HC issues notice to ED on PIL seeking recovery of penalty from

The Madras High Court on Tuesday ordered notice to the Enforcement Directorate on a PIL seeking a direction to the agency for recovering Rs 28 crore fine imposed on AMMK leader T T V Dhinakaran over two decades ago in a FERA case.

A bench comprising Justices M M Sundresh and Krishnan Ramaswamy posted the public interest litigation petition for hearing on April 9 after issuing notice to the ED.

Petitioner S Parthiban submitted the ED had imposed a penalty of Rs 31 crore on Dhinakaran for contravention of Foreign Exchange Regulation Act provisions by way of an adjudication order in 1996. This was reduced to Rs 28 crore subequently on appeal.

Dhinakaran, nephew of ousted AIADMK leader V K Sasikala, had failed to get any favourable orders from the Foreign Exchange Appellate Board, the high court and even the Supreme Court has dismissed an appeal filed by him, he said.

The ED was duty bound to proceed against Dhinakaran to recover the penalty amount, he said adding despite his representations no action had been taken though he (Dhinakaran) had resources to pay it.

The matter related to receipt of more than 10 million USD by Dinkaran in alleged contravention of the Foreign Exchange Regulation Act in 1994-95.

The ED had imposed the penalty following a showcause notice issued to Dinakaran.

The notice had alleged that the accused, a resident of India, being not an authorised dealer in foreign exchange, had acquired foreign exchange totalling USD 1,04,93,313 during 1994-95 without the previous general or special permission of the Reserve Bank of India.

The foreign exchange amount was deposited in the current account of Dipper Investments Company Ltd, a company incorporated in the British Virgin Islands and of which Dinakaran was a director, with the Barclays Bank, Sutton, UK, violating section 8(1) and 9(1)(a) of FERA, the ED had said.