M/S. Bharat Carpets vs Director, Enforcement Directorate

The Supreme Court upheld the penalties imposed under Section 18(2) and 18(3) of the Foreign Exchange Regulation Act, 1973, on the appellant firm and its partners for non-realization of export proceeds. The Court found that the appellants failed to demonstrate that the non-realization was due to the negligence of the authorized banker, and thus, the penalties were justified. The Court emphasized that the responsibility for ensuring compliance with foreign exchange regulations lies with the exporters, and the appeal was dismissed.