No new charges have been slapped by the Enforcement Directorate (ED) in the case regarding allegations of $100 million Foreign Exchange Regulation Act (Fera) violation by ITC Ltd during the six-month-long investigations. The company yesterday received the show-cause notice in the case, nearly a week after the ED announced it was issuing the notices to the tobacco major.
The notices were served at the companys New Delhi office. A company spokesperson said ITC had no comments to offer.
During the process of legal vetting and scanning of the show-cause notice before despatch, no modifications had been made by the adjudication cell headed by EDs special director M C Joshi.
The ITC case has a long legal battle ahead, consisting of adjudication, the quasi-judicial proceeding, and a prosecution process which entails the involvement of a court. The prosecution proceedings will be resorted to if the adjudicating authority considers it necessary.
The question of imprisonment will only arise after the prosecution process is completed and the court takes cognisance of any offence.
Prosecution will be resorted to only if the ED has clinching evidence which needs to be proved.
If the case is resolved at the adjudication stage, then ITC will be made to pay a fine or penalty, depending upon the extent of violation proved as a result of the adjudication process.
