The Foreign Exchange Management Act, 1999
(42 of 1999)
An Act to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India .
Be it enacted by
Parliament in the Fiftieth Year of the Republic of India as follows:
Received the assent of the President on 29.12.1999 and
published in the Gazette of India, Ext., Pt.II, Section 1, dated 29.12.1999.
Enforced on 1.6.2000 vide G.S.R. 371 (E), dated 1.5.2000.
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CHAPTER I
Preliminary
1. Short title, extent,
application and commencement .(1) This Act may be
called The Foreign Exchange Management Act , 1999.
(2) It extends to the
whole of India.
(3) It shall also apply to
all branches, offices and agencies outside India owned or controlled by a
person resident in India and also to any contravention thereunder committed
outside India by any person to whom this Act applies.
(4) It shall come into
force on such date as the Central Government may, by notification in the
Official Gazette, appoint:
Provided that different
dates may be appointed for different provisions of this Act and any reference
in any such provision to the commencement of this Act shall be construed as a
reference to the coming into force of that provision.
Object & Reasons
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Statement of Objects and Reasons.-The Foreign Exchange Regulation Act, 1973
was reviewed in 1993 and several amendments were enacted as part of the
on-going process of economic liberalisation relating to foreign investments
and foreign trade for closer interaction with the world economy. At that
stage, the Central Government decided that a further review of the Foreign
Exchange Regulation Act would be undertaken in the light of subsequent
developments and experience in relation to foreign trade and investment. It
was subsequently felt that a better course would be to repeal the existing
Foreign Exchange Regulation Act and enact a new legislation. Reserve Bank of
India was accordingly asked to undertake a fresh exercise and suggest a new
legislation. A Task Force constituted for this purpose, submitted its report
in 1994 recommending substantial changes in the existing Act.
2. Significant developments have taken place since 1993
such as substantial increase in our foreign exchange reserves, growth in
foreign trade, rationalisation of tariffs, current account convertibility,
liberalisation of Indian investments abroad, increased access to external
commercial borrowings by Indian corporates and participation of foreign
institutional investors in our stock markets.
3. Taking into consideration the above facts a Bill to
repeal and replace the Foreign Exchange Regulation Act, 1973 was introduced
in Lok Sabha on 4th August, 1998. The said Bill was referred to the Standing
Committee on Finance, which submitted its report to the House on 23rd
December, 1998 with certain modifications and suggestions. Before any
decision could be taken by the Central Government on the recommendations of
the Standing Committee on Finance, the 12th Lok Sabha was dissolved. Due to
the dissolution of the Lok Sabha the Bill also lapsed.
4. After incorporating certain modifications and
suggestions of the Standing Committee on Finance, the Central Government has
decided to introduce the Foreign Exchange Management Bill and repeal the
Foreign Exchange Regulation Act, 1973. The provisions of the Bill aim at
consolidating and amending the law relating to foreign exchange with the
objective of facilitating external trade and payments and for promoting the
orderly development and maintenance of foreign exchange markets in India.
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(a) Adjudicating Authority means
an officer authorised under sub-section (1) of section 16;
(b) Appellate Tribunal means the
Appellate Tribunal for Foreign Exchange established under section 18;
(c) authorised person means an
authorised dealer, money changer, off-shore banking unit or any other person
for the time being authorised under sub-section (1) of section 10 to deal in
foreign exchange or foreign securities;
(d) Bench means a Bench of the
Appellate Tribunal;
(e) capital account transaction
means a transaction which alters the assets or liabilities, including
contingent liabilities, outside India of persons resident in India or assets or
liabilities in India of persons resident outside India, and includes
transactions referred to in sub-section (3) of section 6;
(f) Chairperson means the
Chairperson of the Appellate Tribunal;
(g) chartered accountant shall
have the meaning assigned to it in clause (b) of sub-section (1) of section 2
of the Chartered Accountants Act, 1949 (38 of 1949);
(h) currency includes all currency
notes, postal notes, postal orders, money orders, cheques, drafts, travellers
cheques, letters of credit, bills of exchange and promissory notes, credit
cards or such other similar instruments, as may be notified by the Reserve
Bank;
(i) currency notes means and
includes cash in the form of coins and bank notes;
(j) current account transaction
means a transaction other than a capital account transaction and without
prejudice to the generality of the foregoing such transaction includes,
(i) payments due in connection
with foreign trade, other current business, services, and short-term banking
and credit facilities in the ordinary course of business,
(ii) payments due as interest on
loans and as net income from investments,
(iii) remittances for living
expenses of parents, spouse and children residing abroad, and
(iv) expenses in connection with
foreign travel, education and medical care of parents, spouse and children;
(k) Director of Enforcement means
the Director of Enforcement appointed under sub-section (1) of section 36;
(l) export, with its grammatical
variations and cognate expressions, means,
(i) the taking out of India to a
place outside India any goods,
(ii) provision of services from
India to any person outside India;
(m) foreign currency means any
currency other than Indian currency;
(n) foreign exchange means foreign
currency and includes,
(i) deposits, credits and balances
payable in any foreign currency,
(ii) drafts, travellers cheques,
letters of credit or bills of exchange, expressed or drawn in Indian currency
but payable in any foreign currency,
(iii) drafts, travellers cheques,
letters of credit or bills of exchange drawn by banks, institutions or persons
outside India, but payable in Indian currency;
(o) foreign security means any
security, in the form of shares, stocks, bonds, debentures or any other
instrument denominated or expressed in foreign currency and includes securities
expressed in foreign currency, but where redemption or any form of return such
as interest or dividends is payable in Indian currency;
(p) import, with its grammatical
variations and cognate expressions, means bringing into India any goods or
services;
(q) Indian currency means currency
which is expressed or drawn in Indian rupees but does not include special bank
notes and special one rupee notes issued under section 28-A of the Reserve Bank
of India Act, 1934 (2 of 1934);
(r) legal practitioner shall have
the meaning assigned to it in clause (i) of sub-section (1) of section 2 of the
Advocates Act, 1961 (25 of 1961);
(s) Member means a Member of the
Appellate Tribunal and includes the Chairperson thereof;
(t) notify means to notify in the
Official Gazette and the expression notification shall be construed
accordingly;
(u) person includes
(i) an individual,
(ii) a Hindu undivided family,
(iii) a company,
(iv) a firm,
(v) an association of persons or a
body of individuals, whether incorporated or not,
(vi) every artificial juridical
person, not falling within any of the preceding sub-clauses, and
(vii) any agency, office or branch
owned or controlled by such person;
(v) person resident in India means
(i) a person residing in India for
more than one hundred and eighty-two days during the course of the preceding
financial year but does not include
(A) a person who has gone out of
India or who stays outside India, in either case
(a) for or on taking up employment
outside India, or
(b) for carrying on outside India
