The Supreme Court on Monday dismissed the petition of Bangalore-based United Telecoms Ltd (UTL) challenging penalty imposed by the Enforcement Directorate for violation of foreign exchange norms.

A vacation bench comprising Justices B S Chauhan and Swatanter Kumar dismissed the petition of UTL and its director challenging the Rs 1.3 crore penalty imposed by the Enforcement Directorate.

ED had slapped penalty under the FERA Act, after the company failed to realise USD 1.44 million from export of telecom equipment to Bangladesh from 1995 to 1997.

UTL had exported equipment to the Bangladesh Rural Telecom Authority worth of USD 1.79 million during the period and despite extension of time by the Reserve Bank of India, it failed to realise the sum.

ED initiated the proceedings under FERA and imposed a penalty of Rs 1 crore on the company and Rs 30 lakh on the its director C Basavappuniah.

The company moved the Appellate Tribunal for Foreign Exchange, which dismissed its petition after observing that UTL had not taken "any reasonable steps to recover the balance".

It was later challenged before the Karnataka High Court, which also dismissed it observing that there was "no infirmity in the order passed by the Enforcement Directorate".

Finally, it was taken before the Supreme Court, which has also declined to give any relief to the company.