The enforcement directorate (ED) has levied a penalty of Rs 14.40 lakh on Hurriyat Conference (G) chairman Syed Ali Geelani in a 17-year-old case of “illegal” possession of USD 10,000 in alleged contravention of the foreign exchange law, officials said Friday.
The foreign currency, that equals to about Rs 6.90 lakh, hasalso been confiscated by the agency as part of an order issued under theForeign Exchange Management Act (FEMA) on March 20.
The foreign currency was allegedly seized during an IncomeTax raid at Geelani’s residence in Srinagar’s Hyderpora area in 2002.
The case against Geelani, 89, has been adjudicated andpenalty and confiscation order has been issued by the special director rankofficer of the agency, who is entrusted to adjudicate the FEMA cases.
The ED took up the case after taking cognisance of theIncome Tax report and had also issued summons to Geelani to appear before it inSrinagar.
Geelani’s counsel had then submitted a written reply and”denied” the recovery of foreign currency from his residence and the subsequentseizure.
Under the FEMA, foreign exchange dealings are regulated inIndia and acquisition and possession of foreign exchange by resident Indiansare required to be conducted in accordance with the general or specialpermission.
“Geelani did not have any such permission or bona fideexplanation for acquisition and possession of the foreign currency. Therefore,he has been asked to show cause to the adjudicating officer under FEMA within30 days as to why the recovered currency should not be confiscated and penaltyimposed on him,” the agency had said earlier.
A similar proceeding against another separatist Yasin Malik, former chairman of JKLF, for illegal acquisition of foreign exchange is “in progress”, the ED said.