ENFORCEMENT DIRECTORATE vs M.SAMBA SIVA RAO

The Supreme Court examined whether non-compliance with a summons under Section 40 of the Foreign Exchange Regulation Act, 1973, constitutes an offence under Section 56 of the Act. The Court held that the High Court erred in quashing complaints related to such non-compliance, affirming that refusal to comply with a summons is indeed a contravention punishable under Section 56. The judgment clarified the binding nature of summons issued under Section 40, establishing that such violations are actionable under the Act.