ED sources here said the penalty had been imposed on the two under Sections 3(a) and 4 of FEMA for unauthorised dealing in foreign exchange and possessing foreign currency.
Both of them were found guilty by ED during adjudication of a case of 2005, the sources said.
The ED has also ordered 'absolute confiscation' of 7,600 US dollars, 10,540 dirhams and 800 Saudi riyals worth Rs 4.54 lakh at the time, seized from Shahabuddin's house during a police raid in 2005.
During the probe into the case, Shahabuddin had said the seized foreign exchange had been given to him by Perwez.
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"Perwez was summoned and he said in a statement that he was an NRI living in Saudi Arabia at the time and had given the money to Shahabuddin as a donation to his 'Islamia Trust'. He also accepted that he was a working committee member of the trust," the ED official said.
Shahabuddin, he said, had handed over the money to him for safekeep, as he (Shahabuddin) had to go somewhere else.