1nL ICkLIGN LkCnANGL MANAGLMLN1 AC1, 1999

nC. 42 Cl 1999 [29Lh uecember, 1999.]

An AcL Lo consolldaLe and amend Lhe law relaLlng Lo forelgn exchange wlLh Lhe ob[ecLlve of
faclllLaLlng exLernal Lrade and paymenLs and for promoLlng Lhe orderly developmenL and
malnLenance of forelgn exchange markeL ln lndla
8L lL enacLed by arllamenL ln Lhe llfLleLh ?ear of Lhe 8epubllc of lndla as follows:-

CnA1Lk I
kILIMINAk
1. Short t|t|e, extent, app||cat|on and commencement.- (1) 1hls AcL may be called Lhe lorelgn
Lxchange ManagemenL AcL, 1999.
(2) lL exLends Lo Lhe whole of lndla.
(3) lL shall also apply Lo all branches, offlces and agencles ouLslde lndla owned or conLrolled by a
person resldenL ln lndla and also Lo any conLravenLlon Lhere under commlLLed ouLslde lndla by any
person Lo whom Lhls AcL applles.
(4) lL shall come lnLo force on such daLe as Lhe CenLral CovernmenL may, by noLlflcaLlon ln Lhe
Cfflclal CazeLLe, appolnL:
rovlded LhaL dlfferenL daLes may be appolnLed for dlfferenL provlslons of Lhls AcL and any reference
ln any such provlslon Lo Lhe commencemenL of Lhls AcL shall be consLrued as a reference Lo Lhe
comlng lnLo force of LhaL provlslon.
2. Def|n|t|ons.-ln Lhls AcL, unless Lhe conLexL oLherwlse requlres,-
(a) "Ad[udlcaLlng AuLhorlLy" means an offlcer auLhorlzed under sub-secLlon (1) of secLlon 16
(b) "AppellaLe 1rlbunal" means Lhe AppellaLe 1rlbunal for lorelgn Lxchange esLabllshed under
secLlon 18,
(c) "auLhorlzed person" means an auLhorlzed dealer, money changer, off-shore banklng unlL or any
oLher person for Lhe Llme belng auLhorlzed under sub-secLlon (1) of secLlon 10 Lo deal ln forelgn
exchange or forelgn securlLles,
(d) "8ench" means a 8ench of Lhe AppellaLe 1rlbunal,
(e) "caplLal accounL LransacLlon" means a LransacLlon whlch alLers Lhe asseLs or llablllLles, lncludlng
conLlngenL llablllLles, ouLslde lndla of persons resldenL ln lndla or asseLs or llablllLles ln lndla of
persons resldenL ouLslde lndla, and lncludes LransacLlons referred Lo ln sub-secLlon (3) of secLlon
6,
(f) "Chalrperson" means Lhe Chalrperson of Lhe AppellaLe 1rlbunal,
(g) "charLered accounLanL" shall have Lhe meanlng asslgned Lo lL ln clause (b) of sub-secLlon (1) of
secLlon 2 of Lhe CharLered AccounLs AcL, 1949 (38 of 1949),
(h) "currency" lncludes all currency noLes, posLal noLes, posLal orders, money orders, cheques,
drafLs, Lravellers cheques, leLLers of credlL, bllls of exchange and promlssory noLes, credlL cards or
such oLher slmllar lnsLrumenLs, as may be noLlfled by Lhe 8eserve 8ank,
(l) "currency noLes" means and lncludes cash ln Lhe form of colns and bank noLes,
([) "currenL accounL LransacLlon" means a LransacLlon oLher Lhan a caplLal accounL LransacLlon and
wlLhouL pre[udlce Lo Lhe generallLy of Lhe foregolng such LransacLlon lncludes,-

