HC upholds FEMA proceedings against private firms

The Madras High Court has upheld the proceedings initiated by the Enforcement Directorate (ED) under the provisions of the Foreign Exchange Maintenance Act (FEMA) against two private firms and their owners.

The court was disposing of three writ petitions from Ramu Annamalai Ramasamy, director of GI Technology Private Limited here, Palaniappan Ramasamy of GI Retail Private Limited and R Umayal Radhai, wife of Annamalai, recently.

"It is settled law that the summons issued under Section 37 of the FEMA by the officers of the Enforcement Directorate, cannot be questioned by way of a writ. When there is suspicion with regard to the involvement of the petitioners in any of the transactions which are prohibited under the FEMA Act, it is open to the respondent authorities to summon them for enquiry.," Justice R Mahadevan said.


The petitioners sought to declare the search operations conducted by the ED officials at their premises on September 2 and 3 this year as null and void, to restrain the officials from causing physical and mental harassment and to transfer the case to some other officers.