a business or vocation outside India, or
(c) for any other purpose, in such
circumstances as would indicate his intention to stay outside India for an
uncertain period;
(B) a person who has come to or
stays in India, in either case, otherwise than
(a) for or on taking up employment
in India, or
(b) for carrying on in India a
business or vocation in India, or
(c) for any other purpose, in such
circumstances as would indicate his intention to stay in India for an uncertain
period;
(ii) any person or body corporate
registered or incorporated in India,
(iii) an office, branch or agency
in India owned or controlled by a person resident outside India,
(iv) an office, branch or agency
outside India owned or controlled by a person resident in India;
(w) person resident outside India
means a person who is not resident in India;
(x) prescribed means prescribed by
rules made under this Act;
(y) repatriate to India means
bringing into India the realised foreign exchange and
(i) the selling of such foreign
exchange to an authorised person in India in exchange for rupees; or
(ii) the holding of realised
amount in an account with an authorised person in India to the extent notified
by the Reserve Bank, and includes use of the realised amount for discharge of a
debt or liability denominated in foreign exchange and the expression
repatriation shall be construed accordingly;
(z) Reserve Bank means the Reserve
Bank of India constituted under sub-section (1) of section 3 of the Reserve
Bank of India Act, 1934 (2 of 1934);
(za) security means shares,
stocks, bonds and debentures, Government securities as defined in the Public
Debt Act, 1944 (18 of 1944), savings certificates to which the Government
Savings Certificates Act, 1959 (46 of 1959) applies, deposit receipts in
respect of deposits of securities and units of the Unit Trust of India
established under sub-section (1) of section 3 of the [Unit Trust of India Act, 1963 (52 of 1963)] or
of any mutual fund and includes certificates of title to securities, but does
not include bills of exchange or promissory notes other than Government
promissory notes or any other instruments which may be notified by the Reserve
Bank as security for the purposes of this Act;
(zb) service means service of any
description which is made available to potential users and includes the
provision of facilities in connection with banking, financing, insurance,
medical assistance, legal assistance, chit fund, real estate, transport,
processing, supply of electrical or other energy, boarding or lodging or both,
entertainment, amusement or the purveying of news or other information, but
does not include the rendering of any service free of charge or under a
contract of personal service;
(zc) Special Director (Appeals)
means an officer appointed under section 18;
(zd) specify means to specify by
regulations made under this Act and the expression specified shall be construed
accordingly;
(ze) transfer includes sale,
purchase, exchange, mortgage, pledge, gift, loan or any other form of transfer
of right, title, possession or lien.
CHAPTER II
Regulation And Management Of Foreign Exchange
3. Dealing in foreign
exchange, etc .Save as otherwise provided in this Act, rules or
regulations made thereunder, or with the general or special permission of the
Reserve Bank, no person shall
(a) deal in or transfer any
foreign exchange or foreign security to any person not being an authorised
person;
(b) make any payment to or for the
credit of any person resident outside India in any manner;
(c) receive otherwise through an
authorised person, any payment by order or on behalf of any person resident
outside India in any manner;
Explanation .For the
purpose of this clause, where any person in, or resident in, India receives any
payment by order or on behalf of any person resident outside India through any
other person (including an authorised person) without a corresponding inward
remittance from any place outside India, then, such person shall be deemed to
have received such payment otherwise than through an authorised person;
(d) enter into any financial
transaction in India as consideration for or in association with acquisition or
creation or transfer of a right to acquire, any asset outside India by any
person.
Explanation .For the
purpose of this clause, financial transaction means making any payment to, or
for the credit of any person, or receiving any payment for, by order or on
behalf of any person, or drawing, issuing or negotiating any bill of exchange
or promissory note, or transferring any security or acknowledging any debt.
4. Holding of foreign
exchange, etc .Save as otherwise provided in this Act, no person
resident in India shall acquire, hold, own, possess or transfer any foreign
exchange, foreign security or any immovable property situated outside India.
5. Current account
transactions .Any person may sell or draw foreign exchange to or
from an authorised person if such sale or drawal is a current account
transaction:
Provided that the Central
Government may, in public interest and in consultation with the Reserve Bank,
impose such reasonable restrictions for current account transactions as may be
prescribed.
6. Capital account
transactions .(1) Subject to the provisions of sub-section (2),
any person may sell or draw foreign exchange to or from an authorised person
for a capital account transaction.
(2) The Reserve Bank may,
in consultation with the Central Government, specify
(a) any class or classes of
capital account transactions which are permissible;
(b) the limit up to which foreign
exchange shall be admissible for such transactions:
Provided that the Reserve
Bank shall not impose any restriction on the drawal of foreign exchange for
payments due on account of amortization of loans or for depreciation of direct
investments in the ordinary course of business.
(3) Without prejudice to
the generality of the provisions of sub-section (2), the Reserve Bank may, by
regulations, prohibit, restrict or regulate the following
(a) transfer or issue of any
foreign security by a person resident in India;
(b) transfer or issue of any
security by a person resident outside India;
(c) transfer or issue of any
security or foreign security by any branch, office or agency in India of a
person resident outside India;
(d) any borrowing or lending in
foreign exchange in whatever form or by whatever name called;
(e) any borrowing or lending in
rupees in whatever form or by whatever name called between a person resident in
India and a person resident outside India;
(f) deposits between persons
resident in India and persons resident outside India;
(g) export, import or holding of
currency or currency notes;
(h) transfer of immovable property
outside India, other than a lease not exceeding five years, by a person
resident in India;
(i) acquisition or transfer of
immovable property in India, other than a lease not exceeding five years, by a
person resident outside India;
(j) giving of a guarantee or
surety in respect of any debt, obligation or other liability incurred
(i) by a person resident in India
and owed to a person resident outside India; or
(ii) by a person resident outside
India.
(4) A person resident in
India may hold, own, transfer or invest in foreign currency, foreign security
or any immovable property situated outside India if such currency, security or
property was acquired, held or owned by such person when he was resident
outside India or inherited from a person who was resident outside India.
(5) A person resident
outside India may hold, own, transfer or invest in Indian currency, security or
any immovable property situated in India if such currency, security or property
was acquired, held or owned by such person when he was resident in India or
inherited from a person who was resident in India.
(6) Without prejudice to
the provisions of this section, the Reserve Bank may, by regulation, prohibit,
restrict, or regulate establishment in India of a branch, office or other place
of business by a person resident outside India, for carrying on any activity
relating to such branch, office or other place of business.
