SHANTI PRASAD JAIN AND ANOTHER vs DIRECTOR OF ENFORCEMENT, FOREIGN EXCHANGE REGULATION A

The Supreme Court held that Section 9 of the Foreign Exchange Regulation Act, 1947 applies to foreign exchange acquired after the Act's commencement, affirming that the Notification dated March 25, 1947 is valid and requires owners to offer foreign exchange for sale within one month of acquisition. The Court found that the appellants contravened this requirement by not offering the foreign exchange within the stipulated time, leading to the forfeiture of travelers cheques and a penalty under Section 23 of the Act. The appeal was dismissed, upholding the orders of the Director of Enforcement and the Appellate Board.