AT determined appellant violated FEMA, 1999 by illegally ...

Foreign Currency Violation: Illegal Possession and Unauthorized Transactions Expose Serious FEMA Breaches, Resulting in Substantial Penalties

May 17, 2025

Case Laws     FEMA     AT

AT determined appellant violated FEMA, 1999 by illegally possessing unaccounted foreign currency without authorization from RBI. The tribunal found appellant's explanation for foreign currency possession unconvincing and identified mala fide intentions. The seized foreign currency equivalent to INR 3,30,82,775.28 was confiscated under Section 13(2), with a penalty of Rs. One lakh imposed. Additionally, the payment of USD 22,000 to an NRI without RBI permission constituted a breach of Section 3(b), resulting in a supplementary penalty of Rs. 10,000. The appeal was dismissed, and the Adjudicating Authority's original order was fully upheld.

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