Adjudicating Authority under FEMA

By | April 18, 2016
(Last Updated On: April 18, 2016)

Section – 16, Foreign Exchange Management Act, 1999

ADJUDICATION AND APPEAL

Appointment of Adjudicating Authority.

16. (1) For the purpose of adjudication under section 13, the Central Government may, by an order published in the Official Gazette (see  Notification Nos. SO 535(E), dated 1-6-2000 and SO 1155(E), dated 26-12-2000.) , appoint as many officers of the Central Government as it may think fit, as the Adjudicating Authorities for holding an inquiry in the manner prescribed (See FEM (Adjudication Proceedings and Appeal) Rules, 2000.) after giving the person alleged to have committed contravention under section 13, against whom a complaint has been made under sub-section (3) (hereinafter in this section referred to as the said person) a reasonable opportunity of being heard for the purpose of imposing any penalty:

Provided that where the Adjudicating Authority is of opinion that the said person is likely to abscond or is likely to evade in any manner, the payment of penalty, if levied, it may direct the said person to furnish a bond or guarantee for such amount and subject to such conditions as it may deem fit.

(2) The Central Government shall, while appointing the Adjudicating Authorities under sub-section (1), also specify in the order published in the Official Gazette, their respective jurisdictions.

(3) No Adjudicating Authority shall hold an enquiry under sub-section (1) except upon a complaint in writing made by any officer authorized by a general or special order (See Notification No. SO 1157(E), dated 26-12-2000.)by the Central Government.

(4) The said person may appear either in person or take the assistance of a legal practitioner or a chartered accountant of his choice for presenting his case before the Adjudicating Authority.

(5) Every Adjudicating Authority shall have the same powers of a civil court which are conferred on the Appellate Tribunal under sub-section (2) of section 28 and—

(a)all proceedings before it shall be deemed to be judicial proceedings within the meaning of sections 193 and 228 of the Indian Penal Code (45 of 1860);
(b)shall be deemed to be a civil court for the purposes of sections 345 and 346 of the Code of Criminal Procedure, 1973 (2 of 1974).

(6) Every Adjudicating Authority shall deal with the complaint under sub-section (2) as expeditiously as possible and endeavour shall be made to dispose of the complaint finally within one year from the date of receipt of the complaint:

Provided that where the complaint cannot be disposed of within the said period, the Adjudicating Authorityshall record periodically the reasons in writing for not disposing of the complaint within the said period.


APPOINTMENT OF ADJUDICATING AUTHORITIES AND THEIR RESPECTIVE JURISDICTION

NOTIFICATION NO. GSR 535(E), DATED 1-6-2000
[SUPERSEDED BY NOTIFICATION NO. SO 1246(E), DATED 30-5-2012]

In exercise of the powers conferred under sub-section (1) of section 16 of the Foreign Exchange Management Act, 1999 (42 of 1999), the Central Government hereby appoints the following officers as adjudicating authorities and their respective jurisdiction to hold an inquiry for the purpose of adjudication under section 13 of the said Act, namely :—

S. No.Designation of adjudicating authoritiesJurisdiction authorities
(1)(2)(3)
1.DirectorCases involving an amount excee-ding Rs. one crore falling under all the zones of the Directorate of Enforcement.
2.Special Director of Enforcement-I, in the Headquarters at Delhi.Cases involving an amount exceeding Rs. one crore falling under Chennai, Calcutta, Delhi, Jallandhar and Bangalore zones of the Directorate of Enforcement as may be  assigned by the Director of Enforcement either by general or special order.
3.Special Director of Enforcement-II in the Headquarters at Delhi. 
4.Special Director of Enforcement-III at Mumbai.Cases involving an amount exceeding Rs. one crore falling under Ahmedabad and Mumbai zones of the Directorate of Enforcement.
5.Additional Director of Enforcement in the Headquarters at Delhi.Cases involving an amount exceeding Rs. 75 lakhs but not more than Rs. 1 crore falling under all the zones of the Directorate of Enforcement.
6.Deputy Directors of Enforcement of Ahmedabad/Bangalore/ Chennai/Calcutta/Delhi/ Jallandhar/Mumbai zones.Cases involving an amount not exceeding Rs. 75 lakhs falling under the respective zones of the Directorate of Enforcement of such Deputy Director of Enforcement or as may be assigned by the Director of Enforcement.
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