India, Dec. 4 -- The Bombay High Court has set aside orders of the transport department cancelling the registration of a high-end Nissan car, holding that an innocent purchaser cannot be penalised for a fraud committed by previous owners and agents.

The court said the buyer had paid customs duty, interest and penalty as directed by the Central Excise and Service Tax Settlement Commission, despite having no role in the illegal import of the vehicle, and therefore cancelling the registration was disproportionate and unjust.

The ruling was made on a writ petition filed by 47-year-old city businessman, Imran Chandiwala, who had challenged the Regional Transport Office Appellate Authority's September 9 order, affirming the cancellation of hi...