'Appellate Tribunal for Foreign Exchange'
The Foreign Exchange Regulation Act, 1973 (FERA) was reviewed in 1993 and several amendments were enacted as part of the ongoing process of economic liberalization relating to foreign investment and foreign trade for closer interaction with the world economy. It was subsequently felt that it would be better to repeal the existing FERA and enact a new legislation. Reserve Bank of India constituted a Task Force for the said purpose. It submitted its report in 1994 recommending substantial changes in existing Act. Keeping in view the changed environment, Central Government decided to introduce the Foreign Exchange Management Bill and repeal FERA. The Foreign Exchange Management Bill was passed by both the house of Parliament and came on the Statute books as the 'Foreign Exchange Management Act, 1999 (42 of 1999)' (FEMA) w.e.f. 1st June, 2000. It repeals FERA and, the Appellate Board constituted under section 52 of the said Act. Under section 18 of FEMA Central Government established an Appellate Tribunal known as the 'Appellate Tribunal for Foreign Exchange' to hear appeal against the orders of the Adjudicating Authorities and the Special Director (Appeal) under the Act.
The Appellate Tribunal consists of a Chairperson and such members as the Central Government may deem fit. It can also sit in Benches. Such Benches can be constituted by Chairperson with one or more members as the Chairperson may deem fit. The Benches of the Appellate Tribunal are ordinarily to sit at New Delhi and also sit at such other places as the Central Government may in consultation with the Chairperson notify. These Benches would have jurisdiction in relation to the areas which Central Government may notify in respect of each Bench.
The Appellate Tribunal is administered by highly qualified and experienced persons in legal field. The Chairperson is to be a person who has been or is qualified to be a judge of the High Court. Similarly a member is to be a person who has been or is qualified to be a District Judge. They also enjoy high degree of immunity. The Chairperson or a Member cannot be removed from his office except by order of the Central Government on the ground of proved misbehaviour or incapacity after an inquiry is made by such person as the President as the President may appoint.
The Appellate Tribunal while hearing the Appeal is not bound by the procedure laid down by Code of Civil Procedure, 1908 but is guided by the Principles of natural justice and has power to regulate its own procedure. Under the Act jurisdiction of the civil court is barred in respect of any matter which an Adjudicating Authority or, the Appellate Tribunal or the Special Director (Appeals) is empowered by or under the Act to determine.
The Act provides for regulation and management of foreign exchange, holding of foreign exchange, current account transactions, capital account transactions, realization and repatriation of foreign exchange etc. Contravention of any of the provisions of the Act or rules, regulations, notifications, directions or orders issued in exercise of the powers under the Act upon adjudication are made liable to a penalty up to thrice the sum involved in such contravention where such amount is quantifiable or, up to Rs 2 lakhs where such amount is not quantifiable. Continuing contravention is liable to further penalty which can extent to Rs. 5,000/- for every day after the first day during which contravention continues. In case any person fails to make full payment of the penalty imposed on him within a period of 90 days, he is liable to civil imprisonment under the Act.
An appeal can be filed against any decision or order of the Appellate Tribunal on a question of law by an aggrieved person to the High Court within 60 days from the date of communication of the order to him.
The Foreign Exchange Regulation Act, 1973 (FERA) was reviewed in 1993 and several amendments were enacted as part of the ongoing process of economic liberalization relating to foreign investment and foreign trade for closer interaction with the world economy. It was subsequently felt that it would be better to repeal the existing FERA and enact a new legislation. Reserve Bank of India constituted a Task Force for the said purpose. It submitted its report in 1994 recommending substantial changes in existing Act. Keeping in view the changed environment, Central Government decided to introduce the Foreign Exchange Management Bill and repeal FERA. The Foreign Exchange Management Bill was passed by both the house of Parliament and came on the Statute books as the 'Foreign Exchange Management Act, 1999 (42 of 1999)' (FEMA) w.e.f. 1st June, 2000. It repeals FERA and, the Appellate Board constituted under section 52 of the said Act. Under section 18 of FEMA Central Government established an Appellate Tribunal known as the 'Appellate Tribunal for Foreign Exchange' to hear appeal against the orders of the Adjudicating Authorities and the Special Director (Appeal) under the Act.
The Appellate Tribunal consists of a Chairperson and such members as the Central Government may deem fit. It can also sit in Benches. Such Benches can be constituted by Chairperson with one or more members as the Chairperson may deem fit. The Benches of the Appellate Tribunal are ordinarily to sit at New Delhi and also sit at such other places as the Central Government may in consultation with the Chairperson notify. These Benches would have jurisdiction in relation to the areas which Central Government may notify in respect of each Bench.
The Appellate Tribunal is administered by highly qualified and experienced persons in legal field. The Chairperson is to be a person who has been or is qualified to be a judge of the High Court. Similarly a member is to be a person who has been or is qualified to be a District Judge. They also enjoy high degree of immunity. The Chairperson or a Member cannot be removed from his office except by order of the Central Government on the ground of proved misbehaviour or incapacity after an inquiry is made by such person as the President as the President may appoint.
The Appellate Tribunal while hearing the Appeal is not bound by the procedure laid down by Code of Civil Procedure, 1908 but is guided by the Principles of natural justice and has power to regulate its own procedure. Under the Act jurisdiction of the civil court is barred in respect of any matter which an Adjudicating Authority or, the Appellate Tribunal or the Special Director (Appeals) is empowered by or under the Act to determine.
The Act provides for regulation and management of foreign exchange, holding of foreign exchange, current account transactions, capital account transactions, realization and repatriation of foreign exchange etc. Contravention of any of the provisions of the Act or rules, regulations, notifications, directions or orders issued in exercise of the powers under the Act upon adjudication are made liable to a penalty up to thrice the sum involved in such contravention where such amount is quantifiable or, up to Rs 2 lakhs where such amount is not quantifiable. Continuing contravention is liable to further penalty which can extent to Rs. 5,000/- for every day after the first day during which contravention continues. In case any person fails to make full payment of the penalty imposed on him within a period of 90 days, he is liable to civil imprisonment under the Act.
An appeal can be filed against any decision or order of the Appellate Tribunal on a question of law by an aggrieved person to the High Court within 60 days from the date of communication of the order to him.
0 comments: