Saving of repealed foreign exchange proceedings under FEMA upheld for pre-repeal contraventions and adjudication appointments.

Section 49 of the Foreign Exchange Management Act, 1999 preserves liability and related ings for contraventions committed under the repealed Foreign Exchange Regulation Act, 1973. Offences committed when the repealed Act was in force continue to be governed by that Act as if it had not been repealed, and the saving provision also protects actions taken under the earlier law, including appointments and notices, so long as they are not inconsistent with the new Act. On that basis, proceedings against alleged pre-repeal contraventions and the appointment of adjudicating officers were held to be validly continued under the saved regime.

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Issues: Whether the proceedings and appointment of adjudicating officers in respect of alleged contraventions committed under the repealed Foreign Exchange Regulation Act, 1973 were saved by section 49 of the Foreign Exchange Management Act, 1999 and could be continued after the commencement of the latter Act.

Analysis: Section 49 of the Foreign Exchange Management Act, 1999 expressly repeals the Foreign Exchange Regulation Act, 1973 but preserves certain consequences of the repealed law. Sub-section (4) provides that, subject to sub-section (3), offences committed under the repealed Act continue to be governed by the repealed Act as if it had not been repealed. The notices in question related to alleged contraventions committed when the repealed Act was in force, and the later proceedings were only for adjudication of those earlier offences. The saving provision also preserves actions taken under the repealed Act, including appointments and notices, so long as they are not inconsistent with the new Act.

Conclusion: The proceedings were validly saved by section 49 of the Foreign Exchange Management Act, 1999 and the challenge to the appointment and continuation of adjudication failed.

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