ARJUN PATIL vs UOI & ORS

Judgment text excerpt

* IN THE HIGH COURT OF DELHI AT NEW DELHI Date of decision: 14th OCTOBER, 2025 IN THE MATTER OF: + CRL.A. 407/2007 ARJUN PATIL .....Appellant Through: Mr. Jaspreet Singh Kapur, Mr. Wasim Ansari and Ms. Shweta, Advocates. versus UOI & ORS .....Respondents Through: Ms. Bharathi Raju, (SPC) with Miss. Divyangi, Advocates for UoI. Mr. Vivek Gurnani, Panel Counsel with Mr. Kanishk Maurya, Advocate for ED. CORAM: HON'BLE MR. JUSTICE SUBRAMONIUM PRASAD HON'BLE MR. JUSTICE VIMAL KUMAR YADAV JUDGMENT SUBRAMONIUM PRASAD, J. 1. The present Appeal has been filed by the Appellant under Section 35 of the Foreign Exchange Management Act, 1999 (hereinafter referred to as 'FEMA') assailing the order dated 19.12.2003 passed by the Deputy Director, Directorate of Enforcement (hereinafter referred to as “Adjudicating Authority”), and the order dated 10.08.2006 passed by the Appellate Tribunal for Foreign Exchange (hereinafter referred to as “Appellate Tribunal”) confirming the Order of the Adjudicating Authority confiscating Indian currency amounting to Rs. 12,31,000/- lying with the Appellant under Section 63 of the Foreign Exchange Regulation Act, 1973 Signature Not Verified Digitally Signed CRL.A. 407/2007 Page 1 of 47 By:SHAZAAD ZAKIR Signing Date:17.10.2025 16:09:28 (hereinafter referred to as 'FERA') on the ground that the Appellant had attempted to purchase foreign exchange and gold, and imposed a penalty of Rs.40,000/- on the Appellant. 2. Shorn of unnecessary details, the facts leading to the instant appeal are as follows:- i. On 16.02.1997, after receipt of specific information that an illegal foreign exchange business was being conducted by the Appellant, Respondent No. 2 i.e. the Enforcement Directorate (hereinafter referred to as “Respondent Agency”), conducted a search of the