(a) furnish to the Reserve Bank or
to such other authority a declaration in such form and in such manner as may be
specified, containing true and correct material particulars, including the
amount representing the full export value or, if the full export value of the
goods is not ascertainable at the time of export, the value which the exporter,
having regard to the prevailing market conditions, expects to receive on the
sale of the goods in a market outside India;
(b) furnish to the Reserve Bank
such other information as may be required by the Reserve Bank for the purpose
of ensuring the realisation of the export proceeds by such exporter.
(2) The Reserve Bank may,
for the purpose of ensuring that the full export value of the goods or such
reduced value of the goods as the Reserve Bank determines, having regard to the
prevailing market conditions, is received without any delay, direct any
exporter to comply with such requirements as it deems fit.
(3) Every exporter of
services shall furnish to the Reserve Bank or to such other authorities a
declaration in such form and in such manner as may be specified, containing the
true and correct material particulars in relation to payment for such services.
8. Realisation and
repatriation of foreign exchange .Save as otherwise
provided in this Act, where any amount of foreign exchange is due or has
accrued to any person resident in India, such person shall take all reasonable
steps to realise and repatriate to India such foreign exchange within such
period and in such manner as may be specified by the Reserve Bank.
9. Exemption from
realisation and repatriation in certain cases .The provisions
of sections 4 and 8 shall not apply to the following, namely:
(a) possession of foreign currency
or foreign coins by any person up to such limit as the Reserve Bank may
specify;
(b) foreign currency account held
or operated by such person or class of persons and the limit up to which the
Reserve Bank may specify;
(c) foreign exchange acquired or
received before the 8th day of July, 1947 or any income arising or accruing
thereon which is held outside India by any person in pursuance of a general or
special permission granted by the Reserve Bank;
(d) foreign exchange held by a
person resident in India up to such limit as the Reserve Bank may specify, if
such foreign exchange was acquired by way of gift or inheritance from a person
referred to in clause (c), including any income arising therefrom;
(e) foreign exchange acquired from
employment, business, trade, vocation, services, honorarium, gifts, inheritance
or any other legitimate means up to such limit as the Reserve Bank may specify;
and
(f) such other receipts in foreign
exchange as the Reserve Bank may specify.
CHAPTER III
Authorised Person
10. Authorised
person .(1) The Reserve Bank may, on an application made
to it in this behalf, authorise any person to be known as authorised person to
deal in foreign exchange or in foreign securities, as an authorised dealer,
money changer or off-shore banking unit or in any other manner as it deems fit.
(2) An authorisation under
this section shall be in writing and shall be subject to the conditions laid
down therein.
(3) An authorisation
granted under sub-section (1) may be revoked by the Reserve Bank at any time if
the Reserve Bank is satisfied that
(a) it is in public interest so to
do; or
(b) the authorised person has
failed to comply with the condition subject to which the authorisation was
granted or has contravened any of the provisions of the Act or any rule,
regulation, notification, direction or order made thereunder:
Provided that no such
authorisation shall be revoked on any ground referred to in clause (b) unless
the authorised person has been given a reasonable opportunity of making a
representation in the matter.
(4) An authorised person
shall, in all his dealings in foreign exchange or foreign security, comply with
such general or special directions or orders as the Reserve Bank may, from time
to time, think fit to give, and, except with the previous permission of the
Reserve Bank, an authorised person shall not engage in any transaction
involving any foreign exchange or foreign security which is not in conformity
with the terms of his authorisation under this section.
(5) An authorised person
shall, before undertaking any transaction in foreign exchange on behalf of any
person, require that person to make such declaration and to give such
information as will reasonably satisfy him that the transaction will not
involve, and is not designed for the purpose of any contravention or evasion of
the provisions of this Act or of any rule, regulation, notification, direction
or order made thereunder, and where the said person refuses to comply with any
such requirement or makes only unsatisfactory compliance therewith, the
authorised person shall refuse in writing to undertake the transaction and
shall, if he has reason to believe that any such contravention or evasion as
aforesaid is contemplated by the person, report the matter to the Reserve Bank.
(6) Any person, other than
an authorised person, who has acquired or purchased foreign exchange for any
purpose mentioned in the declaration made by him to authorised person under
sub-section (5) does not use it for such purpose or does not surrender it to
authorised person within the specified period or uses the foreign exchange so
acquired or purchased for any other purpose for which purchase or acquisition
of foreign exchange is not permissible under the provisions of the Act or the
rules or regulations or direction or order made thereunder shall be deemed to
have committed contravention of the provisions of the Act for the purpose of
this section.
11. Reserve
Banks powers to issue directions to authorised person .(1) The
Reserve Bank may, for the purpose of securing compliance with the provisions of
this Act and of any rules, regulations, notifications or directions made
thereunder, give to the authorised persons any direction in regard to making of
payment or the doing or desist from doing any act relating to foreign exchange
or foreign security.
(2) The Reserve Bank may,
for the purpose of ensuring the compliance with the provisions of this Act or
of any rule, regulation, notification, direction or order made thereunder,
direct any authorised person to furnish such information, in such manner, as it
deems fit.
(3) Where any authorised
person contravenes any direction given by the Reserve Bank under this Act or
fails to file any return as directed by the Reserve Bank, the Reserve Bank may,
after giving reasonable opportunity of being heard, impose on the authorised
person a penalty which may extend to ten thousand rupees and in the case of
continuing contravention with an additional penalty which may extend to two
thousand rupees for every day during which such contravention continues.
12. Power of
Reserve Bank to inspect authorised person .(1) The
Reserve Bank may, at any time, cause an inspection to be made, by any officer
of the Reserve Bank specially authorised in writing by the Reserve Bank in this
behalf, of the business of any authorised person as may appear to it to be
necessary or expedient for the purpose of
(a) verifying the correctness of
any statement, information or particulars furnished to the Reserve Bank;
(b) obtaining any information or
particulars which such authorised person has failed to furnish on being called
upon to do so;
(c) securing compliance with the
provisions of this Act or of any rules, regulations, directions or orders made
thereunder.
(2) It shall be the duty
of every authorised person, and where such person is a company or a firm, every
director, partner or other officer of such company or firm, as the case may be,
to produce to any officer making an inspection under sub-section (1), such
books, accounts and other documents in his custody or power and to furnish any
statement or information relating to the affairs of such person, company or
firm as the said officer may require within such time and in such manner as the
said officer may direct.
CHAPTER IV
Contravention And Penalties
13.
Penalties .(1) If any person contravenes any provision of
this Act, or contravenes any rule, regulation, notification, direction or order
issued in exercise of the powers under this Act, or contravenes any condition
subject to which an authorisation is issued by the Reserve Bank, he shall, upon
adjudication, be liable to a penalty up to thrice the sum involved in such
contravention where such amount is quantifiable, or up to two lakh rupees where
the amount is not quantifiable, and where such contravention is a continuing
one, further penalty which may extend to five thousand rupees for every day
after the first day during which the contravention continues.