(l) paymenLs due ln connecLlon wlLh forelgn Lrade, oLher currenL buslness, servlces, and shorL-
Lerm banklng and credlL faclllLles ln Lhe ordlnary course of buslness,
(ll) paymenLs due as lnLeresL on loans and as neL lncome from lnvesLmenLs,
(lll) remlLLances for llvlng expenses of parenLs, spouse and chlldren resldlng abroad, and
(lv) expenses ln connecLlon wlLh forelgn Lravel, educaLlon and medlcal care of parenLs, spouse
and chlldren,
(k) "ulrecLor of LnforcemenL" means Lhe ulrecLor of LnforcemenL appolnLed under sub-secLlon (1)
of secLlon 36,
(|) "exporL", wlLh lLs grammaLlcal varlaLlons and cognaLe expresslons, means-
(l) Lhe Laklng ouL of lndla Lo a place ouLslde lndla any goods,
(ll) provlslon of servlces from lndla Lo any person ouLslde lndla,
(m) "forelgn currency" means any currency oLher Lhan lndlan currency,
(n) "forelgn exchange" means forelgn currency and lncludes,-
(l) deposlLs, credlLs and balances payable ln any forelgn currency,
(ll) drafLs, Lravelers cheques, leLLers of credlL or bllls of exchange, expressed or drawn ln lndlan
currency buL payable ln any forelgn currency,
(lll) drafLs, Lravelers cheques, leLLers of credlL or bllls of exchange drawn by banks, lnsLlLuLlons
or persons ouLslde lndla, buL payable ln lndlan currency,
(o) "forelgn securlLy" means any securlLy, ln Lhe form of shares, sLocks, bonds, debenLures or any
oLher lnsLrumenL denomlnaLed or expressed ln forelgn currency and lncludes securlLles expressed
ln forelgn currency, buL where redempLlon or any form of reLurn such as lnLeresL or dlvldends ls
payable ln lndlan currency,
(p) "lmporL", wlLh lLs grammaLlcal varlaLlons and cognaLe expresslons, means brlnglng lnLo lndla any
goods or servlces,
(q) "lndlan currency" means currency whlch ls expressed or drawn ln lndlan rupees buL does noL
lnclude speclal bank noLes and speclal one rupee noLes lssued under secLlon 28A of Lhe 8eserve
8ank of lndla AcL, 1934 (2 of 1934),

(r) "legal pracLlLloner" shall have Lhe meanlng asslgned Lo lL ln clause (l) of sub-secLlon (1) of secLlon
2 of Lhe AdvocaLes AcL, 1961 (23 of 1961),


(s) "Member" means a Member of Lhe AppellaLe 1rlbunal and lncludes Lhe Chalrperson Lhereof,

(t) "noLlfy" means Lo noLlfy ln Lhe Cfflclal CazeLLe and Lhe expresslon "noLlflcaLlon" shall be
consLrued accordlngly,

(u) "person" lncludes-
(l) an lndlvldual,
(ll) a Plndu undlvlded famlly,
(lll) a company,
(lv) a flrm,
(v) an assoclaLlon of persons or a body of lndlvlduals, wheLher lncorporaLed or noL,
(vl) every arLlflclal [urldlcal person, noL falllng wlLhln any of Lhe precedlng sub-clauses, and
(vll) any agency, offlce or branch owned or conLrolled by such person,

(v) "person resldenL ln lndla" means-

(l) a person resldlng ln lndla for more Lhan one hundred and elghLy-Lwo days durlng Lhe course of
Lhe precedlng flnanclal year buL does noL lnclude-
(A) a person who has gone ouL of lndla or who sLays ouLslde lndla, ln elLher case-
(a) for or on Laklng up employmenL ouLslde lndla, or
(b) for carrylng on ouLslde lndla a buslness or vocaLlon ouLslde lndla, or
(c) for any oLher purpose, ln such clrcumsLances as would lndlcaLe hls lnLenLlon Lo sLay ouLslde
lndla for an uncerLaln perlod,

(8) a person who has come Lo or sLays ln lndla, ln elLher case, oLherwlse Lhan-
(a) for or on Laklng up employmenL ln lndla, or
(b) for carrylng on ln lndla a buslness or vocaLlon ln lndla,
or
(c) for any oLher purpose, ln such clrcumsLances as would lndlcaLe hls lnLenLlon Lo sLay ln lndla
for an uncerLaln perlod,

