FEMA
ED Must First Prove FERA Violation Before Shifting Burden Of Proof To Accused: Delhi High Court
The Delhi High Court has ruled that the Enforcement Directorate must first establish that a person committed an act requiring permission under the Foreign Exchange Regulation Act (FERA) before the burden shifts to that person to prove they had the requisite permission.A Division Bench of Justice Navin Chawla and Justice Ravinder Dudeja held that the Department had failed to prove that Laxman T. Advani had dealt in foreign currency. The court dismissed the Union government's appeal against the...
Karnataka High Court Dismisses Genpact's Challenge To ED Seizure Of Gurgaon Office Under FEMA
The Karnataka High Court has dismissed Genpact India's, a business process management and professional services company, challenge to the Enforcement Directorate's seizure of its Gurgaon head-office premises under Section 37A of the Foreign Exchange Management Act (FEMA).At the same time, the court set aside the ED's rejection of Genpact's application for a no-objection certificate (NOC) to invest $100 million in its GIFT City entity, holding that the rejection did not give adequate reasons for...
Penalty Under FERA Cannot Be Justified Merely Because It Falls Within Statutory Maximum: Delhi High Court
The Delhi High Court has held that a penalty cannot be justified merely because it falls within the statutory maximum provided under Foreign Exchange Regulation Act, 1973 (FERA). The authority imposing the penalty must give reasons for the amount imposed and ensure that it is proportionate to the contravention."We are, therefore, of the opinion that merely because the imposed penalty falls within the maximum limit prescribed under Section 50 of the FERA, does not, by itself, validate it. The...
FERA Opportunity Notice Mandatory Before Instituting Complaint, Taking Cognizance: Supreme Court
The Supreme Court on Tuesday held that no criminal complaint under the Foreign Exchange Regulation Act (FERA) can be instituted unless the proposed accused is first given a meaningful opportunity to show it had the requisite permission, ruling that the requirement is mandatory and not a mere procedural formality.A bench of Justices J.B. Pardiwala and Manoj Misra, relying on the Delhi High Court's decisions in Devashis Bharracharya, Sanjay Malviya, United India Airways Ltd., and Shilpi Modes,...
Supreme Court Quashes 1992 FERA Proceedings Against Standard Chartered Bank Over NRE Transactions
The Supreme Court on Tuesday quashed criminal proceedings initiated against Standard Chartered Bank under the Foreign Exchange Regulation Act, 1973 (FERA). The case stemmed from allegations that the bank facilitated foreign exchange transactions in 1992 by allowing foreign currency deposits and remittances through Non-Resident External (NRE) accounts without the approvals mandated under the Act.A bench of Justices J.B. Pardiwala and Manoj Misra allowed the bank's appeal against the Bombay High...
RBI Drops Prior Approval Requirement For Foreign Currency Note Write-Offs Exceeding USD 2,000
The Reserve Bank of India (RBI) has withdrawn the requirement for its prior approval before foreign currency notes exceeding USD 2,000 are written off and revised the reporting format for such write-offs. The change forms part of a broader revision of reporting requirements for Authorised Persons under the Foreign Exchange Management Act, 1999. It has been notified through A.P. (DIR Series) Circular No. 17 dated June 24, 2026, issued pursuant to the Foreign Exchange Management (Authorised...
Madras High Court Dismisses Flipkart Founders' Review Plea Against FEMA Proceedings
The Madras High Court has dismissed review petitions filed by Flipkart co-founders Sachin Bansal and Binny Bansal and three investors seeking reconsideration of an earlier order that declined to interfere with Enforcement Directorate proceedings under the Foreign Exchange Management Act (FEMA). Justice S Sounthar held that the petitioners have an effective statutory remedy under FEMA and that the issues raised by them must first be agitated before the adjudicating authority. “In view of the...
ED Closes FEMA Proceedings Against Apollo Hospitals After RBI Compounds Contraventions
The Enforcement Directorate (ED) on Wednesday said that adjudication proceedings under the Foreign Exchange Management Act (FEMA) against Apollo Hospitals Enterprises Limited have been terminated. This follows the Reserve Bank of India's (RBI) decision to compound the company's contraventions under the Act. The RBI passed the compounding order under Section 15 of FEMA after obtaining a "No Objection" from the ED, according to a press release issued by the agency on June 17, 2026. The...
India Opens Investment In Listed Equity Instruments To All Overseas Individuals
The Centre has expanded access to India's listed equity markets by allowing all individuals resident outside India to make portfolio investments in listed Indian companies on a repatriation basis. Previously, this facility was available only to Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs)The change comes through the Foreign Exchange Management (Non-Debt Instruments) (Third Amendment) Rules, 2026, notified by the Ministry of Finance on June 12, 2026. Through the amendment,...
ED Probe Against Myntra Closed After RBI Compounds FEMA Contraventions
The Reserve Bank of India (RBI) has compounded alleged violations of the Foreign Exchange Management Act (FEMA) by fashion e-commerce company Myntra Designs Private Limited, bringing an Enforcement Directorate (ED) investigation against the company to an end. The ED said it had launched the probe based on credible information about two alleged FEMA contraventions. One related to delays in filing Annual Performance Reports (APRs) in respect of overseas investments worth ₹42.85 crore. The other...
Seizure Under 37A FEMA Cannot Continue After Repatriation Of Foreign Exchange: SAFEMA Tribunal
On 14 May, the Appellate Tribunal under the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act (SAFEMA) held that seizure of an equivalent asset in India under Section 37A of the Foreign Exchange Management Act (FEMA) cannot continue once the resident no longer holds the overseas asset and the equivalent foreign exchange value has been repatriated to India. A Bench comprising Members Balesh Kumar and Rajesh Malhotra allowed the appeal filed by Devendra N. Desai and set...
SAFEMA Appellate Tribunal Restores Seizure Of DMK MP Jagathrakshakan's Children's Properties In FEMA Case
The Appellate Tribunal under SAFEMA has partly allowed the ED's appeal in the foreign assets case involving DMK MP S. Jagathrakshakan and his family. It restored seizure of properties belonging to his children over shareholdings in a Singaporean company. It, however, upheld the release of properties belonging to Jagathrakshakan and his late wife. The Tribunal said the same shares could not be used to justify repeated attachment. The coram of Members Balesh Kumar and Rajesh Malhotra passed the...