(2) Any Adjudicating
Authority adjudging any contravention under sub-section (1), may, if he thinks
fit in addition to any penalty which he may impose for such contravention
direct that any currency, security or any other money or property in respect of
which the contravention has taken place shall be confiscated to the Central
Government and further direct that the foreign exchange holdings, if any, of
the persons committing the contraventions or any part thereof, shall be brought
back into India or shall be retained outside India in accordance with the
directions made in this behalf.
Explanation .For the
purposes of this sub-section, property in respect of which contravention has
taken place, shall include
(a) deposits in a bank, where the
said property is converted into such deposits;
(b) Indian currency, where the
said property is converted into that currency; and
(c) any other property which has
resulted out of the conversion of that property.
14. Enforcement
of the orders of Adjudicating Authority .(1) Subject to
the provisions of sub-section (2) of section 19, if any person fails to make
full payment of the penalty imposed on him under section 13 within a period of
ninety days from the date on which the notice for payment of such penalty is
served on him, he shall be liable to civil imprisonment under this section.
(2) No order for the
arrest and detention in civil prison of a defaulter shall be made unless the
Adjudicating Authority has issued and served a notice upon the defaulter
calling upon him to appear before him on the date specified in the notice and
to show cause why he should not be committed to the civil prison, and unless
the Adjudicating Authority, for reasons in writing, is satisfied
(a) that the defaulter, with the
object or effect of obstructing the recovery of penalty, has after the issue of
notice by the Adjudicating Authority, dishonestly transferred, concealed, or
removed any part of his property, or
(b) that the defaulter has, or has
had since the issuing of notice by the Adjudicating Authority, the means to pay
the arrears or some substantial part thereof and refuses or neglects or has refused
or neglected to pay the same.
(3) Notwithstanding
anything contained in sub-section (1), a warrant for the arrest of the
defaulter may be issued by the Adjudicating Authority if the Adjudicating
Authority is satisfied, by affidavit or otherwise, that with the object or
effect of delaying the execution of the certificate the defaulter is likely to
abscond or leave the local limits of the jurisdiction of the Adjudicating
Authority.
(4) Where appearance is
not made pursuant to a notice issued and served under sub-section (1), the
Adjudicating Authority may issue a warrant for the arrest of the defaulter.
(5) A warrant of arrest
issued by the Adjudicating Authority under sub-section (3) or sub-section (4)
may also be executed by any other Adjudicating Authority within whose
jurisdiction the defaulter may for the time being be found.
(6) Every person arrested
in pursuance of a warrant of arrest under this section shall be brought before
the Adjudicating Authority issuing the warrant as soon as practicable and in
any event within twenty-four hours of his arrest (exclusive of the time
required for the journey):
Provided that if the
defaulter pays the amount entered in the warrant of arrest as due and the costs
of the arrest to the officer arresting him, such officer shall at once release
him.
Explanation .For the
purposes of this sub-section, where the defaulter is a Hindu undivided family,
the karta thereof shall be deemed to be the defaulter.
(7) When a defaulter
appears before the Adjudicating Authority pursuant to a notice to show cause or
is brought before the Adjudicating Authority under this section, the
Adjudicating Authority shall give the defaulter an opportunity showing cause
why he should not be committed to the civil prison.
(8) Pending the conclusion
of the inquiry, the Adjudicating Authority may, in his discretion, order the
defaulter to be detained in the custody of such officer as the Adjudicating
Authority may think fit or release him on his furnishing the security to the
satisfaction of the Adjudicating Authority for his appearance as and when
required.
(9) Upon the conclusion of
the inquiry, the Adjudicating Authority may make an order for the detention of
the defaulter in the civil prison and shall in that event cause him to be
arrested if he is not already under arrest:
Provided that in order to
give a defaulter an opportunity of satisfying the arrears, the Adjudicating
Authority may, before making the order of detention, leave the defaulter in the
custody of the officer arresting him or of any other officer for a specified
period not exceeding fifteen days, or release him on his furnishing security to
the satisfaction of the Adjudicating Authority for his appearance at the
expiration of the specified period if the arrears are not satisfied.
(10) When the Adjudicating
Authority does not make an order of detention under sub-section (9), he shall,
if the defaulter is under arrest, direct his release.
(11) Every person detained
in the civil prison in execution of the certificate may be so detained,
(a) where the certificate is for a
demand of an amount exceeding rupees one crore, up to three years, and
(b) in any other case, up to six
months:
Provided that he shall be
released from such detention on the amount mentioned in the warrant for his
detention being paid to the officer-in-charge of the civil prison.
(12) A defaulter released
from detention under this section shall not, merely by reason of his release,
be discharged from his liability for the arrears, but he shall not be liable to
be arrested under the certificate in execution of which he was detained in the
civil prison.
(13) A detention order may
be executed at any place in India in the manner provided for the execution of
warrant of arrest under the Code of Criminal Procedure, 1973 (2 of 1974).
15. Power to
compound contravention .(1) Any contravention
under section 13 may, on an application made by the person committing such
contravention, be compounded within one hundred and eighty days from the date
of receipt of application by the Director of Enforcement or such other officers
of the Directorate of Enforcement and officers of the Reserve Bank as may be
authorised in this behalf by the Central Government in such manner as may be
prescribed.
(2) Where a contravention
has been compounded under sub-section (1), no proceeding or further proceeding,
as the case may be, shall be initiated or continued, as the case may be,
against the person committing such contravention under that section, in respect
of the contravention so compounded.
CHAPTER V
Adjudication And Appeal
16. Appointment
of Adjudicating Authority .(1) For the purpose of
adjudication under section 13, the Central Government may, by an order
published in the Official Gazette, appoint as many officers of the Central
Government as it may think fit, as the Adjudicating Authorities for holding an
inquiry in the manner prescribed after giving the person alleged to have
committed contravention under section 13, against whom a complaint has been
made under sub-section (3) (hereinafter in this section referred to as the said
person) a reasonable opportunity of being heard for the purpose of imposing any
penalty:
Provided that where the
Adjudicating Authority is of opinion that the said person is likely to abscond
or is likely to evade in any manner, the payment of penalty, if levied, it may
direct the said person to furnish a bond or guarantee for such amount and
subject to such conditions as it may deem fit.
(2) The Central Government
shall, while appointing the Adjudicating Authorities under sub-section (1),
also specify in the order published in the Official Gazette, their respective
jurisdictions.
(3) No Adjudicating
Authority shall hold an enquiry under sub-section (1) except upon a complaint
in writing made by any officer authorised by a general or special order by the
Central Government.
