Delhi High Court keeps FEMA penalties for NRNR deposits but sets aside confiscation
The Enforcement Directorate penalised three deposit holders for contravention over NRNR accounts opened while in Canada. The Appellate Tribunal and adjudicator had imposed penalties plus confiscation. On 8 April 2026 the Delhi High Court kept the penalties but set aside the confiscation as non-speaking.
This page records what the cited court, tribunal and government records say happened. Findings belong to the court or authority that made them; this register adds none of its own. Names of private individuals are withheld unless a naming gate clears them.
How we verify →Penalties stand; confiscation stands set aside after the 8 April 2026 judgment.
What happened
The High Court recorded that the appellants opened Non-Resident (Non-Repatriable) Rupee Accounts while in Canada and in 2001 obtained loans against those accounts to open further accounts.
The High Court recorded that the adjudicator found contravention of Section 3(b) read with Section 6(3)(f) and imposed penalties plus confiscation of balances.
The High Court recorded that the Tribunal's common order dated 31.05.2012 had upheld the action, and the appeals before the High Court were reserved on 11.03.2026.
The High Court held there was no warrant to interfere with the penalties but the confiscation direction could not be sustained, and partially allowed the appeals.
What the record says
“The appeals are partially allowed in the above terms.”
[name withheld] vs Special Director Enf. Dte., Delhi High Court judgment pronounced 08.04.2026, operative paragraph — read the full text
A peaceful economic act
Holding deposits and borrowing against them involved no complaining victim, with the judgment noting there was no loss of foreign exchange.
What we could not confirm
Penalty amounts in rupees could not be confirmed from the excerpt; only the fact of penalties and confiscation was visible.