As per Rule 8(ii) while returning the seized money it is not mandatory to return along with interest

Last updated: 07 February 2012

Court :
HIGH COURT OF DELHI

Brief :
The writ petition was filed by the respondent pleading that the appellant had on 3rd January, 2003 seized ` 7,75,000/- in Indian currency and foreign currency equivalent to `96,000/- from the custody of the respondent and initiated inquiry under the provisions of Foreign Exchange Management Act 1999 (FEMA); that the adjudicating authority vide order dated 28th June, 2004 forfeited the seized currency and also imposed a penalty of `5 lacs on the respondent; that the respondent filed an appeal before the Appellate Tribunal for Foreign Exchange and which appeal was allowed vide order dated 17th December, 2007 which order has attained finality but the seized currency was not returned inspite of repeated request and ultimately the Indian currency was released only on 1st December, 2008 and foreign currency on 02.02.2009. The respondent thus averred in the writ petition that his monies having been wrongfully withheld by the appellant, he was entitled to interest @ 24% per annum thereon from the date of seizure i.e. 3rd January, 2003 till return on 1st December, 2008 and 02.02.2009 respectively. It was also the contention of the respondent that in fact under Rule 8 of the Foreign Exchange Management (Encashment of Draft, Cheque, Instrument and Payment of Interest) Rules, 2000 the return/refund should have been accompanied with interest @6% per annum.

Citation :
DIRECTORATE OF ENFORCEMENT . ..Appellant Through: Ms. Rajdipa Behura, Adv. Versus SUBHASH MULJIMAL GANDHI ..... Respondent Through: Mr. S. Vasudev & Mr. Rajbir Singh, Adv.

Daily Limit Reached