SAFEMA Tribunal Confirms ₹50 Lakh ED Attachment In Syndicate Bank Bribery Case Linked To Former CMD

The Appellate Tribunal under SAFEMA on 12 March held that the provisional attachment of Rs. 50 lakh recovered from the close relatives of Syndicate Bank's former CMD constitutes proceeds of crime under the Prevention of Money Laundering Act (PMLA). A Bench comprising Members Balesh Kumar and Rajesh Malhotra allowed the appeal filed by the Directorate of Enforcement (ED), setting aside the order of the Adjudicating Authority, which had earlier declined to confirm the provisional attachment of...

Damages Awarded By Foreign Court Cannot Be Subject To FEMA, RBI Ceiling: Delhi High Court

The Delhi High Court on Monday held that damages awarded by a competent foreign court for breach of contract cannot be subjected to ceilings prescribed under the Foreign Exchange Management Act or RBI guidelines. “In my considered view, the amounts awarded by a competent Court, whether Indian or foreign, towards damages for breach of contract, cannot be subject to ceilings prescribed under FEMA and/or RBI directions/circulars,” Justice Amit Bansal observed while allowing execution of an English...

SAFEMA Tribunal Sets Aside Forfeiture Of Property Bought Nine Years Before Smuggling Offence

A property purchased nine years before a smuggling offence cannot be forfeited on mere assumption that it was funded through illegal earnings, the Appellate Tribunal under SAFEMA has held, setting aside a 2023 forfeiture order against a Karaikal resident. The tribunal held that the competent authority failed to establish any “link or nexus” between the 1990 purchase of the property and a 1999 smuggling case. Member V. Anandarajan observed that the authority had acted on assumption without...

FEMA Can Be Invoked For EEZ Exports With Foreign Exchange Implications: SAFEMA Tribunal, New Delhi

The Appellate Tribunal under SAFEMA at New Delhi has held that, in the facts of the case, activities carried out in India's Exclusive Economic Zone (EEZ) that have foreign exchange implications can be proceeded against under the Foreign Exchange Management Act (FEMA), even in the absence of a specific notification extending FEMA to the EEZ. Rejecting the argument that FEMA could not apply without such a notification, the tribunal held: “We do not find it necessary in the set of facts and...

RBI Brings Exports, Imports and Merchanting Trade Under Single FEMA Framework

The Reserve Bank of India has notified a new set of foreign exchange rules that bring exports, imports, and merchanting trade transactions under a single regulatory framework for the first time.The Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 replace the 2015 rules, which were limited to exports of goods and services.The regulations were notified on January 13, 2026, under the Foreign Exchange Management Act, 1999. They will come into force on October...

Legal Heirs Have Right To Seek Impleadment In Pending Appeals Under FEMA: Delhi High Court

The Delhi High Court has observed that legal heirs have right to seek Impleadment after the appellant's death in pending appeals under the Foreign Exchange Regulation Act, 1973, and the Foreign Exchange Management Act, 1999. “…the right to seek impleadment of legal heirs in such circumstances is not one that arises dehors the statute; rather, it is one that is expressly recognised and preserved within the statutory framework of both FERA, 1973 and FEMA, 1999,” Justice Swarana Kanta Sharma...

FERA | ED Can Seize Indian Currency Intended For Illegal Purchase Of Foreign Exchange: Delhi High Court

The Delhi High Court has made it clear that Indian currency can be seized by the Enforcement Directorate under provisions of the erstwhile Foreign Exchange Regulation Act, 1973, if the same is intended to be used for illegal purchase of foreign exchange.FERA, 1973 was enacted to regulate the inflow and outflow of foreign exchange in India, and to prevent hoarding of foreign currency. The statute has since been replaced by the Foreign Exchange Management Act, 1999, which came into effect in June...

Enforcement Officer Competent To File Complaint Under Repealed Provisions Of FERA During Sunset Period Of 2 Years After Enforcement Of FEMA: Supreme Court

The Supreme Court has ruled that the Enforcement Officer appointed and authorised under the repealed provisions of the Foreign Exchange Regulation Act, 1973 (FERA), will continue to have the authority and competence to file a complaint for the offences punishable under the Act before the expiry of the sunset period of 2 years provided under Section 49(3) of the Foreign Exchange Management Act, 1999 (FEMA).The bench of Justices Abhay S. Oka and Sanjay Karol was hearing an appeal against the order...

Proceedings Should Be Initiated Within Reasonable Period When No Period Is Specified In Statute: Supreme Court

The Supreme Court observed that the authorities are required to initiate proceeding within a reasonable period when no such period has been provided in the Statute.The bench comprising Justices BR Gavai and PS Narasimha quashed show cause notices issued in the year 2002 against some banks to explain certain transactions of the year 1992-­1993.In this case, proceedings were initiated under FERA against Citi Bank, Bank of America and Standard Chartered Bank. The Delhi High Court, allowing...

[Section 68 FERA] Liability For Offence Depends On Role One Plays In Company Affairs And Not On Mere Designation Or Status: SC [Read Judgment]

The Supreme Court has held that, for proceeding against a Director of a company for contravention of provisions of Foreign Exchange Regulation Act, 1973, the necessary ingredient for proceeding shall be that at the time offence was committed, the Director was in charge of and was responsible to the company for the conduct of the business of the company. The liability to be proceeded with for offence under Section 68 of FERA, 1973 depends on the role one plays in the affairs of the...