(4) The said person may
appear either in person or take the assistance of a legal practitioner or a
chartered accountant of his choice for presenting his case before the
Adjudicating Authority.
(5) Every Adjudicating
Authority shall have the same powers of a Civil Court which are conferred on
the Appellate Tribunal under sub-section (2) of section 28 and
(a) all proceedings before it
shall be deemed to be judicial proceedings within the meaning of sections 193
and 228 of the Indian Penal Code (45 of 1860);
(b) shall be deemed to be a Civil
Court for the purposes of sections 345 and 346 of the Code of Criminal Procedure,
1973 (2 of 1974).
(6) Every Adjudicating
Authority shall deal with the complaint under sub-section (2) as expeditiously
as possible and endeavour shall be made to dispose of the complaint finally
within one year from the date of receipt of the complaint:
Provided that where the
complaint cannot be disposed of within the said period, the Adjudicating
Authority shall record periodically the reasons in writing for not disposing of
the complaint within the said period.
17. Appeal to
Special Director (Appeals) .(1) The Central
Government shall, by notification, appoint one or more Special Directors
(Appeals) to hear appeals against the orders of the Adjudicating Authorities
under this section and shall also specify in the said notification the matter
and places in relation to which the Special Director (Appeals) may exercise
jurisdiction.
(2) Any person aggrieved
by an order made by the Adjudicating Authority, being an Assistant Director of
Enforcement or a Deputy Director of Enforcement, may prefer an appeal to the
Special Director (Appeals).
(3) Every appeal under
sub-section (1) shall be filed within forty-five days from the date on which
the copy of the order made by the Adjudicating Authority is received by the
aggrieved person and it shall be in such form, verified in such manner and be
accompanied by such fee as may be prescribed:
Provided that the Special
Director (Appeals) may entertain an appeal after the expiry of the said period
of forty-five days, if he is satisfied that there was sufficient cause for not
filing it within that period.
(4) On receipt of an
appeal under sub-section (1), the Special Director (Appeals) may after giving
the parties to the appeal an opportunity of being heard, pass such order
thereon as he thinks fit, confirming, modifying or setting aside the order
appealed against.
(5) The Special Director
(Appeals) shall send a copy of every order made by him to the parties to appeal
and to the concerned Adjudicating Authority.
(6) The Special Director
(Appeals) shall have the same powers of a Civil Court which are conferred on
the Appellate Tribunal under sub-section (2) of section 28 and
(a) all proceedings before him
shall be deemed to be judicial proceedings within the meaning of sections 193
and 228 of the Indian Penal Code (45 of 1860);
(b) shall be deemed to be a Civil
Court for the purposes of sections 345 and 346 of the Code of Criminal Procedure,
1973 (2 of 1974).
18.
Establishment of Appellate Tribunal .The Central
Government shall, by notification, establish an Appellate Tribunal to be known
as the Appellate Tribunal for Foreign Exchange to hear appeals against the
orders of the Adjudicating Authorities and the Special Director (Appeals) under
this Act.
19. Appeal to
Appellate Tribunal .(1) Save as provided in
sub-section (2), the Central Government or any person aggrieved by an order
made by an Adjudicating Authority, other than those referred to in sub-section
(1) of section 17, or the Special Director (Appeals), may prefer an appeal to
the Appellate Tribunal:
Provided that any person
appealing against the order of the Adjudicating Authority or the Special
Director (Appeals) levying any penalty, shall while filing the appeal, deposit
the amount of such penalty with such authority as may be notified by the
Central Government:
Provided further that
where in any particular case, the Appellate Tribunal is of the opinion that the
deposit of such penalty would cause undue hardship to such person, the
Appellate Tribunal may dispense with such deposit subject to such conditions as
it may deem fit to impose so as to safeguard the realisation of penalty.
(2) Every appeal under
sub-section (1) shall be filed within a period of forty-five days from the date
on which a copy of the order made by the Adjudicating Authority or the Special
Director (Appeals) is received by the aggrieved person or by the Central
Government and it shall be in such form, verified in such manner and be
accompanied by such fee as may be prescribed:
Provided that the
Appellate Tribunal may entertain an appeal after the expiry of the said period
of forty-five days if it is satisfied that there was sufficient cause for not
filing it within that period.
(3) On receipt of an
appeal under sub-section (1), the Appellate Tribunal may, after giving the
parties to the appeal an opportunity of being heard, pass such orders thereon
as it thinks fit, confirming, modifying or setting aside the order appealed
against.
(4) The Appellate Tribunal
shall send a copy of every order made by it to the parties to the appeal and to
the concerned Adjudicating Authority or the Special Director (Appeals), as the
case may be.
(5) The appeal filed
before the Appellate Tribunal under sub-section (1) shall be dealt with by it
as expeditiously as possible and endeavour shall be made by it to dispose of
the appeal finally within one hundred and eighty days from the date of receipt
of the appeal:
Provided that where any
appeal could not be disposed of within the said period of one hundred and
eighty days, the Appellate Tribunal shall record its reasons in writing for not
disposing of the appeal within the said period.
(6) The Appellate Tribunal
may, for the purpose of examining the legality, propriety or correctness of any
order made by the Adjudicating Authority under section 16 in relation to any
proceeding, on its own motion or otherwise, call for the records of such
proceedings and make such order in the case as it thinks fit.
20. Composition
of Appellate Tribunal .(1) The Appellate
Tribunal shall consist of a Chairperson and such number of Members as the
Central Government may deem fit.
(2) Subject to the
provisions of this Act,
(a) the jurisdiction of the Appellate
Tribunal may be exercised by Benches thereof;
(b) a Bench may be constituted by
the Chairperson with one or more Members as the Chairperson may deem fit;
(c) the Benches of the Appellate
Tribunal shall ordinarily sit at New Delhi and at such other places as the
Central Government may, in consultation with the Chairperson, notify;
(d) the Central Government shall
notify the areas in relation to which each Bench of the Appellate Tribunal may
exercise jurisdiction.
(3) Notwithstanding
anything contained in sub-section (2), the Chairperson may transfer a Member
from one Bench to another Bench.
(4) If at any stage of the
hearing of any case or matter it appears to the Chairperson or a Member that
the case of matter is of such a nature that it ought to be heard by a Bench
consisting of two Members, the case or matter may be transferred by the
Chairperson or, as the case may be, referred to him for transfer, to such Bench
as the Chairperson may deem fit.
21.
Qualifications for appointment of Chairperson, Member and Special Director
(Appeals) .(1) A person shall not be qualified for
appointment as the Chairperson or a Member unless he
(a) in the case of Chairperson, is
or has been, or is qualified to be, a Judge of a High Court; and
(b) in the case of a Member, is or
has been, or is qualified to be, a District Judge.
