In Brief
A diamond trader, Jatin Jhaveri, and associates attempted to transport US currency out of India. Initial Customs proceedings found the currency liable to confiscation. Later, FERA proceedings challenged the acquisition itself under Section 8(1), requiring prior RBI permission. The Appellate Tribunal and High Court quashed confiscation, relying on Currency Declaration Forms and decisions in parallel Customs proceedings. The Supreme Court held that FERA proceedings require independent proof of acquisition with RBI permission—a distinct requirement from merely proving currency importation. As no RBI permission was ever obtained, the acquisition violated Section 8(1) of FERA. The Court restored the confiscation and directed refund of interim relief with 10% interest.
The lawyer headnote and full judgment text are available to registered users.