Fera expires, but refuses to depart quietly

NEW DELHI/ KOLKATA: With the Sunset clause deadline for filing of cases under the Foreign Exchange Regulation Act (Fera) expiring on May 31 evening, the Enforcement Directorate has gone into overdrive issuing show cause notices and launching prosecutions in May.
Prosecution has been launched against First Global’s Shankar Sharma, DSQ Software and cigarette major ITC in the last one week, according to ED officials.
A Delhi court on Friday issued summons to Nestle India and three of its top executives, following a complaint from the ED, for allegedly receiving about Rs 200 crore from Russia in their parent company’s account in Finland instead of in India, according to an agency report.
Former minister Satish Sharma has been issued a show cause notice a few days ago for alleged violation of the same Act.
No new cases or investigation can be launched under FERA from June 1, 2002, since all pending investigations under FERA will lapse as per the sunset clause incorporated into FEMA unless concretised either into a show cause notice for civil proceedings or into a complaint in a court for launching of criminal proceedings by May 31.
The enforcement directorate on Friday, chargesheeted in Kolkata six former officials of ITC limited for alleged violation of FERA, but discharged four others including former chairmen, Jagdish Narain Sapru and Krishen Lal Chugh and fomer senior officials Saurabh Mishra and P K Talwar.
The special public prosecutor appearing on behalf of ED, A K Tewary, said in Kolkata that the chargesheet was filed against former directors G K P Reddy, E K Kutty and R P Agarwal and other senior officials E Ravindranathan, N Laxminarayanan and M B Rao. No senior manager of ITC could be contacted for comment.
According to ED officials, there were 7997 bill of entry cases, which are regarded as minor in terms of seriousness of the offence, pending completion of investigation as on April 30, 2002.
Out of these, show cause notices have been issued for starting adjudication in 4264 cases in May and the balance cases were closed after investigation.