In Brief
This case concerns whether disobeying a summons under Section 40 of the Foreign Exchange Regulation Act, 1973 (FERA) amounts to a punishable offence under Section 56 of FERA. The respondent, summoned by the Enforcement Director in an investigation into unauthorized foreign exchange dealings, failed to appear. The trial court acquitted him, and the High Court upheld the acquittal, relying on the Kerala High Court's view that non-compliance with summons is not a FERA contravention. The Supreme Court reversed this decision, holding that disobedience to a summons issued under Section 40 is indeed a contravention of the Act and falls within Section 56's scope, irrespective of any monetary value involved.
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