Bombay High Court
Indusind Bank Limited vs The Special Director Enforcement ... on 3 July, 2025
Author: M.S. Sonak
Bench: M.S. Sonak
Digitally signed
by LAXMIKANT
LAXMIKANT GOPAL
GOPAL CHANDAN (901 TO 910) FEMA-3.25&ORS..DOCX
CHANDAN Date:
2025.07.03
19:05:43 +0530
lgc
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
FEMA APPEAL NO.3 OF 2025
WITH
INTERIM APPLICATION NO.7511 OF 2025
IN
FEMA APPEAL NO.3 OF 2025
Industrial Development Bank
of India (IDBI) Ltd.
(Erstwhile United Western Bank Ltd.) : Appellant.
Versus
Unio of India
Through Enforcement Directorate : Respondent
ALONG WITH
FEMA APPEAL (ST) NO.4112 OF 2025
WITH
INTERIM APPLICATION NO.1727 OF 2025
IN
FEMA APPEAL (ST) NO.4112 OF 2025
Bank of Baroda : Appellant.
Versus
Unio of India
Through Enforcement Directorate : Respondent
ALONG WITH
FEMA APPEAL (ST) NO.5062 OF 2025
WITH
INTERIM APPLICATION NO.1832 OF 2025
IN
FEMA APPEAL (ST) NO.5062 OF 2025
Doha Bank Q.P.S.C.
(Erstwhile HSBC Bank Oman S.A.O.G.) : Appellant.
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Versus
Union of India
Through Enforcement Directorate : Respondent
ALONG WITH
FEMA APPEAL NO.26 OF 2025
WITH
INTERIM APPLICATION NO.3090 OF 2025
IN
FEMA APPEAL NO.26 OF 2025
Federal Bank Ltd. Mumbai : Appellant.
Versus
The Special Director
Enforcement, Ministry of Finance
Department of Revenue : Respondent
ALONG WITH
FEMA APPEAL NO.27 OF 2025
WITH
INTERIM APPLICATION NO.3745 OF 2025
IN
FEMA APPEAL NO.27 OF 2025
Indusind Bank Limited : Appellant.
Versus
The Special Director
Enforcement, Ministry of Finance
Department of Revenue : Respondent
ALONG WITH
FEMA APPEAL NO.28 OF 2025
WITH
INTERIM APPLICATION NO.3095 OF 2025
IN
FEMA APPEAL NO.28 OF 2025
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State Bank of Patiala
(Now State Bank of India) : Appellant.
Versus
The Special Director
Enforcement, Ministry of Finance
Department of Revenue : Respondent
ALONG WITH
FEMA APPEAL NO.29 OF 2025
T. V. Ramchandran Nair
Former Chief Manager, Inspection Dept.
Federal Bank Ltd. : Appellant.
Versus
The Special Director
Enforcement, Ministry of Finance
Department of Revenue : Respondent
ALONG WITH
FEMA APPEAL NO.30 OF 2025
V. J. Joseph
Former Manager, (ADMIN)
Federal Bank Ltd. : Appellant.
Versus
The Special Director
Enforcement, Ministry of Finance
Department of Revenue : Respondent
ALONG WITH
FEMA APPEAL NO.31 OF 2025
K. Thomas
Former Senior Manager,
Federal Bank Ltd. : Appellant.
Versus
The Special Director
Enforcement, Ministry of Finance
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Department of Revenue : Respondent
ALONG WITH
FEMA APPEAL NO.33 OF 2025
L. R. Chandrashekharan
Former Manager, Administration,
Federal Bank Ltd. : Appellant.
Versus
The Special Director
Enforcement, Ministry of Finance
Department of Revenue : Respondent
ALONG WITH
FEMA APPEAL NO.34 OF 2025
V. K. Varghese : Appellant.
Versus
The Special Director
Enforcement, Ministry of Finance
Department of Revenue : Respondent
ALONG WITH
FEMA APPEAL NO.35 OF 2025
WITH
INTERIM APPLICATION NO.1751 OF 2025
IN
FEMA APPEAL NO.35 OF 2025
Canara Bank Mumbai : Appellant.
