TULIP STAR HOTELS LTD. vs SPECIAL DIRECTOR OF ENFORCEMENT

The Supreme Court upheld the penalties imposed under Sections 6(4), 6(5), 7 & 8 of the Foreign Exchange Regulation Act, 1973 (FERA) and Section 50 of the Foreign Exchange Management Act (FEMA) for unauthorized foreign currency transactions. The Court found that the Appellants, Tulip Star Hotels Ltd. and its Executive Director, violated regulations by selling foreign currency through unauthorized persons, despite their claims of being licensed Full Fledged Money Changers. The appeals were dismissed, affirming the lower authorities' decisions.