Foreign Exchange Management Act, 1999

The Union of India appealed against the Bombay High Court's order granting bail to Hassan Ali Khan, who was accused under Section 4 of the Prevention of Money Laundering Act (PMLA) for handling billions of dollars allegedly derived from criminal activity and for obtaining multiple passports fraudulently. The Supreme Co…

The Special Director of Enforcement imposed a penalty on Ketan V. Parekh and others under the Foreign Exchange Management Act, 1999. The appellants filed appeals under Section 35 of the Act and sought condonation of a 1,056‑day delay, arguing that the time spent pursuing writ petitions in the Delhi High Court should be…

The Union of India appealed against a High Court order that had upheld the jurisdiction of the Special Director (Appeals) under FEMA to hear appeals against an adjudication order passed under Section 51 of the repealed FERA. The adjudication order, dated 5 December 2003, imposed a penalty on Godrej Industries Ltd. and …

M/s Carpet India, a carpet manufacturer, sold its products to an export house (IKEA Trading) which exported them abroad. The assessee claimed a deduction under Section 80HHC of the Income Tax Act, 1961, on a par with a direct exporter, based on export incentives such as Duty Drawback and DEPB. The Assessing Officer all…

Jagdish Narain Shukla filed a writ petition under Article 226 seeking the implementation of a Lokayukta report that alleged corruption by former minister Naseemuddin Siddiqui and former MLC Husna Siddiqui, claiming they had purchased assets at undervalued prices using income from unknown sources. The Lokayukta, under S…

The petitioners, children of a former Director of Animal Husbandry, were charged under Section 56 of the Foreign Exchange Regulation Act (FERA) for receiving foreign exchange. While the cases were pending before the Chief Judicial Magistrate, the State Government, with the High Court's resolution, transferred them to a…

Citi Bank, an authorized dealer under the Foreign Exchange Regulation Act, 1973 (FERA), accepted cash in foreign currency into the NRE account of a non‑resident Indian during October 1992‑January 1993. In 2002 the Enforcement Directorate issued a show‑cause notice alleging violations of several FERA provisions, relying…

Home buyers booked flats in various projects of the Amrapali Group of companies in Noida and Greater Noida, paying substantial amounts between 2010-2014. The builders failed to deliver possession within the promised 36 months and did not pay dues to the Noida and Greater Noida Authorities or repay loans taken from bank…

The petition challenged the operation of multinational accounting firms (MAFs) in India through Indian chartered accountant firms (ICAFs) that used the same brand name, alleging violations of Sections 25 and 29 of the Chartered Accountants Act, the Companies Act, FDI policy, RBI and FEMA regulations, and the ICAI Code …

The Foreign Exchange Management Act, 1999 (FEMA) repealed the Foreign Exchange Regulation Act, 1973 (FERA) but saved prosecutions for offences under sections 56 and 57 of FERA if cognizance was taken within two years of FEMA's commencement. An Enforcement Officer appointed under FERA filed a complaint on 11 February 20…

The Union of India challenged the appointment of part‑time members to the Appellate Tribunal for Foreign Exchange under Rule 5 of the 2000 Rules, arguing that the concept of part‑time members and their appointment from the Indian Legal Service were beyond the scope of the Foreign Exchange Management Act, 1999 (FEMA). T…

The appellant, Sanjiv Kumar, a police sub‑inspector, was convicted under IPC sections 395 (dacoity), 450 (robbery) and 342 (wrongful confinement) for a robbery of Indian and foreign currency from a licensed forex firm. The trial court sentenced him to ten years for 395, seven years for 450 and an undisclosed term for 3…

Century Metal Recycling Pvt. Ltd. regularly imported aluminium scrap for alloy production and declared a transaction value of Rs.81.31 per kg. The customs authorities rejected this value, citing a Valuation Alert and compelled the importer to consent to a valuation by the authorities, thereby waiving its right to provi…

Tulip Star Hotels Ltd. and its Executive Director were alleged to have sold US$147,000 and £1,000 to Hotel Zam Zam in 1997 through persons not authorized under the RBI's Foreign Exchange Management (FLM) memorandum, violating sections 6(4), 6(5), 7 and 8 of the Foreign Exchange Regulation Act, 1973 (FERA) and paragraph…

The appeal arose from a summary suit filed by IDBI Trusteeship Services Ltd., a debenture trustee, to enforce an unconditional corporate guarantee issued by Hubtown Ltd. (formerly Ackruti City Ltd.) on behalf of its subsidiary Vinca. The plaintiff alleged defaults on debentures issued by Amazia and Rubix, while the def…

The Special Police Establishment (SPE) of Madhya Pradesh, constituted under the 1947 Act to investigate corruption‑related offences, was directed by the High Court to disclose information sought by a Town Inspector under the Right to Information Act, 2005 (RTI). The appellant argued that a 2011 State Government notific…

