concerned to act on an authenticated copy of this order. (Jitendra Jain, J.) (M. S. Sonak, J.) Signed by: Sayyed Saeed Ali Designation: PA To Honourable Judge Date: 01/08/2025 11:11:48