In Brief
Suborno Bose, Managing Director of M/s Zoom Enterprises Limited, was held liable for penalties under the Foreign Exchange Management Act, 1999 (FEMA) for a contravention committed before he took over the company. The company imported refrigeration equipment under an EPCG licence but failed to submit the required Bill of Entry to complete the import and instead warehoused the goods. Although Bose took over in October 2001, long after the 2000 imports, the Supreme Court held that a FEMA violation of this nature constitutes a continuing offence until the regulatory obligation is fulfilled. Since Bose became aware of the default but failed to rectify it in good faith, he remained liable even though he was not responsible for the initial contravention. The Court dismissed his appeal, upholding penalties of Rs. 10 lakhs each against him and the company."
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