(ll) any person or body corporaLe reglsLered or lncorporaLed ln lndla,
(lll) an offlce, branch or agency ln lndla owned or conLrolled by a person resldenL ouLslde lndla,
(lv) an offlce, branch or agency ouLslde lndla owned or conLrolled by a person resldenL ln lndla,
(w) "person resldenL ouLslde lndla" means a person who ls noL resldenL ln lndla,
(x) "prescrlbed" means prescrlbed by rules made under Lhls AcL,
(y) "repaLrlaLe Lo lndla" means brlnglng lnLo lndla Lhe reallzed forelgn exchange and-
(l) Lhe selllng of such forelgn exchange Lo an auLhorlzed person ln lndla ln exchange for rupees, or
(ll) Lhe holdlng of reallzed amounL ln an accounL wlLh an auLhorlzed person ln lndla Lo Lhe exLenL
noLlfled by Lhe 8eserve 8ank, and lncludes use of Lhe reallzed amounL for dlscharge of a debL or
llablllLy denomlnaLed ln forelgn exchange and Lhe expresslon "repaLrlaLlon" shall be consLrued
accordlngly,
(z) "8eserve 8ank" means Lhe 8eserve 8ank of lndla consLlLuLed under sub-secLlon (1) of secLlon 3 of
Lhe 8eserve 8ank of lndla AcL, 1934 (2 of 1934),
(za) "securlLy" means shares, sLocks, bonds and debenLures, CovernmenL securlLles as deflned ln he
ubllc uebL AcL, 1944 (18 of 1944), savlngs cerLlflcaLes Lo whlch Lhe CovernmenL Savlngs
CerLlflcaLes AcL, 1939 (46 of 1939) applles, deposlL recelpLs ln respecL of deposlLs of securlLles and
unlLs of Lhe unlL 1rusL of lndla esLabllshed under sub-secLlon (1) of secLlon 3 of Lhe unlL 1rusL of
lndla AcL, 1963 (32 of 1963) or of any muLual fund and lncludes cerLlflcaLes of LlLle Lo securlLles, buL
does noL lnclude bllls of exchange or promlssory noLes oLher Lhan CovernmenL promlssory noLes or
any oLher lnsLrumenLs whlch may be noLlfled by Lhe 8eserve 8ank as securlLy for Lhe purposes of Lhls
AcL,
(zb) "servlce" means servlce of any descrlpLlon whlch ls made avallable Lo poLenLlal users and
lncludes Lhe provlslon of faclllLles ln connecLlon wlLh banklng, flnanclng, lnsurance, medlcal
asslsLance, legal asslsLance, chlL fund, real esLaLe, LransporL, processlng, supply of elecLrlcal or oLher
energy, boardlng or lodglng or boLh, enLerLalnmenL, amusemenL or Lhe purveylng of news or oLher
lnformaLlon, buL does noL lnclude Lhe renderlng of any servlce free of charge or under a conLracL of
personal servlce ,
(zc) "Speclal ulrecLor (Appeals)" means an offlcer appolnLed under secLlon 18,

(zd) "speclfy" means Lo speclfy by regulaLlons made under Lhls AcL and Lhe expresslon "speclfled"
shall be consLrued accordlngly,
(ze) "1ransfer" lncludes sale, purchase, exchange, morLgage, pledge, glfL, loan or any oLher form of
Lransfer of rlghL, LlLle, possesslon or llen.

CnA1Lk II
kLGULA1ICN AND MANAGLMLN1 CI ICkLIGN LkCnANGL

3. Dea||ng |n fore|gn exchange, etc.- Save as oLherwlse provlded ln Lhls AcL, rules or regulaLlons
made Lhere under, or wlLh Lhe general or speclal permlsslon of Lhe 8eserve 8ank, no person shall-
(a) deal ln or Lransfer any forelgn exchange or forelgn securlLy Lo any person noL belng an
auLhorlzed person,
(b) make any paymenL Lo or for Lhe credlL of any person resldenL ouLslde lndla ln any manner,
(c) recelve oLherwlse Lhrough an auLhorlzed person, any paymenL by order or on behalf of any
person resldenL ouLslde lndla ln any manner.