MIS Opera House Exports Ltd. and others were adjudicated under the Foreign Exchange Regulation Act, 1973 (FERA) for alleged violations relating to export bill realizations. The adjudicating authority issued an order on 11 October 2007, which was served on the company on 25 October 2007. The company filed an appeal befo…

The appellant, Jaseela Shaji, challenged the preventive detention of her husband under COFEPOSA, arguing that the detaining authority failed to provide the statement of Ms. Preetha Pradeep, a material document relied upon for the detention, thereby violating Article 22(5) of the Constitution. She also contended that th…

The Union of India prosecuted M/s Maple Leaf Trading International Pvt. Ltd. and its foreign shareholders for trading imported gold coins without RBI permission, alleging violations of Sections 19(1)(a), 19(1)(d), 29(1)(b), 47(1), 49(1)(a) and 68 of the Foreign Exchange Regulation Act, 1973. The Adjudicating Authority …

Raj Kumar Shivhare was penalised under the Foreign Exchange Management Act, 1999 (FEMA) for receiving unauthorized foreign payments and was ordered to deposit a penalty of Rs.2 crore. He appealed the Appellate Tribunal's order refusing dispensation of the pre‑deposit of penalty, but the Tribunal upheld the requirement.…

The Supreme Court examined whether the Reserve Bank of India's Master Circular on wilful default applies to defaults arising from derivative transactions or is limited to traditional lender‑borrower relationships. Kotak Mahindra Bank had classified Hindustan National Glass and other parties as wilful defaulters for non…

Harmony Innovation Shipping Ltd. entered into a charter agreement with Gupta Coal India Ltd. that stipulated arbitration in London, governed by English law, and specified the arbitrators as members of the London Arbitration Association. The appellant sought interim relief under Section 9 of the Arbitration and Concilia…

The Supreme Court examined a contempt petition filed by Rajeshwar Singh, an Assistant Director of the Enforcement Directorate, who alleged that respondents including Subrata Roy Sahara were intimidating him and attempting to derail the court‑monitored investigation into the 2G Spectrum scam. The petitioner invoked Arti…

The dispute arose in Biological E. Ltd. after the death of its promoter, when the widow (respondent No.1) and her three daughters were appointed directors. The widow challenged the validity of board meetings held on 9‑4‑2013, 10‑4‑2013 and 11‑4‑2013, the appointment of her daughters as directors and the continuance of …

The petitioners, a group of NGOs and individuals, challenged the 2020 amendments to the Foreign Contribution (Regulation) Act, 2010, specifically sections 7, 12(1A), 12A and 17, alleging that the prohibition on transfer of foreign contributions, the requirement to open a single FCRA account with SBI, and the mandatory …

During the COVID-19 pandemic, the petitioner conducted three crowdfunding campaigns on the Ketto platform. The Enforcement Directorate (ED) opened investigations under FEMA and later filed a complaint under the Prevention of Money‑Laundering Act (PMLA), attaching the petitioner’s bank account in Navi Mumbai. The Specia…

The appellant, a managing director of a pharmaceutical firm, sought to execute an international Merchanting Trade Transaction (MTT) for PPE products, but the Reserve Bank of India (RBI) denied permission under Clause 2(iii) of the 2020 MTT Guidelines because the Indian government had banned PPE exports during the COVID…

Kanwar Natwar Singh and others appealed against the Directorate of Enforcement after a show‑cause notice was issued under Rule 4(1) of the Foreign Exchange Management (Adjudication Proceedings and Appeal) Rules, 2000. The appellants demanded that the adjudicating authority furnish copies of all documents in its possess…

The Enforcement Directorate issued a show‑cause notice against Zoom Enterprises Ltd and its Managing Director, Suborno Bose, alleging violation of Section 10(6) of the Foreign Exchange Management Act, 1999 (FEMA) for failing to use foreign exchange procured for the import of refrigeration equipment and for not surrende…

The Reserve Bank of India (RBI) issued a Statement and a Circular in April 2018 directing banks and other regulated entities to cease dealing with persons or entities dealing in virtual currencies (VCs) and to exit existing relationships within three months. The petitioners – a trade association and several cryptocurre…

The appellant, Gautam Jain, was detained under Section 3(1) of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA) on grounds of alleged hawala transactions. He challenged the detention, arguing that the order was based on a single composite ground and that the authorities f…

Venture Global Engineering (Venture) and Tech Mahindra (formerly Satyam) entered into a joint‑venture agreement under which each held 50% of a JV company. An arbitration under the London Court of International Arbitration awarded the shares of Venture to Satyam, finding Venture in default. After the award, the former S…

Manohar Lal Sharma filed a writ petition challenging Press Notes that introduced a policy permitting up to 51 % foreign direct investment in multi‑brand retail trading, contending that the policy was unconstitutional and beyond the government’s authority. The Court examined the competence of the Central Government and …

The appellants, a company and its directors, were alleged to have acquired shares of a Singapore entity without RBI approval, violating Section 4 of the Foreign Exchange Management Act (FEMA). The Enforcement Directorate seized their assets under Section 37A, but the Competent Authority later refused to confirm the sei…