Press Information Bureau
Government of India
Ministry of Finance

02-September-2011 18:06 IST

FEMA Violations

            The Foreign Exchange Management  Act, 1999 is a civil act in nature as such there is no provision for launching the prosecutions.  During the last three years i.e. 2009-10,2010-11 and 2011-12 (upto July 2011) , the Directorate of  Enforcement has issued 990 Show Cause Notices to various persons/firms under Foreign Exchange Management Act,1999 (FEMA), for initiating the adjudication proceedings.  The Zone-wise details of the Show Cause Notices issued during the last three years is as under: -

 

This information was given by the Minister of State for Finance, Shri   S.S.Palanimanickam in written reply to an Unstarred Question in Lok  Sabha today.

DSM/ PM

Foreign Exchange Management Act civil nature prompts administrative adjudication and issuance of enforcement show cause notices. The Foreign Exchange Management Act is a civil regulatory statute without provision for criminal prosecution; accordingly, the Directorate of Enforcement issued 990 show cause notices over the three-year period 2009-10 to 2011-12 (up to July 2011) to initiate administrative adjudication proceedings, with a zone wise breakdown of notices for enforcement offices provided in the press release.