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Sterlite Chairman seeks relief in alleged FERA violation case

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Press Trust of India New Delhi
Last Updated : Jan 20 2013 | 12:00 AM IST

Sterlite Industries Chairman Anil Agrawal, along with two others, has approached the Delhi High Court seeking relief in an alleged FERA violation case on selling shares to Mauritius-based Twinstar Holding.

In their petition, Anil Agarwal and others have challenged the order of the single-member Bench of the Court which had directed the Appellate Tribunal for Foreign Exchange to hear afresh the issue of waiving the predeposit of penalty imposed by the Enforcement Directorate.

During the hearing, a Division Bench headed by Chief Justice A P Shah has directed the government and the ED to produce evidence of an alleged illegal fund transfer of Rs 208 crore to Twinstar Holding from Sterlite Industries.

Sterlite's counsel submitted that it had got permission from the RBI to sell shares to Twinstar Holding and the company which sold the shares "cannot be liable for such enquiry. The onus is on Twinstar Holding. There is nothing on Sterlite".

Rejecting the argument, the Chief Justice said, "The RBI is not the authority to enquire whether the money is of Twinstar Holding or someone else's.

"Evidence came before the Judge that the money was hawala money. How could the RBI's permission prevent enquiry of FERA violation," the Bench said.

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First Published: Jul 26 2009 | 4:34 PM IST

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