Chandraswami let off in FERA violation case

Controversial self-styled godman Chandraswami and his personal secretary were today acquitted by a Delhi court of the charge of violating Foreign Exchange Regulation Act (FERA) relating to payments of 13,910 pounds to law firms to fight his legal cases in the United Kingdom in 1986-87.

"I acquit accused Nemi Chand Jain alias Chandraswami and Kailash Nath Aggarwal (personal secretary) of the charges under the Foreign Exchange Regulation Act," Additional Chief Metropolitan Magistrate Ajay Pandey said.

The court refused to lend credence to the alleged recoveries of various communications and letters relating to payments made to two London-based solicitors' firms.

The Enforcement Directorate (ED) had conducted a search on February 23, 1990, at the residence of Kailash Nath Aggarwal here, which had resulted in the recovery and seizure of documents and letters written by solicitors to Chandraswami.

The seized documents also included the bills raised by solicitors in connection with certain legal cases, including a defamation suit filed by Chandraswami against Lakhu Bhai Pathak in London.

Non-disclosure of source and submission of foreign currency without prior permission from RBI by an Indian national constituted an offence under the FERA, ED has said in its complaint.

The payments to the tune of 13, 910 pounds were made to London based law firms M/s Oswald Hickson Collier and Company and M/s Richard C M Sykes during 1986-1987, A K Vali and Naveen K Matta, special prosecutors of ED, said.

During the investigation, the accused took the plea that the payments were made by some offshore devotees of Chandraswami. They, however, failed to give details.