Delhi High Court cancels ₹20 lakh FERA penalties for lack of evidence, inadmissible documents, and uncorroborated retracted statements.
Delhi HC Set Aside FERA Penalties Over Evidentiary Defects
The Delhi High Court has quashed penalties amounting to ₹20 lakh imposed under the Foreign Exchange Regulation Act (FERA), holding the evidentiary basis unsustainable. The impugned order relied on unproved recovery of loose sheets, inadmissible hearsay, and uncorroborated statements later retracted by witnesses.
The court emphasized that penalties under economic statutes must rest on credible, admissible evidence. It noted the absence of documentary support, bank trails, or corroborative testimony to substantiate foreign exchange violations.
This decision reinforces the standard of proof in FERA and FEMA adjudications: mere suspicion or speculative assertions are insufficient. Practitioners may rely on this precedent when challenging penalties based on weak or retracted evidence.
