Mumbai Court Acquits Diamond Export Firm, MD In 32-Year-Old FERA Case Over Alleged ₹17 Crore Export Proceeds Violation
The Esplanade Metropolitan Magistrate Court acquitted M/s Mahendra Vakharia and Co. and its managing director in a 32-year-old FERA case alleging non-realisation of export proceeds worth about Rs 17 crore. The court held that the prosecution failed to produce sufficient evidence to establish the alleged violations.
Esplanade Metropolitan Magistrate Court acquitted a diamond export firm and its managing director in a 32-year-old FERA case | Representational Image
Mumbai, June 27: The Metropolitan Magistrate Court, Esplanade, has acquitted M/s Mahendra Vakharia and Co. and its Managing Director, Mahendra Vakharia, who were charged with violating regulations under the Foreign Exchange Regulation Act (FERA) in July 1993.
The firm is alleged to have exported shipments of polished diamonds worth a total of Rs 17 crore to overseas buyers, declaring the consignments under cover of a GR Form in July 1993.
The prosecution alleged that the export proceeds were not realised within six months of the shipment. The court acquitted the accused for want of evidence. The Enforcement Directorate had lodged three separate cases against the firm and its Managing Director.
FERA Allegations Explained
Under the law, the Guaranteed Remittance (GR) Form was a mandatory statutory declaration that every exporter had to submit before shipping physical goods out of India.
The purpose was to ensure the repatriation of the full export value of the goods to India within the strict timeframe prescribed by the Reserve Bank of India (RBI).
In Vakharia's case, the prosecution claimed that the export value was not realised even after six months. A notice was issued to the firm asking it to respond within seven days and clarify whether it had obtained the requisite permission from the RBI.
As the firm allegedly failed to respond and realise the export value, cases alleging violation of FERA were registered against the firm and Vakharia in April 1994.
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Court Finds Evidence Insufficient
After 32 years, the court held: "The evidence is not sufficient to hold that the notice was received by the accused and, despite receiving the notice, the accused refrained from taking action to secure the receipt of the full export proceeds of the goods within the time extended by the RBI."
Accordingly, the court acquitted the firm and its Managing Director of all the charges.
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