J.P Morgan India Pvt. Ltd. inquired on the alleged violation of Section 6(6) of the Foreign Exchange Management Act, 1999

Last updated: 01 June 2021

Court :
Delhi High Court

Brief :
These petitions have been filed by the petitioner challenging the Show Cause Notice(s) dated 29.01.2020 and the consequent Order(s) dated 05.06.2020 and the Communication(s) dated 03.09.2020 of the respondent no. 1, proceeding with the inquiry against the petitioner under the Foreign Exchange Management (Adjudication Proceedings and Appeal) Rules, 2000 (hereinafter referred to as the ‘Adjudication Rules’) on the alleged violation of Section 6(6) of the Foreign Exchange Management Act, 1999 (hereinafter referred to as the ‘FEMA’) read with Regulation 3 of the Foreign Exchange Management (Establishment in India of a branch office or a liaison office or a project office or any other place of business) Regulations, 2000 (hereinafter referred to as the ‘Place of Business Regulations’).

Citation :
W.P.(C) 6240/2020 & CM 22295/2020

IN THE HIGH COURT OF DELHI AT NEW DELHI

Reserved on: 16.04.2021
Date of Decision: 25.05.2021

W.P.(C) 6239/2020 & CM 22293/2020
W.P.(C) 6240/2020 & CM 22295/2020

J P MORGAN INDIA PRIVATE LIMITED ..... Petitioner

Through Mr.Siddharth Agarwal, Sr. Adv.
with Mrs.Pallavi Shroff,
Mr.Nishant Joshi, Ms.Sowjhanya
Shankaran, Mr.Kunal Singh,
Ms.Nimrah Alvi, Ms.Nitika
Khaitan, Advs.

versus

SPECIAL DIRECTOR, DIRECTORATE OF ENFORCEMENT
AND ANR ..... Respondents
Through Mr.Sanjay Jain, ASG with
Mr.Amit Mahajan, CGSC with
Ms.Mallika Hiremath, Adv.

CORAM:

HON'BLE MR. JUSTICE NAVIN CHAWLA

1. These petitions have been filed by the petitioner challenging the Show Cause Notice(s) dated 29.01.2020 and the consequent Order(s) dated 05.06.2020 and the Communication(s) dated 03.09.2020 of the respondent no. 1, proceeding with the inquiry against the petitioner under the Foreign Exchange Management (Adjudication Proceedings and Appeal) Rules, 2000 (hereinafter referred to as the ‘Adjudication Rules’) on the alleged violation of Section 6(6) of the Foreign Exchange Management Act, 1999 (hereinafter referred to as the ‘FEMA’) read with Regulation 3 of the Foreign Exchange Management (Establishment in India of a branch office or a liaison office or a project office or any other place of business) Regulations, 2000 (hereinafter referred to as the ‘Place of Business Regulations’).

2. As the Show Cause Notice(s) and the Impugned Order(s)/Communication(s) are based on the same grounds for proceeding against the petitioner and the challenge thereto is common in both the petitions, the petitions are being adjudicated by way of this common judgment and order.

3. The petitioner herein is a private limited company incorporated under the Indian Companies Act, 1956. It is a subsidiary of JP Morgan India Securities Holding Limited, Mauritius (‘JPMISHL’).

4. The genesis of the inquiry launched by the respondents originates from the judgment and order dated 23.07.2019 passed by the Supreme Court in W.P.(C) No. 940 of 2017, titled Bikram Chatterji & Ors. v. Union of India & Ors., finding various fraudulent transactions of Amrapali Group of Companies.

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