Overview
- A single-judge bench of Justice Neena Bansal Krishna on December 2 dismissed Canadian national Poonam Gahlot’s writ petition challenging Enforcement Directorate summons under Section 37 of FEMA.
- The order holds that discovery of documents and recording of statements under Section 37 are governed by the Code of Civil Procedure and are analogous to powers under Section 131 of the Income Tax Act.
- The court ruled that the gender-specific protection in Section 160 of the CrPC does not extend to FEMA proceedings, allowing the ED to summon a woman to its office for her statement.
- The petitioner’s requests to avoid personal appearance and to be represented solely through counsel were rejected for lack of legal basis.
- The summons sought documents and a statement to trace the source of funds used to acquire foreign assets, which the court said falls within FEMA’s civil-regulatory framework.