A fine worth Rs 2 lakh which was imposed on UK based lender, Standard Chartered Bank by Enforcement Directorate has been set aside by the Delhi High Court. The fine was imposed on charges of the bank accepting deposit in NRI account through a person who is not the account holder eighteen years back.

While issuing the order, Justice S N Dhingra said that the law which prohibits any other person than the account holder to deposit money in NRI account was not clear at the time when the incident occured that is in 1992-93.

The circular on this issue was implemented in the year 1995.

"I consider that the Show Cause Notice and the consequent adjudication proceedings were not tenable and the liability of the bank to insist that only NRI should appear in person to make the deposits was not clear. This liability was clarified to the bank only in 1995 i.e. after impugned transaction," the court said.

The court's decision came after the bank had filed a petition against the Directorate's decision.