M/S. TELESTAR TRAVELS PVT. LTD. vs SPECIAL DIRECTOR OF ENFORCEMENT

The Supreme Court upheld the High Court's decision to reduce the penalty imposed on Telestar Travels Pvt. Ltd. for contravening Sections 14 and 8(1) of the Foreign Exchange Regulation Act, 1973 (FERA). The Court clarified that the arrangement for obtaining cheap seaman tickets did not constitute a violation of FERA, as the appellant's actions were part of a legitimate commercial transaction. The Court affirmed the High Court's order, thereby partially allowing the appeals and reducing the penalty by 50%.