(2) A person shall not be
qualified for appointment as a Special Director (Appeals) unless he
(a) has been a member of the
Indian Legal Service and has held a post in Grade I of that Service; or
(b) has been a member of the
Indian Revenue Service and has held a post equivalent to a Joint Secretary to
the Government of India.
22. Term of
office .The Chairperson and every other Member shall hold
office as such for a term of five years from the date on which he enters upon
his office:
Provided that no
Chairperson or other Member shall hold office as such after he has attained,
(a) in the case of the
Chairperson, the age of sixty-five years;
(b) in the case of any other
Member, the age of sixty-two years.
23. Terms and
conditions of service .The salary and allowances
payable to and the other terms and conditions of service of the Chairperson,
other Members and the Special Director (Appeals) shall be such as may be
prescribed:
Provided that neither the
salary and allowances nor the other terms and conditions of service of the
Chairperson or a Member shall be varied to his disadvantage after appointment.
24.
Vacancies .If, for reason other than temporary absence, any
vacancy occurs in the office of the Chairperson or a Member, the Central
Government shall appoint another person in accordance with the provisions of
this Act to fill the vacancy and the proceedings may be continued before the
Appellate Tribunal from the stage at which the vacancy is filled.
25. Resignation
and removal .(1) The Chairperson or a Member may, by notice in
writing under his hand addressed to the Central Government, resign his office:
Provided that the
Chairperson or a Member shall, unless he is permitted by the Central Government
to relinquish his office sooner, continue to hold office until the expiry of
three months from the date of receipt of such notice or until a person duly
appointed as his successor enters upon his office or until the expiry of term
of office, whichever is the earliest.
(2) The Chairperson or a
Member shall not be removed from his office except by an order by the Central
Government on the ground of proved misbehaviour or incapacity after an inquiry
made by such person as the President may appoint for this purpose in which the
Chairperson or a Member concerned has been informed of the charges against him
and given a reasonable opportunity of being heard in respect of such charges.
26. Member to
act as Chairperson in certain circumstances .(1) In the
event of the occurrence of any vacancy in the office of the Chairperson by
reason of his death, resignation or otherwise, the senior-most Member shall act
as the Chairperson until the date on which a new Chairperson, appointed in
accordance with the provisions of this Act to fill such vacancy, enters upon
his office.
(2) When the Chairperson
is unable to discharge his functions owing to absence, illness or any other
cause, the senior-most Member shall discharge the functions of the Chairperson
until the date on which the Chairperson resumes his duties.
27. Staff of
Appellate Tribunal and Special Director (Appeals) .(1) The
Central Government shall provide the Appellate Tribunal and the Special
Director (Appeals) with such officers and employees as it may deem fit.
(2) The officers and
employees of the Appellate Tribunal and office of the Special Director
(Appeals) shall discharge their functions under the general superintendence of
the Chairperson and the Special Director (Appeals), as the case may be.
(3) The salaries and
allowances and other conditions of service of the officers and employees of the
Appellate Tribunal and office of the Special Director (Appeals) shall be such
as may be prescribed.
28. Procedure
and powers of Appellate Tribunal and Special Director (Appeals) .(1) The
Appellate Tribunal and the Special Director (Appeals) shall not be bound by the
procedure laid down by the Code of Civil Procedure, 1908 (5 of 1908), but shall
be guided by the principles of natural justice and, subject to the other
provisions of this Act, the Appellate Tribunal and the Special Director
(Appeals) shall have powers to regulate its own procedure.
(2) The Appellate Tribunal
and the Special Director (Appeals) shall have, for the purposes of discharging
its functions under this Act, the same powers as are vested in a Civil Court
under the Code of Civil Procedure, 1908 (5 of 1908) while trying a suit, in
respect of the following matters, namely:
(a) summoning and enforcing the
attendance of any person and examining him on oath;
(b) requiring the discovery and
production of documents;
(c) receiving evidence on
affidavits;
(d) subject to the provisions of
sections 123 and 124 of the Indian Evidence Act, 1872 (1 of 1872),
requisitioning any public record or document or copy of such record or document
from any office;
(e) issuing commissions for the
examination of witnesses or documents;
(f) reviewing its decisions;
(g) dismissing a representation of
default or deciding it ex parte;
(h) setting aside any order of
dismissal of any representation for default or any order passed by it ex
parte; and
(i) any other matter which may be
prescribed by the Central Government.
(3) An order made by the
Appellate Tribunal or the Special Director (Appeals) under this Act shall be
executable by the Appellate Tribunal or the Special Director (Appeals) as a
decree of Civil Court and, for this purpose, the Appellate Tribunal and the
Special Director (Appeals) shall have all the powers of a Civil Court.
(4) Notwithstanding
anything contained in sub-section (3), the Appellate Tribunal or the Special
Director (Appeals) may transmit any order made by it to a Civil Court having
local jurisdiction and such Civil Court shall execute the order as if it were a
decree made by that Court.
(5) All proceedings before
the Appellate Tribunal and the Special Director (Appeals) shall be deemed to be
judicial proceedings within the meaning of sections 193 and 228 of the Indian
Penal Code (45 of 1860) and the Appellate Tribunal shall be deemed to be a
Civil Court for the purposes of sections 345 and 346 of the Code of Criminal
Procedure, 1973 (2 of 1974).
29.
Distribution of business amongst Benches .Where Benches
are constituted, the Chairperson may, from time to time, by notification, make
provisions as to the distribution of the business of the Appellate Tribunal
amongst the Benches and also provide for the matters which may be dealt with by
each Bench.
30. Power of
Chairperson to transfer cases .On the application of any
of the parties and after notice to the parties, and after hearing such of them
as he may desire to be heard, or on his own motion without such notice, the
Chairperson may transfer any case pending before one Bench, for disposal, to
any other Bench.
31. Decision to
be by majority .If the Members of a Bench consisting of two
Members differ in opinion on any point, they shall state the point or points on
which they differ, and make a reference to the Chairperson who shall either
hear the point or points himself or refer the case for hearing on such point or
points by one or more of the other Members of the Appellate Tribunal and such
point or points shall be decided according to the opinion of the majority of
the Members of the Appellate Tribunal who have heard the case, including those
who first heard it.
32. Right of
appellant to take assistance of legal practitioner or chartered accountant and
of Government, to appoint presenting officers .(1) A person
preferring an appeal to the Appellate Tribunal or the Special Director
(Appeals) under this Act may either appear in person or take the assistance of
a legal practitioner or a chartered accountant of his choice to present his
case before the Appellate Tribunal or the Special Director (Appeals), as the
case may be.
