In Brief
The Supreme Court upheld the penalty imposed on the Managing Director of a company for violation of foreign exchange regulations. The company imported goods under an export promotion licence but failed to complete the import formalities by submitting the Bill of Entry, leaving goods in a bonded warehouse. Although the appellant became Managing Director after the initial contravention in 2000, he remained liable because the violation constituted a continuing offence. The Court held that civil penalties under the Foreign Exchange Management Act do not require mens rea; they are remedial in nature and persist until corrective measures are taken. The appellant's failure to rectify the matter despite awareness rendered him liable under the applicable statutory provisions.
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