SHAILENDRA SWARUP vs THE DEPUTY DIRECTOR,ENFORCEMENT DIRECTORATE

The Supreme Court upheld the penalty imposed under Section 8(3) and Section 68 of the Foreign Exchange Regulation Act, 1973 (FERA, 1973) on the appellant, a non-executive director of Modi Xerox Ltd., for failing to comply with the requirements of the Act regarding foreign exchange transactions. The Court clarified that the role of a non-executive director does not exempt one from liability under FERA if the company contravenes its provisions. The appeal against the Delhi High Court's dismissal of the appellant's challenge to the penalty was dismissed, affirming the enforcement of regulatory compliance in foreign exchange matters.