(2) The Central Government
may authorise one or more legal practitioners or chartered accountants or any
of its officers to act as presenting officers and every person so authorised
may present the case with respect to any appeal before the Appellate Tribunal
or the Special Director (Appeals), as the case may be.
33. Members,
etc., to be public servants .The Chairperson, Members
and other officers and employees of the Appellate Tribunal, the Special
Director (Appeals) and the Adjudicating Authority shall be deemed to be public
servants within the meaning of section 21 of the Indian Penal Code (45 of
1860).
34. Civil Court
not to have jurisdiction .No Civil Court shall have
jurisdiction to entertain any suit or proceeding in respect of any matter which
an Adjudicating Authority or the Appellate Tribunal or the Special Director
(Appeals) is empowered by or under this Act to determine and no injunction
shall be granted by any Court or other authority in respect of any action taken
or to be taken in pursuance of any power conferred by or under this Act.
35. Appeal to
High Court .Any person aggrieved by any decision or order of
the Appellate Tribunal may file an appeal to the High Court within sixty days
from the date of communication of the decision or order of the Appellate
Tribunal to him on any question of law arising out of such order:
Provided that the High
Court may, if it is satisfied that the appellant was prevented by sufficient
cause from filing the appeal within the said period, allow it to be filed
within a further period not exceeding sixty days.
Explanation .In this
section High Court means
(a) the High Court within the
jurisdiction of which the aggrieved party ordinarily resides or carries on
business or personally works for gain; and
(b) where the Central Government
is the aggrieved party, the High Court within the jurisdiction of which the
respondent, or in a case where there are more than one respondent, any of the
respondents, ordinarily resides or carries on business or personally works for
gain.
CHAPTER VI
Directorate Of Enforcement
36. Directorate
of Enforcement .(1) The Central Government shall establish a
Directorate of Enforcement with a Director and such other officers or class of
officers as it thinks fit, who shall be called officers of Enforcement, for the
purposes of this Act.
(2) Without prejudice to
the provisions of sub-section (1), the Central Government may authorise the
Director of Enforcement or an Additional Director of Enforcement or a Special
Director of Enforcement or a Deputy Director of Enforcement to appoint Officers
of Enforcement below the rank of an Assistant Director of Enforcement.
(3) Subject to such
conditions and limitations as the Central Government may impose, an Officer of
Enforcement may exercise the powers and discharge the duties conferred or
imposed on him under this Act.
37. Power of
search, seizure, etc .(1) The Director of
Enforcement and other officers of Enforcement, not below the rank of an
Assistant Director, shall take up for investigation the contravention referred
to in section 13.
(2) Without prejudice to
the provisions of sub-section (1), the Central Government may also, by
notification, authorise any officer or class of officers in the Central
Government, State Government or the Reserve Bank, not below the rank of an
Under Secretary to the Government of India to investigate any contravention
referred to in section 13.
(3) The officers referred
to in sub-section (1) shall exercise the like powers which are conferred on
income-tax authorities under the Income-tax Act, 1961 (43 of 1961) and shall
exercise such powers, subject to such limitations laid down under that Act.
38. Empowering
other officers .(1) The Central Government may, by order and
subject to such conditions and limitations as it thinks fit to impose,
authorise any officer of customs or any central excise officer or any police
officer or any other officer of the Central Government or a State Government to
exercise such of the powers and discharge such of the duties of the Director of
Enforcement or any other officer of Enforcement under this Act as may be stated
in the order.
(2) The officers referred
to in sub-section (1) shall exercise the like powers which are conferred on the
income-tax authorities under the Income-tax Act, 1961 (43 of 1961), subject to
such conditions and limitations as the Central Government may impose.
CHAPTER VII
Miscellaneous
(i) is produced or furnished by
any person or has been seized from the custody or control of any person, in
either case, under this Act or under any other law; or
(ii) has been received from any
place outside India (duly authenticated by such authority or person and in such
manner as may be prescribed) in the course of investigation of any
contravention under this Act alleged to have been committed by any person, and
such document is tendered in any proceeding under this Act in evidence against
him, or against him and any other person who is proceeded against jointly with
him, the Court or the Adjudicating Authority, as the case may be, shall
(a) presume, unless the contrary
is proved, that the signature and every other part of such document which
purports to be in the handwriting of any particular person or which the Court
may reasonably assume to have been signed by, or to be in the handwriting of,
any particular person, is in that persons handwriting, and in the case of a
document executed or attested, that it was executed or attested by the person
by whom it purports to have been so executed or attested;
(b) admit the document in evidence
notwithstanding that it is not duly stamped, if such document is otherwise
admissible in evidence;
(c) in a case falling under clause
(i), also presume, unless the contrary is proved, the truth of the contents of
such document.
40. Suspension
of operation of this Act .(1) If the Central
Government is satisfied that circumstances have arisen rendering it necessary
that any permission granted or restriction imposed by this Act should cease to
be granted or imposed, or if it considers necessary or expedient so to do in
public interest, the Central Government may, by notification, suspend or relax
to such extent either indefinitely or for such period as may be notified, the
operation of all or any of the provisions of this Act.
(2) Where the operation of
any provision of this Act has under sub-section (1) been suspended or relaxed
indefinitely, such suspension or relaxation may, at any time while this Act
remains in force, be removed by the Central Government by notification.
(3) Every notification
issued under this section shall be laid, as soon as may be after it is issued,
before each House of Parliament, while it is in session, for a total period of
thirty days which may be comprised in one session or in two or more successive
sessions, and if, before the expiry of the session immediately following the
session or the successive sessions aforesaid, both Houses agree in making any
modification in the notification or both Houses agree that the notification
should not be issued, the notification shall thereafter have effect only in
such modified form or be of no effect, as the case may be; so, however, that
any such modification or annulment shall be without prejudice to the validity
of anything previously done under that notification.
41. Power of
Central Government to give directions .For the
purposes of this Act, the Central Government may, from time to time, give to
the Reserve Bank such general or special directions as it thinks fit, and the
Reserve Bank shall, in the discharge of its functions under this Act, comply
with any such directions.
42.
Contravention by companies .(1) Where a person
committing a contravention of any of the provisions of this Act or of any rule,
direction or order made thereunder is a company, every person who, at the time
the contravention was committed, was in charge of, and was responsible to, the
company for the conduct of the business of the company as well as the company,
shall be deemed to be guilty of the contravention and shall be liable to be
proceeded against and punished accordingly:
Provided that nothing
contained in this sub-section shall render any such person liable to punishment
if he proves that the contravention took place without his knowledge or that he
exercised all due diligence to prevent such contravention.
