Dinakaran's plea that the transactions were not directly handled by him did not convince the ED's adjudication team. The order states, ``T T V Dinakaran did acquire, deposit, lend and transfer foreign exchange in contravention of various provisions of the Act...the subsequent violations relating to the lending, deposit, transfer and non-repatriation of foreign exchange by Dinakaran essentially emanate from and are relatable to the illicit acquisition of foreign exchange outside India by him.''

According to the order, signed on February 6,Dinakaran was to deposit the full penalty (Rs 31 crore) within 45 days. The penalty has not been deposited till date and, in the meantime, FERA board proceedings chaired by chairman Sarvesh Chandra commenced in New Delhi.

ED watchers point out that the FERA board appeared to be showing ``undue haste'' in settling the Dinakaran matter. Adjudication orders which have been challenged are known to have taken years to be heard by the board. In this case, FERA board proceedings began almost as soon as the order was challenged by Dinakaran. In his appeal, Dinakaran said that the transactions were actually done by Nainesh Desai, a solicitor in England and that he had no funds to pay the ``extraordinary'' penalty.

Several hearings of the Board have been held and while Dinakaran, in his appeal, has pleaded for a waiver of the clause of pre-deposit of penalty, ED lawyers, have interestingly, been arguing for the penalty to be immediately paid up.

Sources say that Dinakaran and his counsel were likely to continuepressing for the waiver of penalty. Among other cases, the FERA board has recently waived the pre-deposit clause for penalties imposed in one complaint filed by the ED against Chandraswami. Lawyers of the controversial godman took the plea that all his property and assets had been attached by the Income Tax Department and other investigating agencies. Dinakaran's lawyers may be looking for a similar reprieve.