Madras High Court Dismisses Flipkart Founders' Review Plea Against FEMA Proceedings

The Madras High Court has dismissed review petitions filed by Flipkart co-founders Sachin Bansal and Binny Bansal and three investors seeking reconsideration of an earlier order that declined to interfere with Enforcement Directorate proceedings under the Foreign Exchange Management Act (FEMA). Justice S Sounthar held that the petitioners have an effective statutory remedy under FEMA and that the issues raised by them must first be agitated before the adjudicating authority. “In view of the...

Delhi High Court Sets Aside FEMA Confiscation For Lack Of Reasons, Upholds Penalty

The Delhi High Court has set aside confiscation orders passed under the Foreign Exchange Management Act, 1999 (FEMA), holding that such action cannot be sustained in the absence of reasons.A Division Bench of Justices Navin Chawla and Ravinder Dudeja partly allowed a batch of appeals filed against orders of the Appellate Tribunal for Foreign Exchange, which had affirmed penalties as well as confiscation of funds lying in Non-Resident (Non-Repatriable) Rupee (NRNR) accounts.The case arose from...

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...