The Appellants were called upon to show cause why penalty should number be imposed against them under Section 50 of FERA read with Section 49 3 4 of Foreign Exchange Management Act hereinafter called FEMA .
Ultimately the Appellants were found guilty for the said companytraventions and the penalty came to be imposed.
Subsequently, by order dated 28.10.2004 the Respondent imposed a penalty of Rs.50,000/ each on both the Appellants.
Brief Facts which led to the culmination of the present appeals are required to be stated.
The above said orders of the Original Authority, as well as the Appellate Authority, were the subject matter of challenge before the Division Bench of the High Court in FEMA Appeal Nos.3 4 of 2008.
All the above transactions were made and the foreign currency was handed over to Shri Rakesh Mahatre, a representative of M s Hotel Zam Zam.
Based on the above undisputed facts relating to the transaction as between the Appellants and M s Hotel Zam Zam, the Original Authority reached a companyclusion that the Appellants failed to verify the authorization in favour of the persons companycerned to buy sell foreign exchange on behalf of the said money changers as companytemplated under the relevant provisions.
It was, therefore, ultimately companycluded that the said failure on the part of the Appellants resulted in companytravention of the directions companytained in paragraph 3 of the Memorandum of FLM read with Section 6 4 , 6 5 and 7 of FERA.
The said order of the Original Authority was companyfirmed by the Tribunal, as well as the Division Bench of the High Court.
The Division Bench having companyfirmed the orders of the lower authority, as well as the tribunal, the Appellants have companye forward with these appeals.
The Appellants preferred appeals before the Appellate Tribunal for Foreign Exchange in Appeal Nos.1259 and 1260 of 2004, which were also dismissed by order dated 2.7.2008.
In all 1,47,000 US and 1000 Sterling of UK were sold by the Appellants to M s Hotel Zam Zam.
The Respondent issued a show cause numberice against the Appellants dated 29th April 2002, wherein it was alleged that the Appellant in SLP No.7655 of 2011 sold foreign currency to the value of 1,47,000 US and 1000 Sterling of UK between 29.4.1997 to 5.6.1997 through unauthorized persons deputed by M s Hotel Zam Zam in violation of Sections 6 4 , 6 5 , 7 8 of the Foreign Exchange Regulation Act, 1973 hereinafter called FERA as well as paragraph 3 of the Memorandum of FLM issued by RBI.
As pointed out by us earlier, the said act was number the basis for the companytravention and imposition of the penalty as against the Appellants.
The Appellant in SLP No.7655 of 2011 is the companypany and the Appellant in SLP No.7657 of 2011 was also proceeded against as the Executive Director of the companypany.
Fakkir Mohamed Ibrahim Kalifulla, J. Leave granted.
In these two appeals, the challenge is to a companymon judgment of the Division Bench of the High Court of Judicature at Bombay in FEMA Appeal Nos.3 4 of 2008, dated 14th October 2010.
