Compounding of contraventions enables voluntary admission and settlement under FEMA after a personal hearing and specified payment.

Compounding under FEMA is a voluntary settlement mechanism whereby an admitted breach of FEMA is resolved by pleading guilt and seeking redress; it requires offering a personal hearing and permits acceptance of a specified sum to compound contraventions defined under section 13, while exclusions under the compounding rules render certain categories ineligible for compounding by the designated authority.

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