Can’t Suspend Passport for Absence During FEMA Probe: Delhi HC

The Delhi High Court on Friday, 12 April, ruled that a passport cannot be suspended or revoked under the Passports Act for non-appearance before an investigation authority proceedings under the Foreign Exchange Management Act, 1999, Bar&Bench reported.

In a petition filed by Junaid Iqbal Mohammed Memon, an NRI, he assailed an order by the Consulate General of India, Dubai, which suspended his passport on the ground that he had failed to appear in person before the Enforcement Directorate (ED) in connection with the alleged violation of FEMA provisions.

Memon also contended that the impounding of his passport was arbitrary as it was not based on any relevant material. He further contended that since he is an NRI, he was not covered by the provisions of FEMA.

The order was passed by a single judge bench of Justice Vibhu Bakhru.

According to Bar&Bench, the repondents told the court that Section 3 of FEMA covered resident nations, NRIs and foreign nationals and that various regulations of FEMA were applicable to NRIs.

The court concluded that the petitioner’s passport was suspended solely on the request made by ED, in the interest of the general public.

The court said there was a material difference between the provisions of FEMA and the Foreign Exchange Regulation Act, 1973 (FERA). The court also said that like FERA, there was no provision for arrest or criminal prosecution under FEMA.

The court reiterated that provisions of FEMA did not entail custodial interrogation and, therefore, an alternative mode of examination under video conferencing was an option available to the ED.

Memon had reportedly agreed to appear by teleconferencing and also made all the arrangements accordingly, but ED had denied the request.

The court opined that the petitioner’s passport could not have been suspended in public interest and set aside the order suspending Memon’s passport.

(With inputs from Bar&Bench)