LxplanaLlon.- lor Lhe purpose of Lhls clause, where any person ln, or resldenL ln, lndla recelves any
paymenL by order or on behalf of any person resldenL ouLslde lndla Lhrough any oLher person
(lncludlng an auLhorlzed person) wlLhouL a correspondlng lnward remlLLance from any place ouLslde
lndla, Lhen, such person shall be deemed Lo have recelved such paymenL oLherwlse Lhan Lhrough an
auLhorlzed person,
(d) enLer lnLo any flnanclal LransacLlon ln lndla as conslderaLlon for or ln assoclaLlon wlLh acqulslLlon
or creaLlon or Lransfer of a rlghL Lo acqulre, any asseL ouLslde lndla by any person.

explanaLlon.-lor Lhe purpose of Lhls clause, "flnanclal LransacLlon" means maklng any paymenL Lo, or
for Lhe credlL of any person, or recelvlng any paymenL for, by order or on behalf of any person, or
drawlng, lssulng or negoLlaLlng any blll of exchange or promlssory noLe, or Lransferrlng any securlLy
or acknowledglng any debL.

4. no|d|ng of fore|gn exchange, etc.- Save as oLherwlse provlded ln Lhls AcL, no person resldenL ln
lndla shall acqulre, hold, own, possess or Lransfer any forelgn exchange, forelgn securlLy or any
lmmovable properLy slLuaLed ouLslde lndla.

S. Current account transact|ons.- Any person may sell or draw forelgn exchange Lo or from an
auLhorlzed person lf such sale or drawl ls a currenL accounL LransacLlon: rovlded LhaL Lhe CenLral
CovernmenL may, ln publlc lnLeresL and ln consulLaLlon wlLh Lhe 8eserve 8ank, lmpose such
reasonable resLrlcLlons for currenL accounL LransacLlons as may be prescrlbed.

6. Cap|ta| account transact|ons. - (1) Sub[ecL Lo Lhe provlslons of sub-secLlon (2), any person may
sell or draw forelgn exchange Lo or from an auLhorlzed person for a caplLal accounL LransacLlon.

(2) 1he 8eserve 8ank may, ln consulLaLlon wlLh Lhe CenLral CovernmenL, speclfy-
(a) any class or classes of caplLal accounL LransacLlons whlch are permlsslble,
(b) Lhe llmlL up Lo whlch forelgn exchange shall be admlsslble for such LransacLlons: rovlded LhaL
Lhe 8eserve 8ank shall noL lmpose any resLrlcLlon on Lhe drawl of forelgn exchange for paymenLs
due on accounL of amorLlzaLlon of loans or for depreclaLlon of dlrecL lnvesLmenLs ln Lhe ordlnary
courLs of buslness.

(3) WlLhouL pre[udlce Lo Lhe generallLy of Lhe provlslons of sub-secLlon (2), Lhe 8eserve 8ank may,
by regulaLlons, prohlblL, resLrlcL or regulaLe Lhe followlng-
(a) Lransfer or lssue of any forelgn securlLy by a person resldenL ln lndla,
(b) Lransfer or lssue of any securlLy by a person resldenL ouLslde lndla,
(c) Lransfer or lssue of any securlLy or forelgn securlLy by any branch, offlce or agency ln lndla of a
person resldenL ouLslde lndla,
(d) any borrowlng or lendlng ln rupees ln whaLever form or by whaLever name called,
(e) any borrowlng or lendlng ln rupees ln whaLever form or by whaLever name called beLween a
person resldenL ln lndla and a person resldenL ouLslde lndla,
(f) deposlLs beLween persons resldenL ln lndla and persons resldenL ouLslde lndla,
(g) exporL, lmporL or holdlng of currency or currency noLes,
(h) Lransfer of lmmovable properLy ouLslde lndla, oLher Lhan a lease noL exceedlng flve years, by a
person resldenL ln lndla,
(l) acqulslLlon or Lransfer of lmmovable properLy ln lndla, oLher Lhan a lease noL exceedlng flve
years, by a person resldenL ouLslde lndla,
([) glvlng of a guaranLee or sureLy ln respecL of any debL, obllgaLlon or oLher llablllLy lncurred-

(l) by a person resldenL ln lndla and owed Lo a person resldenL ouLslde lndla, or
(ll)by a person resldenL ouLslde lndla.

(4) A person resldenL ln lndla may hold, own, Lransfer or lnvesL ln forelgn currency, forelgn securlLy
or any lmmovable properLy slLuaLed ouLslde lndla lf such currency, securlLy or properLy was
acqulred, held or owned by such person when he was resldenL ouLslde lndla or lnherlLed from a
person who was resldenL ouLslde lndla.

