M/S. Telestar Travels Pvt. Ltd. & Ors vs Special Director Of Enforcement

The Supreme Court addressed appeals concerning penalties imposed under Sections 14 and 8(1) of the Foreign Exchange Regulation Act, 1973 (FERA). The Court upheld the High Court's decision to reduce the penalties by 50%, affirming that the appellant's arrangement for ticket purchases did not constitute a violation of FERA as claimed by the Directorate of Enforcement. The ruling clarified the legal permissibility of commercial arrangements in foreign exchange transactions, emphasizing the need for substantial evidence to prove contraventions under FERA.