FERA Opportunity Notice Mandatory Before Instituting Complaint, Taking Cognizance: Supreme Court

The Supreme Court on Tuesday held that no criminal complaint under the Foreign Exchange Regulation Act (FERA) can be instituted unless the proposed accused is first given a meaningful opportunity to show it had the requisite permission, ruling that the requirement is mandatory and not a mere procedural formality.A bench of Justices J.B. Pardiwala and Manoj Misra, relying on the Delhi High Court's decisions in Devashis Bharracharya, Sanjay Malviya, United India Airways Ltd., and Shilpi Modes,...

Supreme Court Quashes 1992 FERA Proceedings Against Standard Chartered Bank Over NRE Transactions

The Supreme Court on Tuesday quashed criminal proceedings initiated against Standard Chartered Bank under the Foreign Exchange Regulation Act, 1973 (FERA). The case stemmed from allegations that the bank facilitated foreign exchange transactions in 1992 by allowing foreign currency deposits and remittances through Non-Resident External (NRE) accounts without the approvals mandated under the Act.A bench of Justices J.B. Pardiwala and Manoj Misra allowed the bank's appeal against the Bombay High...

Adjudicating Authority Abdicated Appellate Powers, Supreme Court Sets Aside FEMA Order Passed Pending Appeal

The Supreme Court has set aside a Madras High Court judgment and a final adjudication order under the Foreign Exchange Management Act, holding that the Adjudicating Authority acted improperly by effectively overriding an order refusing to confirm seizure while that order was under appeal. A Bench of Justices Vikram Nath and Sandeep Mehta observed, “In effect, the Adjudicating Authority has undone the order of the Competent Authority even while the appeal against the said order is pending. Such...