The High Court rendered these findings while dealing with an appeal filed by one Arjun Patil against the orders of the Enforcement Directorate (ED) and the Appellate Tribunal for Foreign Exchange that confiscated ₹12.31 lakh in Indian currency and imposed a penalty of ₹40,000 on Patil for offences under FERA.
The ED had searched Patil’s premises in February 1997, seizing ₹12.31 lakh, US$6,371, four gold biscuits, and documents. Patil allegedly confessed that he was buying gold from Nepal using foreign exchange, violating Sections 81, 82, 63, and 64(2) of FERA. He later retracted his statement, claiming it was obtained under coercion and torture.
In 2003, the Adjudicating Authority found Patil guilty of illegal dealings in gold and foreign exchange and imposed a penalty and ordered confiscation. The order was upheld by the Appellate Tribunal three years later, which led to the appeal before the High Court.
