Enforcement Directorate issued 220 notices under Foreign Exchange Management Act in past three years. From 2009 to 2012, Directorate of Enforcement in the action of its investigation had issued 220 show cause notices under the FEMA. These notices were issued in context with the illegal funds transfer in India via illegal medium.
The Directorate of Enforcement did not register the cases associated with illegal money flow from external sources in respect to the state government, Minister of State for Finance S S Palanimanickam wrote to Lok Sabha.
At present, the provisions of FEMA are quite adequate as well as appropriate on the portion of punishment or penalty.
In India, all the transactions which include foreign currency, also known as foreign exchange were initially regulated by FERA or Foreign Exchange Regulations Act, 1973. Eventually, economic reforms and liberalised scenario took place. The FERA was therefore replaced by FEMA, 1999. FEMA allows only the authorised people to deal with foreign security or foreign exchange. The definition of authorised people can be found in the Act.
Related Current Affairs:
Latest Current Affairs