Resident In India

Resident in India, the intention of the Legislature was plainly to prohibit all transactions in foreign exchange by persons who are residents of India whether such transactions take place during their actual residence in India or during their sojourn in foreign parts. To hold that the prohibition under the Act does not extend to acts done outside India by residents of India must inevitably lead to large-scale evasion of the Act resulting in its object being defeated. A construction which leads to such a result must be avoided. The expression 'resident in India' is clearly used in the sense 'resident of India', Shanti Prasad Jain v. Director of Enforcement, AIR 1962 SC 1764 (1778): (1963) 2 SCR 297. [Foreign Exchange Regulation Act, (7 of 1947), s. 4(1)]