RAM RATTAN GUPTA vs DIRECTOR OF ENFORCEMENT, FOREIGN EXCHANGEREGULATION, AND A

The Supreme Court held that the appellant did not contravene Section 4(1) of the Foreign Exchange Regulation Act, 1947, as depositing foreign exchange in a bank's current account does not constitute a loan to an unauthorized dealer. However, the Court found the appellant guilty of violating Section 4(3) for failing to sell the unspent foreign exchange to an authorized dealer without delay, as he kept the funds in the bank for several years. The penalty imposed by the Enforcement Directorate was upheld.