In Brief
Shailendra Swarup, a part-time non-executive Director of Modi Xerox Ltd., was penalized by the Enforcement Directorate for alleged contraventions of the Foreign Exchange Regulation Act, 1973. The High Court dismissed his appeal, holding that his plea of being a part-time Director lacking responsibility for the company's business operations was an afterthought. The Supreme Court allowed his appeal, holding that for a Director to be held liable under Section 68 of FERA, there must be specific findings establishing that he was in charge of and responsible for the company's conduct of business at the relevant time. The Court found no such material evidence on record and emphasized that liability cannot rest merely on holding the designation of Director.
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