Compounding of Contraventions under FEMA 1999

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....ers is invited to the Foreign Exchange (Compounding Proceedings) Rules, 2000 published by the Government of India vide G.S. R.No. 383 (E) dated 3^rd May 2000 as amended vide G.S.R. No. 443 (E) dated 2^nd November 2002 (copy enclosed). In terms of these rules Reserve Bank was empowered to compound contravention under the provisions of following sections of FEMA, 1999. • Section 7 (Expo....

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....and fraudulent transactions, it has been decided to put in place the procedures for compounding of contravention under FEMA. The Government of India has, therefore, in consultation with Reserve Bank placed the responsibilities of administering compounding of cases with the Reserve Bank, except under Section 3 (a) of FEMA. 3. Accordingly, the Government has notified amendment to the Foreign Exch....

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....a contravention has been compounded by the Compounding Authority, no proceeding or further proceeding will be initiated or continued, as the case may be, against the contravener. 5. Process for Compounding 5.1 An Application for compounding of a contravention under FEMA may be submitted to the Compounding Authority (CA) either on being advised of a contravention under FEMA either through a m....

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....ng Authority within 180 days from the date of the receipt of the application for compounding. 5.4 The sum for which the contravention has been compounded shall be paid within fifteen days from the date of the order of compounding. 5.5 The payment towards Aapplication fee and the sum for which contravention has been compounded shall be paid by demand draft in favour of the Compounding Authori....