In Brief
The Union of India appealed against a High Court judgment allowing writ petitions filed by Godrej Industries Ltd. and its two directors. The respondents had filed appeals against an adjudication order imposing penalties under the Foreign Exchange Regulation Act (FERA) before the Special Director under FEMA, after FERA was repealed in 2000. The Supreme Court held that such appeals must be filed before the Appellate Tribunal under Section 19 of FEMA, not before the Special Director under Section 17 of FEMA. The Court reasoned that Section 49(5)(b) of FEMA transferred all pending appeals under FERA to the Appellate Tribunal, reflecting the legislature's intent to consolidate all such appeals under a single appellate authority. The Court allowed the appeal and directed that the pending appeals be transferred to the Appellate Tribunal for disposal on merits.
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