SC asks Chandraswami to deposit Rs 25 lakh penalty

Last Updated: Wednesday, June 15, 2011 - 17:52

New Delhi: The Supreme Court on Wednesday directed
self-proclaimed godman Chandraswami to deposit Rs 25 lakh
within a week as the first tranche of penalty in several FEMA
violation cases registered by the Enforcement Directorate.

A vacation bench of justices B S Chauhan and Swatanter
Kumar directed Chandraswami and his associate Vikram Singh to
deposit the money in the four matters in which ED has slapped
a penalty.

The ED has imposed a total penalty of Rs 9 crores
(approx) on Chandraswami in 13 cases of FERA violations for
acquiring foreign exchange in contravention of the Act.

During the proceedings, the bench said he Chandraswami has
to pay more than eight crores and asked from his counsel
whether he would pay the penalty or not.

"You have to deposit more than Rs 8 crores... tell us,
whether you would deposit it or not," the bench said.

To this, his counsel assured the apex court that he would
deposit the rest amount soon but to pay the entire amount in
one go "would be extreme hardship" for him.

The court then directed Chandraswami to deposit Rs 25
lakhs and posted the matter in the second week of July for
hearing.

The apex court`s direction came on an application filed
by Chandraswami seeking extension of time for payment of the
penalty imposed by ED.

Earlier, the Appellate Tribunal for Foreign Exchange had
directed Swami to pay Rs 9 crores, the total amount of the
penalty as a pre-condition to hear his case challenging the
penalty imposed by ED.

This was later challenged by him before the Delhi High
Court which dismissed the appeal, following which he had
approached the apex court.

PTI



First Published: Wednesday, June 15, 2011 - 17:52

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