Compensation from central government department
Udit
(Querist) 21 March 2018
This query is : Resolved
Under which article/provision of law can an application be filed in the high court for demanding compensation against a central govt department for wrongful issuance of a license to some people and on the basis of the license I acted and sufferred loss and later came to know that due to ignorance of the department the license was wrongly issued to fraud people.
Udit
(Querist) 22 March 2018
Director General of Foreign Trade (DGFT) issued an import license to a company under the scheme of central govt. the import under which was duty free for a particular item of maze if the same after processing is exported to some other country.
I am also the importer of maze and before entering the goods in indian border i sold the same in accordance with govt policy to this company.
The goods got cleared from custom without paying duty as per govt policy. But the company did not process and exported the processed product to any country but rather sold it in the indian market. The payment of the corn was yet to receive, as it was a credit deal.
Now the Directorate of Revenue Intelligence (DRI) cought this practice of the company.
The directors of the company are absconding whereas i submitted all the details including the aadhar and pan to DRI. But they are alleging me that it was my fake company and i will have to trace the directors otherwise they will take action against me.
However i m also a victim due to non verification of correct details by DGFT.
hence i want to file a case of compensation from central government due to negligent act of DGFT. Please advice
Udit
(Querist) 22 March 2018
Director General of Foreign Trade (DGFT) issued an import license to a company under the scheme of central govt. the import under which was duty free for a particular item of maze if the same after processing is exported to some other country.
I am also the importer of maze and before entering the goods in indian border i sold the same in accordance with govt policy to this company.
The goods got cleared from custom without paying duty as per govt policy. But the company did not process and exported the processed product to any country but rather sold it in the indian market. The payment of the corn was yet to receive, as it was a credit deal.
Now the Directorate of Revenue Intelligence (DRI) cought this practice of the company.
The directors of the company are absconding whereas i submitted all the details including the aadhar and pan to DRI. But they are alleging me that it was my fake company and i will have to trace the directors otherwise they will take action against me.
However i m also a victim due to non verification of correct details by DGFT.
hence i want to file a case of compensation from central government due to negligent act of DGFT. Please advice
Guest
(Expert) 22 March 2018
NOT A FIT CASE FOR ANY COMPENSATION.
Compensation is secondary issue. Forget about any compensation for the time being. At first you have the need to get yourself cleared of the allegation of establishing a fake company, whose Directors are absconding. If you have sold the exportable commodity to an Indian company, you cannot claim that you sold the commodity in accordance with the policy of the Government.
Further, one crucial question arises, if the company directors were not fully known to you, on what ground you sold the exportable commodity to that company that too on credit basis. A matter of commonsense, credit is allowed to credit worthy and fully known persons/ companies, not to unknown persons or companies, whose particulars are unverified. That act of yours seems to be the ground of doubt of the DRI against you.
If you get exonerated from the charge of the DRI, even then no compensation would be justified to you by the Government/ DGFT. Even if some lapse is there in not verifying the particulars of that company, that can be a misconduct on the part of the concerned authorities worth taking some penal action as per departmental rules, but still they won't owe any liability towards you for non-verification of the particulars of some other company. It was your own liability to make business transactions with that company after your personal satisfaction.
Guest
(Expert) 22 March 2018
@ Mr. Udit,
Is not it surprising that an exporter expects a charity service from experts, when you were required and also could afford hiring services of some lawyer by getting your case related documents examined in detail?
So, I can very well guess that the problem cannot be a real one, as you seem to have taken even a serious money laundering DRI case with infringement of FEMA in a very casual manner.
If there is even a slightest reality in your description, better consult some really a well experienced local lawyer in FEMA cases, before you are too late.
.
Kappil Cchandna
(Expert) 22 March 2018
Sir,
File writ petition and seek compensation ....
Warm Regards
Kapil Chandna Advocate
9899011450,9911218741
R.Ramachandran
(Expert) 22 March 2018
@Udit: Please indicate in which City you are located.
After knowing this, I will give you some suggestions to deal with the matter.
P. Venu
(Expert) 22 March 2018
Admittedly, there are some proceedings initiated against. First of all, meet the issues on merit and if you are absolved, you can examine the possibility/ feasibility of seeking damages, may be from the third party than from the Government.
Sudhir Kumar, Advocate
(Expert) 23 March 2018
There cannot be any compensation to a person who is reasonably suspected of any malpractice and is hauled up by the concerned department.
Mr Dhingra has already analyzed that there are reasonable grounds of suspecting fraud by you.
Vijay Raj Mahajan
(Expert) 23 March 2018
Facts of your case clearly show the deal with company who were indulging in unlawful activities should have been avoided by you. Please don't say that you were not aware about that company, as its very common practise for any Export-Import Agent to get full information about the Company or person for whom consignment is being imported or exported. The commission of agent is always higher when they are dealing with shady Company or person in a hope to get maximum out of such Company or person because of their shady or unlawful activities.
The DRI knows it very well how the deals are finalises by the Importers and the person for whom the consignment is being imported after all their intelligence only help in catching hard-core criminals/smugglers.
You want to take DGFT/DRI on task for losses incurred to you, better watch out if DRI may be working on criminal proceedings against you under the FEMA and other Acts as accomplish of the Company dealing in unlawful activity.
