FERA Prosecution dropped - No 'consent' and 'connivance'
THE Show Cause Notice in this FERA case was issued in 1994 against a bank and some of its officers on charges of negligence, consent and connivance in a FERA violation. The charges of consent and connivance were later deleted. But this did not stop the Government from filing a prosecution case. FERA was replaced by FEMA in 2000, but due to a sunset clause, cases could be filed under FERA till 31.5.2002 and the Government filed the complaint on 29.5.2002 and the Court took cognizance of the complaint on the same day.
The Supreme Court on Tuesday quashed the criminal proceedings.