(3) A person resldenL ouLslde lndla may hold, own, Lransfer or lnvesL ln lndlan currency, securlLy or
any lmmovable properLy slLuaLed ln lndla lf such currency, securlLy or properLy was acqulred, held or
owned by such person when he was resldenL ln lndla or lnherlLed from a person who was resldenL ln
lndla.

(6) WlLhouL pre[udlce Lo Lhe provlslons of Lhls secLlon, Lhe 8eserve 8ank may, by regulaLlon, prohlblL,
resLrlcL, or regulaLe esLabllshmenL ln lndla of a branch, offlce or oLher place of buslness by a person
resldenL ouLslde lndla, for carrylng on any acLlvlLy relaLlng Lo such branch, offlce or oLher place of
buslness.

7. Lxport of goods and serv|ces.- (1) Lvery exporLer of goods shall-

(a) furnlsh Lo Lhe 8eserve 8ank or Lo such oLher auLhorlLy a declaraLlon ln such form and ln such
manner as may be speclfled, conLalnlng Lrue and correcL maLerlal parLlculars, lncludlng Lhe
amounL represenLlng Lhe full exporL value or, lf Lhe full exporL value of Lhe goods ls noL ascerLalnable
aL Lhe Llme of exporL, Lhe value whlch Lhe exporLer, havlng regard Lo Lhe prevalllng markeL
condlLlons, expecLs Lo recelve on Lhe sale of Lhe goods ln a markeL ouLslde lndla,

(b) furnlsh Lo Lhe 8eserve 8ank such oLher lnformaLlon as may be requlred by Lhe 8eserve 8ank for
Lhe purpose of ensurlng Lhe reallzaLlon of Lhe exporL proceeds by such exporLer.

(2) 1he 8eserve 8ank may, for Lhe purpose of ensurlng LhaL Lhe full exporL value of Lhe goods or
such reduced value of Lhe goods as Lhe 8eserve 8ank deLermlnes, havlng regard Lo Lhe prevalllng
markeL condlLlons, ls recelved wlLhouL any delay, dlrecL any exporLer Lo comply wlLh such
requlremenLs as lL deems flL.

(3) Lvery exporLer of servlces shall furnlsh Lo Lhe 8eserve 8ank or Lo such oLher auLhorlLles a
declaraLlon ln such form and ln such manner as may be speclfled, conLalnlng Lhe Lrue and correcL
maLerlal parLlculars ln relaLlon Lo paymenL for such servlces.

8. kea||zat|on and repatr|at|on of fore|gn exchange.- Save as oLherwlse provlded ln Lhls AcL, where
any amounL of forelgn exchange ls due or has accrued Lo any person resldenL ln lndla, such person
shall Lake all reasonable sLeps Lo reallze and repaLrlaLe Lo lndla such forelgn exchange wlLhln such
perlod and ln such manner as may be speclfled by Lhe 8eserve 8ank.

9. Lxempt|on from rea||zat|on and repatr|at|on |n certa|n cases.- 1he provlslons of secLlons 4 and 8
shall noL apply Lo Lhe followlng, namely:-

(a) possesslon of forelgn currency or forelgn colns by any person up Lo such llmlL as Lhe 8eserve
8ank may speclfy,
(b) forelgn currency accounL held or operaLed by such person or class of persons and Lhe llmlL up
Lo whlch Lhe 8eserve 8ank may speclfy,
(c) forelgn exchange acqulred or recelved before Lhe 8Lh day of !uly, 1947 or any lncome arlslng or
accrulng Lhereon whlch ls held ouLslde lndla by any person ln pursuance of a general or speclal
permlsslon granLed by Lhe 8eserve 8ank,
(d) forelgn exchange held by a person resldenL ln lndla up Lo such llmlL as Lhe 8eserve 8ank may
speclfy, lf such forelgn exchange was acqulred by way of glfL or lnherlLance from a person
referred Lo ln clause (c), lncludlng any lncome arlslng Lhere from,
(e) forelgn exchange acqulred from employmenL, buslness, Lrade, vocaLlon, servlces, honorarlum,
glfLs, lnherlLance or any oLher leglLlmaLe means up Lo such llmlL as Lhe 8eserve 8ank may speclfy,
and
(f) such oLher recelpLs ln forelgn exchange as Lhe 8eserve 8ank may speclfy.