Versus
The Special Director
Enforcement, Ministry of Finance
Department of Revenue : Respondent
______________________________________________________
Mr.Madhur Rai a/w Mr.Sachin Kanse i/b PRS Legal for the
Appellant/Applicant in FEMA No. 3/2025 and FEMA(ST)
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No.4112/2025.
Mr.Sanjeev Punalekar i/b PRS Legal for the
Appellant/Applicant in FEMA(ST)/5062/2025.
Mr.Raghav Gupta a/w Ms.Tressa Benny & Ms.Rashi Savla i/b
Wadia Ghandy & Co. For the Appellant/Applicant in
FEMA Nos. 26/2025, 27/2025 28/2025, 29/2025,
30/2025, 31/2025, 33/2025, 34/2025 and 35/2025
Ms.Neha Bhide, SPP for the Respondent - ED in
FEMA/3/2025, FEMA (ST) No. 4112/25 and FEMA
(ST) No. 5062/2025. FEMA Nos. 27/2025, 29/2025,
30/2025, 31/2025, and 34/2025
Mr.Anil D.Yadav for the the respondent - ED in FEMA Nos.
26/2025, 28/2025, 33/2025 and 35/2025
______________________________________________________
CORAM : M.S. Sonak &
Jitendra Jain, JJ.
DATED : 03 JULY 2025 PC:-
1. Heard learned counsel for the parties.
2. We admit these Appeals on the following questions of law:-
a. Whether in the facts and circumstances of the case and in law, the Adjudicating Authority was justified in Imposing liability on the Appellant on the basis of vague, unclear and unspecific charges reflected in the Show Cause Notice/ Addenda dated 20th November 2000 which was issued belatedly as an afterthought and without the Appellant being provided with specific particulars of the charge framed against it?Page 5 of 7 ::: Uploaded on - 03/07/2025 ::: Downloaded on - 01/08/2025 22:13:21 :::
(901 TO 910) FEMA-3.25&ORS..DOCX b. Whether in the facts and circumstances of the case and in law, the Appellate Tribunal was justified in holding that the Appellant had abetted the violation of the provisions of Section 8(3) of FERA by the entities forming part of the HAMCO Group, merely because the Appellant was, as an officer of the Bank, involved in opening L/Cs and/ or authorizing remittances thereunder, on behalf of the HAMCO Group?
c. Whether in the facts and circumstances of the case and in law, the Appellate Tribunal was correct in holding 'negligence' to be synonymous with 'abetment' particularly when the ingredients of abetment, including mens rea were not alleged, let alone proved?
d. Whether in the facts and circumstances of the case and in law, the offence under Section 107 of the Indian Penal Code, 1860 is made out in the absence of allegations, let alone evidence, regarding specific mental state of the Appellant?
e. Whether in the facts and circumstances of the case and in law, the Appellate Tribunal has erred in not considering that the Respondent has failed in fulfilling its duty of proving the allegations against the Appellant regarding violation of law 'beyond reasonable doubt' in the proceedings, which are quasi- criminal in nature?
f. Whether the penalty imposed under Section 50 of FERA for opening L/Cs in the absence of Bill of Entry is tenable?"
3. Ms. Bhide waives service on behalf of the Respondent in FEMA/3/2025, FEMA (ST) No. 4112/25 and FEMA (ST) No. 5062/2025. FEMA Nos. 27/2025, 29/2025, 30/2025, 31/2025, and 34/2025 and Mr. Yadav waives service on behalf of the Respondent in FEMA Nos. 26/2025, 28/2025, 33/2025 and 35/2025.
4. Tag these Appeals along with FEMA No.5 of 2025.Page 6 of 7 ::: Uploaded on - 03/07/2025 ::: Downloaded on - 01/08/2025 22:13:21 :::
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5. All Interim Applications in these Appeals as well as Interim Application No.7587 of 2025 in FEMA No.5 of 2025 will be taken up on 09 July 2025.
(Jitendra Jain, J) (M.S. Sonak, J) Page 7 of 7 ::: Uploaded on - 03/07/2025 ::: Downloaded on - 01/08/2025 22:13:21 :::