Delhi High Court quashes ₹20 lakh FERA penalties due to uncorroborated statements and inadmissible loose sheets.
Delhi HC Quashes ₹20L FERA Penalties
The Delhi High Court has set aside penalties of ₹20 lakh imposed under the Foreign Exchange Regulation Act (FERA), 1973, citing lack of credible evidence. The court held that retracted statements and unverified loose sheets were inadmissible and insufficient to sustain allegations of foreign exchange violations.
The impugned order relied on bank officials’ statements later retracted, and handwritten notes without authentication. The Court emphasized that documentary evidence under Section 17 of FERA must be legally admissible, rejecting reliance on hearsay or non-primary records.
The ruling reinforces evidentiary standards in legacy FERA cases. Practitioners should challenge penalties based on uncorroborated material and ensure strict compliance with authentication norms under the Indian Evidence Act, 1872.
Citations
- FERA, 1973
- Indian Evidence Act, 1872, Section 17
