Anz Grindlays Bank Ltd. And Ors. vs Directorate Of Enforcement And Ors.

The Supreme Court addressed the applicability of Section 56 of the Foreign Exchange Regulation Act, 1973, regarding the liability of a company for criminal proceedings. The Court held that while a company cannot be sentenced to mandatory imprisonment, it can still be convicted for offences under the Act. The Court emphasized the need for purposive construction of the statute to ensure that offenders are held accountable, and referred the matter for consideration by a Constitution Bench due to the implications of the previous ruling in Velliappa Textiles Ltd.