Compounding of contraventions enables voluntary settlement under FEMA, with Reserve Bank administered procedure and referral for serious breaches. Compounding under FEMA is a voluntary settlement mechanism administered by the Reserve Bank (except clause (a) of Section 3 matters handled by the Directorate of Enforcement). Applications in prescribed form with fee are submitted to the Compounding Authority, which may call for documents, hold personal hearings and conclude proceedings within the prescribed period. The Compounding Order specifies the provisions contravened and the sum to be paid; quantum is determined at the discretion of the Authority based on factors such as unfair gain, loss to the exchequer, repetitiveness and the contravener's conduct. Non-quantifiable, money-laundering, national security or serious regulatory breaches are excluded and referred for investigation.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Compounding of contraventions enables voluntary settlement under FEMA, with Reserve Bank administered procedure and referral for serious breaches.
Compounding under FEMA is a voluntary settlement mechanism administered by the Reserve Bank (except clause (a) of Section 3 matters handled by the Directorate of Enforcement). Applications in prescribed form with fee are submitted to the Compounding Authority, which may call for documents, hold personal hearings and conclude proceedings within the prescribed period. The Compounding Order specifies the provisions contravened and the sum to be paid; quantum is determined at the discretion of the Authority based on factors such as unfair gain, loss to the exchequer, repetitiveness and the contravener's conduct. Non-quantifiable, money-laundering, national security or serious regulatory breaches are excluded and referred for investigation.
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