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WEDNESDAY, 31st OCTOBER, 2018 P.C. :

1 By these Appeals, the appellants are challenging the orders passed on 30th March, 2009 and 31st January, 2018. 2 The order in original dated 30th March, 2009 adjudicates a notice styled as a 'Show Cause Notice' dated 8th October, 2003 issued to M/S Silverline Technologies Limited, Shri Ravi Subramanian, Chairman, Shri Krishna Kumar Subramanian, Vice (906) femast-30829-18 & Ors..doc President, Shri K. Kulathu Subramanian @ Mohan Subramanian, a Wholetime Director, for contravention of Section 8 of the Foreign Exchange Management Act, 1999 (for short "the FEMA") read with Section 42(1) thereof along with Regulation 9 and 13 of the Foreign Exchange Management (Export of Goods and Services) Regulations, 2000 for their failure to take reasonable steps to realise and repatriate to India a sum of US $ 2,24,90,927 and also Rs.66,74,78,440/- within the stipulated time and in the prescribed manner, without the general or special permission of the RBI. 3 This Show Cause Notice was adjudicated and an order in original has been passed in the following terms.

"As per the SCN, the notice company failed to realize export proceeds to the tune of US$2,24,90,927 and Rs.66,74,78,440. Even though the notice company has claimed to have realized certain amounts, no certificate from the banks have been produced to substantiate the above claim. The noticees have also not produced any evidence indicating the steps taken by them to recover the outstanding. In these circumstances, I am satisfied that the notice company M/s. Silverline Technologies Ltd. And S/Sh. Ravi Subramanian, Chairman, Krishna Kumar Subramanian, Vice President, K K. Kulathu Subramanian @ Mohan Subramanian, Wholetime Director have contravened the provisions of sec. 8 of the FEMA 1999 read with sec. 42(1) of FEMA, 1999 r/w Regulation 9 and 13 of the Foreign Exchange Management (Export of Goods and Services Regulation 2000) as alleged in the SCN to the extent of US$ 2,24,90,927 and Rs.66,74,78,440. I find them guilty of the said contravention and impose the following penalties:

(906) femast-30829-18 & Ors..doc

1. M/s. Silverline Technologies Ltd. Rs.20,00,00,000/-

The penalty of Rs.20,00,00,000/- (Rupees Twenty Crores only) imposed on M/s. Silverline Technologies Ltd., Rs.1,00,00,000/- (Rupees One Crore only) imposed on Sh. Ravi Subramanian, Chairman, Rs.1,00,00,000/- (Rupees One Crore only) imposed on Sh. Krishna Kumar Subramanian, Vice President and Rs.50,00,000/- (Rupees Fifry Lakhs only) imposed on Sh. K. Kulathu Subramanian @ Mohan Subramanian, Wholetime Director should be deposited in the office of Dy. Director, Directorate of Enforcement, Mittal Chambers, IInd floor, Nariman Point, Mumbai-21 by demand draft/ pay order drawn in favour of Drawing & Disbursing Officer, Directorate of Enforcement, Mumbai-21 within forty five days from the date of receipt of this order. While depositing the penalty this adjudication order No. and Date should be quoted clearly."