CnA1Lk III
AU1nCkISLD LkSCN

10. Author|sed person.-(1) 1he 8eserve 8ank may, on an appllcaLlon made Lo lL ln Lhls behalf,
auLhorlze any person Lo be known as auLhorlzed person Lo deal ln forelgn exchange or ln forelgn
securlLles, as an auLhorlzed dealer, money changer or off-shore banklng unlL or ln any oLher manner
as lL deems flL.

(2) An auLhorlzaLlon under Lhls secLlon shall be ln wrlLlng and shall be sub[ecL Lo Lhe condlLlons lald
down Lhereln.

(3) An auLhorlzaLlon granLed under sub-secLlon (1) may be revoked by Lhe 8eserve 8ank aL any Llme
lf Lhe 8eserve 8ank ls saLlsfled LhaL-
(a) lL ls ln publlc lnLeresL so Lo do, or
(b) Lhe auLhorlzed person has falled Lo comply wlLh Lhe condlLlon sub[ecL Lo whlch Lhe auLhorlzaLlon
was granLed or has conLravened any of Lhe provlslons of Lhe AcL or any rule, regulaLlon, noLlflcaLlon,
dlrecLlon or order made Lhere under:

rovlded LhaL no such auLhorlzaLlon shall be revoked on any ground referred Lo ln clause (b) unless
Lhe auLhorlzed person has been glven a reasonable opporLunlLy of maklng a represenLaLlon ln Lhe
maLLer

(4) An auLhorlzed person shall, ln all hls deallngs ln forelgn exchange or forelgn securlLy, comply wlLh
such general or speclal dlrecLlons or orders as Lhe 8eserve 8ank may, from Llme Lo Llme, Lhlnk flL Lo
glve, and, excepL wlLh Lhe prevlous permlsslon f Lhe 8eserve 8ank, an auLhorlzed person shall noL
engage ln any LransacLlon lnvolvlng any forelgn exchange or forelgn securlLy whlch ls noL ln
conformlLy wlLh Lhe Lerms of hls auLhorlzaLlon under Lhls secLlon.

(3) An auLhorlzed person shall, before underLaklng any LransacLlon ln forelgn exchange on behalf of
any person, requlre LhaL person Lo make such declaraLlon and Lo glve such lnformaLlon as wlll
reasonably saLlsfy hlm LhaL Lhe LransacLlon wlll noL lnvolve and ls noL deslgned for Lhe purpose of
any conLravenLlon or evaslon of Lhe provlslons of Lhls AcL or of any rule, regulaLlon, noLlflcaLlon,
dlrecLlon or order made Lhere under, and where Lhe sald person refuses Lo comply wlLh any such
requlremenL or make only unsaLlsfacLory compllance LherewlLh, Lhe auLhorlzed person shall refuse
ln wrlLlng Lo underLake Lhe LransacLlon and shall, lf he has reason Lo belleve LhaL any such
conLravenLlon or evaslon as aforesald ls conLemplaLed by Lhe person, reporL Lhe maLLer Lo Lhe
8eserve 8ank.

(6) Any person, oLher Lhan an auLhorlzed person, who has acqulred or purchased forelgn exchange
for any purpose menLloned ln Lhe declaraLlon made by hlm Lo auLhorlzed person under sub-secLlon
(3) does noL use lL for such purpose or does noL surrender lL Lo auLhorlzed person wlLhln Lhe
speclfled perlod or uses Lhe forelgn exchange so acqulred or purchased for any oLher purpose for
whlch purchase or acqulslLlon or forelgn exchange ls noL permlsslble under Lhe provlslons of Lhe AcL
or Lhe rules or regulaLlons or dlrecLlon or order made Lhere under shall be deemed Lo have
commlLLed conLravenLlon of Lhe provlslons of Lhe AcL for Lhe purpose of Lhls secLlon.

11. keserve 8ank's powers to |ssue d|rect|ons to author|sed person.-(1) 1he reserve 8ank may, for
Lhe purpose of securlng compllance wlLh Lhe provlslons of Lhls AcL and of any rules, regulaLlons,
noLlflcaLlons or dlrecLlons made Lhere under, glve Lo Lhe auLhorlsed persons any dlrecLlon ln regard
Lo maklng of paymenL or Lhe dolng or deslsL from dolng any acL relaLlng Lo forelgn exchange or
forelgn securlLy.

