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Unit 3: FEMA Act, 1999

of application. Further, any contravention so compounded, relieves the accused person from Notes
further proceedings for that contravention.

Task Analyze various regulations of foreign exchange.

Note With effect from June 1,2000, Reserve Bank has permitted transactions entered
into in Indian rupees by or with:
(i) a person who is a citizen of India, Nepal or Bhutan resident in Nepal or Bhutan;
(ii) a branch situated in Nepal or Bhutan of any business carried on by a company or a
corporation incorporated under any law in force in India, Nepal or Bhutan;
(iii) a branch situated in Nepal or Bhutan of any business carried on as a partnership fi rm
or otherwise, by a citizen of India, Nepal or Bhutan.
Notification No. GSR 404 (E) dated 3.5.2000

With effect from June 1, 2000, Reserve Bank has permitted any person from any Post Offi ce,
in accordance with any law or rules made thereunder for the time being in force, any
foreign exchange in the form of postal orders or money orders.

Notification No. GSR 405 (E) dated 3.5.2000
3.5 Adjudication and Appeal [Secs.16-35]

Appointment of Adjudicating Authority

Sec.16 empowers the Central Government to appoint by notification in the Official Gazette as many

Adjudicating Authorities as it may think fit for holding enquiries, for the purposes of Sec.13. The

Central Government is, however, under obligation to specify the jurisdiction of the Adjudicating
Authority. The Adjudicating Authority cannot hold any enquiry, unless a complaint is made in
writing by an officer authorised by a general or special order of the central government.

The person alleged to have committed the contravention will be given a reasonable opportunity
of being heard before imposing any penalty under Sec.13. The person against whom a complaint
is made is entitled to present his case before the Adjudicating Authority himself or take the
assistance of a legal practitioner or Chartered Accountant.
The Adjudicating Authority has been entrusted with powers of a civil court and all proceedings
before it shall be deemed to be judicial proceedings within the meaning of Sec.193 and Sec.229 of
the Indian Penal Code.

Appeal to Special Director (Appeals)

Sec.17 empowers the Central Government to appoint one or more special Directors to hear the
appeals against the orders of the Adjudicating Authorities. The Central Government while
issuing notification to this effect shall also specify the matter and places over which the Special

Director (Appeals) have jurisdiction.

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