Jaswant gives ED a strong dose for its FERA fever: review 1,168 cases

This order relates to the cases filed by ED in the two years before the sunset clause under FERA ended on June 1 this year.

When contacted, both former ED Director S S Dawra and his successor, S S Bloeria, said they would not like to comment on the nature or progress of the on-going review.

Incidentally, shortly before he relinquised charge, Dawra had written to the then Revenue Secretary S Narayan giving details of the cases filed, pointing out that the numbers only ‘‘looked large’’ and that ‘‘contrary to popular impression,’’ only 1,168 prosecutions were filed by the ED in two years.

Doing the review is a three-member team comprising officials from the Ministry of Finance, the Ministry of Law and ED.

This team has got directions that while 300 cases can be categorised as ‘‘technical offences’’ and can be proceeded with, a detailed examination of each of the remaining cases should be immediately undertaken.

The review team is holding periodic meetings in the ED Directorate in Lok Nayak Bhavan examining case-files being put up by investigation officers. Since the ED simultaneously holds quasi-judicial proceedings, officials from the Income Tax, Customs and Excise Departments have been included to expedite the process.

Officials in ED say that the courts have already taken cognisance of most of the 1,168 cases put up for prosecution and that a withdrawal could only be done on the formal recommendation of the Government.

Besides these cases, another whopping 6,000 appeals are also being heard by the Appelate Tribunal for Foreign Exchange. The large number of appeals, it was pointed out during deliberations, was cited as another pointer towards how unsubstantiated cases were being filed in courts, causing undue harassment to individuals and companies.

Incidentally, the ED had, in the last days of the sunset period, decided in favour of launching prosecutions against Nestle (India), Indian Tobacco Corporation (the Maurya Hotel group), Indian Hotels Limited (the Taj Hotel group) and DSQ Software. ED officials point out that in all, there are 2,272 FERA cases under prosecution in courts (including the 1,168 cases).