(2) 1he 8eserve 8ank may, for Lhe purpose of ensurlng Lhe compllance wlLh Lhe provlslons of Lhls AcL
or of any rule, regulaLlon, noLlflcaLlon, dlrecLlon or order made Lhere under, dlrecL any auLhorlsed
person Lo furnlsh such lnformaLlon, ln such manner, as lL deems flL.

(3) Where any auLhorlsed person conLravenes any dlrecLlon glven by Lhe 8eserve 8ank under Lhls
AcL or falls Lo flle any reLurn as dlrecLed by Lhe 8eserve 8ank, Lhe 8eserve 8ank may, afLer glvlng
reasonable opporLunlLy of belng heard, lmpose on Lhe auLhorlzed person a penalLy whlch may
exLend Lo Len Lhousand rupees and ln Lhe case of conLlnulng conLravenLlon wlLh an addlLlonal
penalLy whlch may exLend Lo Lwo Lhousand rupees for every day durlng whlch such conLravenLlon
conLlnues.

12. ower of keserve 8ank to |nspect author|sed person.-(1) 1he 8eserve 8ank may, aL any Llme,
cause an lnspecLlon Lo be made, by any offlcer of Lhe 8eserve 8ank speclally auLhorlsed ln wrlLlng by
Lhe 8eserve 8ank ln Lhls behalf, of Lhe buslness of any a auLhorlsed person as may appear Lo lL Lo be
necessary or expedlenL for Lhe purpose of-
(a) verlfylng Lhe correcLness of any sLaLemenL, lnformaLlon or parLlculars furnlshed Lo Lhe 8eserve
8ank,
(b) obLalnlng any lnformaLlon or parLlculars whlch such auLhorlsed person has falled Lo furnlsh on
belng called upon Lo do so,
(c) securlng compllance wlLh Lhe provlslons of Lhls AcL or of any rules, regulaLlons, dlrecLlons or
orders made Lhere under.

(2) lL shall be Lhe duLy of every auLhorlsed person, and where such person ls a company or a flrm,
every dlrecLor, parLner or oLher offlcer of such company or flrm, as Lhe case may be, Lo produce Lo
any offlcer maklng an lnspecLlon under sub-secLlon (1), such books, accounLs and oLher documenLs
ln hls cusLody or power and Lo furnlsh any sLaLemenL or lnformaLlon relaLlng Lo Lhe affalrs of such
person, company or flrm as Lhe sald offlcer may requlre wlLhln such Llme and ln such manner as
Lhe sald offlcer my dlrecL.

CnA1Lk IV
CCN1kAVLN1ICN AND LNAL1ILS

13. ena|t|es.-(1) lf any person conLravenes any provlslon of Lhls AcL, or conLravenes any rule,
regulaLlon, noLlflcaLlon, dlrecLlon or order lssued ln exerclse of Lhe powers under Lhls AcL, or
conLravenes any condlLlon sub[ecL Lo whlch an auLhorlzaLlon s lssued by Lhe 8eserve 8ank, he shall,
upon ad[udlcaLlon, be llable Lo a penalLy up Lo Lhrlce Lhe sum lnvolved ln such conLravenLlon where
such amounL ls quanLlflable, or up Lo Lwo lakh rupees where Lhe amounL ls noL quanLlflable, and
where such conLravenLlon ls a conLlnulng one, furLher penalLy whlch may exLend Lo flve Lhousand
rupees for every day afLer Lhe flrsL day durlng whlch Lhe conLravenLlon conLlnues.

(2) Any Ad[udlcaLlng AuLhorlLy ad[udglng any conLravenLlon under sub-secLlon (1), may, lf he Lhlnks
flL ln addlLlon Lo any penalLy whlch he may lmpose for such conLravenLlon dlrecL LhaL any currency,
securlLy or any oLher money or properLy ln respecL of whlch Lhe conLravenLlon has Laken place shall
be conflscaLed Lo Lhe CenLral CovernmenL and furLher dlrecL LhaL Lhe forelgn exchange holdlngs, lf
any, of Lhe persons commlLLlng Lhe conLravenLlons or any parL Lhereof, shall be broughL back lnLo
lndla or she l be reLalned ouLslde lndla ln accordance wlLh Lhe dlrecLlons made ln Lhls behalf.

