K.K KUDA vs CHIEF ENFORCEMENT OFFICER, ENFORCEMENTDIRECTORATE

The Supreme Court upheld the High Court's dismissal of the petition to quash the complaint under Section 56 of the Foreign Exchange Regulation Act, 1973 (FERA), which alleged negligence by bank officials in crediting Non-convertible Rupee Funds into a Non-Resident (External) Account. The Court clarified that the prosecution would focus solely on negligence, as allegations of consent and connivance had been previously dropped. The Court emphasized that the complaint's allegations were inseparable, thus rejecting the appellant's request to quash the complaint based on the dropped charges.