https://www.taxtmi.com/caselaws?id=794840 Director liability under Section 42 of the Foreign Exchange Management Act, 1999 is described as arising only where the person was in charge of and responsible for the company's business at the relevant time, or where consent, connivance or neglect is established. The text states that mere designation as a director is insufficient without proof of responsibility for finance, banking, export-import or compliance functions. It further notes that where explanations limiting the director's role to technical and administrative work are not meaningfully addressed, the statutory basis for penalty is not made out, resulting in the penalty being set aside. en-us Thu, 02 Jul 2026 00:00:00 +0530 Mon, 13 Jul 2026 09:18:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=794840 Director liability under Section 42 of the Foreign Exchange Management Act, 1999 is described as arising only where the person was in charge of and responsible for the company's business at the relevant time, or where consent, connivance or neglect is established. The text states that mere designation as a director is insufficient without proof of responsibility for finance, banking, export-import or compliance functions. It further notes that where explanations limiting the director's role to technical and administrative work are not meaningfully addressed, the statutory basis for penalty is not made out, resulting in the penalty being set aside. Case-Laws FEMA Thu, 02 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=794840