Foreign Exchange Management Act,1999 |Procedure for Adjudication |Appeal to SD |Appeal to AT |Part 6

Описание: Corporate and Allied Laws: CA;

Foreign Exchange Management Act 1999 | Procedure for Adjudication | Part 6;

Foreign Exchange Management Act (FEMA), 1999

Procedure for Adjudication (Section 16) 00:00:34 - 00:13:18

Adjudicating Authority (AA) - Purpose of Appointment and Duties
-AA shall be appointed by the the Central Government by issuing a notification in the Official Gazette.
-AA is appointed to adjudicate and impose penalties.
-AA shall endeavor to dispose of the complaint within 1 year.
-AA shall give a reasonable opportunity of being heard of the accused person.

Cognizance of Offenses (Section 16)
-AA shall not take cognizance of any contravention under FEMA except upon a complaint in writing made by any officer authorized by the central government.

Issue of show cause notice
-Purpose is to give an opportunity to the accused to show cause as to why an inquiry should not be held against him. He is allowed a time of 10 days.

Procedure for Holding Inquiry - Illustration
-AA shall consider the reply made by the accused person.
-AA shall fix a date for the hearing, if it is of the opinion that an inquiry should be held.
-Hearing shall be held.
Following provisions shall apply to the hearing.
-Appear in person or assistance by legal practitioner
-Explanation of alleged contravention
-Opportunity to produce the documents or evidence
-Hearing may be adjourned from time to time
-AA may summon and enforce attendance
-AA may also proceed ex parte

Order levying Penalty
-If AA is satisfied that contravention of act has been committed, it shall impose penalty and specify the nature of contravention committed and the reason for the decision.

Imprisonment for non payment of penalty (Section 14)
-The penalty must be paid within 90 days
-If default is made in payment of penalty, the accused shall be liable to civil imprisonment
-The term for imprisonment shall be up to 3 years, if penalty exceeds Rs. 1 crore and up to 6 months, in any other case.
-The defaulter shall be released if the penalty is paid after imprisonment

Appeal to SD (Appeals) (Section 17)
Appeal to SD (Appeals) may be made against the order of AA, if AA is Assistant Director of Enforcement or Deputy Director of Enforcement
-The appeal shall be filed within 45 days

Appeal to AT (Section 19)
Illustration 00:13:30 - 00:18:06
-Appeal to AT may be made against the order of SD (Appeals)
-Appeal to AT may be made against the order of AA, if AA is other than - Assistant Director of Enforcement; or Deputy Director of Enforcement
-The appeal shall be filed within 45 days
-The penalty determined by the AA/SD(Appeal) shall be deposited
However AT has the discretion to dispense with the payment of penalty, if it is satisfied that deposit of penalty would cause undue hardship on the accused person

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