(2) Notwithstanding
anything contained in sub-section (1), where a contravention of any of the
provisions of this Act or of any rule, direction or order made thereunder has
been committed by a company and it is proved that the contravention has taken
place with the consent or connivance of, or is attributable to any neglect on
the part of, any director, manager, secretary or other officer of the company,
such director, manager, secretary or other officer shall also be deemed to be
guilty of the contravention and shall be liable to be proceeded against and
punished accordingly.
Explanation .For the
purposes of this section
(i) company means any body
corporate and includes a firm or other association of individuals; and
(ii) director, in relation to a
firm, means a partner in the firm.
43. Death or
insolvency in certain cases .Any right, obligation,
liability, proceeding or appeal arising in relation to the provisions of
section 13 shall not abate by reason of death or insolvency of the person
liable under that section and upon such death or insolvency such rights and
obligations shall devolve on the legal representative of such person or the
official receiver or the official assignee, as the case may be:
Provided that a legal
representative of the deceased shall be liable only to the extent of the
inheritance or estate of the deceased.
44. Bar of
legal proceedings .No suit, prosecution or
other legal proceeding shall lie against the Central Government or the Reserve
Bank or any officer of that Government or of the Reserve Bank or any other
person exercising any power or discharging any functions or performing any
duties under this Act, for anything in good faith done or intended to be done
under this Act or any rule, regulation, notification, direction or order made
thereunder.
45. Removal of
difficulties .(1) If any difficulty arises in giving effect to
the provisions of this Act, the Central Government may, by order, do anything
not inconsistent with the provisions of this Act for the purpose of removing
the difficulty:
Provided that no such
order shall be made under this section after the expiry of two years from the
commencement of this Act.
(2) Every order made under
this section shall be laid, as soon as may be after it is made, before each
House of Parliament.
46. Power to
make rules .(1) The Central Government may, by notification,
make rules to carry out the provisions of this Act.
(2) Without prejudice to
the generality of the foregoing power, such rules may provide for,
(a) the imposition of reasonable
restrictions on current account transactions under section 5;
(b) the manner in which the
contravention may be compounded under sub-section (1) of section 15;
(c) the manner of holding an
inquiry by the Adjudicating Authority under sub-section (1) of section 16;
(d) the form of appeal and fee for
filing such appeal under sections 17 and 19;
(e) the salary and allowances
payable to and the other terms and conditions of service of the Chairperson and
other Members of the Appellate Tribunal and the Special Director (Appeals)
under section 23;
(f) the salaries and allowances
and other conditions of service of the officers and employees of the Appellate
Tribunal and the office of the Special Director (Appeals) under sub-section (3)
of section 27;
(g) the additional matters in
respect of which the Appellate Tribunal and the Special Director (Appeals) may
exercise the powers of a Civil Court under clause (i) of sub-section (2) of
section 28;
(h) the authority or person and
the manner in which any document may be authenticated under clause (ii) of
section 39; and
(i) any other matter which is
required to be, or may be, prescribed.
47. Power to
make regulations .(1) The Reserve Bank may,
by notification, make regulations to carry out the provisions of this Act and
the rules made thereunder.
(2) Without prejudice to
the generality of the foregoing power, such regulations may provide for,
(a) the permissible classes of
capital account transactions, the limits of admissibility of foreign exchange
for such transactions, and the prohibition, restriction or regulation of
certain capital account transactions under section 6;
(b) the manner and the form in
which the declaration is to be furnished under clause (a) of sub-section (1) of
section 7;
(c) the period within which and
the manner of repatriation of foreign exchange under section 8;
(d) the limit up to which any
person may possess foreign currency or foreign coins under clause (a) of
section 9;
(e) the class of persons and the
limit up to which foreign currency account may be held or operated under clause
(b) of section 9;
(f) the limit up to which foreign
exchange acquired may be exempted under clause (d) of section 9;
(g) the limit up to which foreign
exchange acquired may be retained under clause (e) of section 9;
() any other matter which is
required to be, or may be, specified.
48. Rules and
regulations to be laid before Parliament .Every rule and
regulation made under this Act shall be laid, as soon as may be after it is
made, before each House of Parliament, while it is in session, for a total
period of thirty days which may be comprised in one session or in two or more
successive sessions, and if, before the expiry of the session immediately
following the session or the successive sessions aforesaid, both Houses agree
in making any modification in the rule or regulation, or both Houses agree that
the rule or regulation should not be made, the rule or regulation shall
thereafter have effect only in such modified form or be of no effect, as the
case may be; so, however, that any such modification or annulment shall be without
prejudice to the validity of anything previously done under that rule or
regulation.
49. Repeal and
saving .(1) The Foreign Exchange Regulation Act, 1973 (46
of 1973) is hereby repealed and the Appellate Board constituted under
sub-section (1) of section 52 of the said Act (hereinafter referred to as the
repealed Act) shall stand dissolved.
(2) On the dissolution of
the said Appellate Board, the person appointed as Chairman of the Appellate
Board and every other person appointed as Member and holding office as such
immediately before such date shall vacate their respective offices and no such
Chairman or other person shall be entitled to claim any compensation for the
premature termination of the term of his office or of any contract of service.
(3) Notwithstanding
anything contained in any other law for the time being in force, no Court shall
take cognizance of an offence under the repealed Act and no adjudicating
officer shall take notice of any contravention under section 51 of the repealed
Act after the expiry of a period of two years from the date of the commencement
of this Act.
(4) Subject to the
provisions of sub-section (3) all offences committed under the repealed Act
shall continue to be governed by the provisions of the repealed Act as if that
Act had not been repealed.
(5) Notwithstanding such
repeal,
(a) anything done or any action
taken or purported to have been done or taken including any rule, notification,
inspection, order or notice made or issued or any appointment, confirmation or
declaration made or any licence, permission, authorisation or exemption granted
or any document or instrument executed or any direction given under the Act
hereby repealed shall, insofar as it is not inconsistent with the provisions of
this Act, be deemed to have been done or taken under the corresponding
provisions of this Act;
(b) any appeal preferred to the
Appellate Board under sub-section (2) of section 52 of the repealed Act but not
disposed of before the commencement of this Act shall stand transferred to and
shall be disposed of by the Appellate Tribunal constituted under this Act;
(c) every appeal from any decision
or order of the Appellate Board under sub-section (3) or sub-section (4) of
section 52 of the repealed Act shall, if not filed before the commencement of
this Act, be filed before the High Court within a period of sixty days of such
commencement:
Provided that the High
Court may entertain such appeal after the expiry of the said period of sixty
days if it is satisfied that the appellant was prevented by sufficient cause
from filing the appeal within the said period.
(6) Save as otherwise
provided in sub-section (3), the mention of particular matters in sub-sections
(2), (4) and (5) shall not be held to prejudice or affect the general
application of section 6 of the General Clauses Act, 1897 (10 of 1897), with
regard to the effect of repeal.
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