LxplanaLlon.- lor Lhe purposes of Lhls sub-secLlon, "properLy" ln respecL of whlch conLravenLlon has
Laken place, shall lnclude-

(a) deposlLs ln a bank, where Lhe sald properLy ls converLed lnLo such deposlLs,
(b) lndlan currency, where Lhe sald properLy ls converLed lnLo LhaL currency, and
(c) any oLher properLy whlch has resulLed ouL of Lhe converslon of LhaL properLy.

14. Lnforcement of the orders of Ad[ud|cat|ng Author|ty.-(1) Sub[ecL Lo Lhe provlslons of sub-
secLlon (2) of secLlon 19, lf any person falls Lo make full paymenL of Lhe penalLy lmposed on hlm
under secLlon 13 wlLhln a perlod of nlneLy days from Lhe daLe on whlch Lhe noLlce for paymenL of
such penalLy ls served on hlm, he shall be llable Lo clvll lmprlsonmenL under Lhls secLlon.

(2) no order for Lhe arresL and deLenLlon ln clvll prlson of a defaulLer shall be made unless Lhe
Ad[udlcaLlon AuLhorlLy has lssued and served a noLlce upon Lhe defaulLer calllng upon hlm Lo appear
before hlm on Lhe daLe speclfled ln Lhe noLlce and Lo show cause why he should noL be commlLLed
Lo Lhe clvll prlson, and unless Lhe Ad[udlcaLlng AuLhorlLy, for reasons ln wrlLlng, ls saLlsfled-

(a) LhaL Lhe defaulLer, wlLh Lhe ob[ecL or effecL of obsLrucLlng Lhe recovery of penalLy, has afLer Lhe
lssue of noLlce by Lhe Ad[udlcaLlng AuLhorlLy, dlshonesLly Lransferred, concealed, or removed any
parL of hls properLy, or

(b) LhaL Lhe defaulLer has, or has had slnce Lhe lssulng of noLlce by Lhe Ad[udlcaLlng AuLhorlLy, Lhe
means Lo pay Lhe arrears or some subsLanLlal parL Lhereof and refuses or neglecLs or has refused or
neglecLed Lo pay Lhe same.

(3) noLwlLhsLandlng anyLhlng conLalned ln sub-secLlon (1), a warranL for Lhe arresL of Lhe defaulLer
may be lssued by Lhe Ad[udlcaLlng AuLhorlLy lf Lhe Ad[udlcaLlng AuLhorlLy ls saLlsfled, by affldavlL or
oLherwlse, LhaL wlLh Lhe ob[ecL or effecL of delaylng Lhe execuLlon of Lhe cerLlflcaLe Lhe defaulLer ls
llkely Lo abscond or leave Lhe local llmlLs of Lhe [urlsdlcLlon of Lhe Ad[udlcaLlng AuLhorlLy.

(4) Where appearance ls noL made pursuanL Lo a noLlce lssued and served under sub-secLlon (1), Lhe
Ad[udlcaLlng AuLhorlLy may lssue a warranL for Lhe arresL of Lhe defaulLer.

(3) A warranL of arresL lssued by Lhe Ad[udlcaLlng AuLhorlLy under sub-secLlon (3) or sub-secLlon (4)
may also be execuLed by any oLher Ad[udlcaLlng AuLhorlLy wlLhln whose [urlsdlcLlon Lhe defaulLer
may for Lhe Llme belng be found.

(6) Lvery person arresLed ln pursuance of a warranL of arresL under Lhls secLlon shall be broughL
before Lhe Ad[udlcaLlng AuLhorlLy lssulng Lhe warranL as soon as pracLlcable and ln any evenL wlLhln
LwenLy-four hours of hls arresL (excluslve of Lhe Llme enqulred for Lhe [ourney):

rovlded LhaL, lf Lhe defaulLer pays Lhe amounL enLered ln Lhe warranL of arresL as due and Lhe
cosLs of Lhe arresL Lo Lhe offlcer arresLlng hlm, such offlcer shall aL once release hlm.

LxplanaLlon.-lor Lhe purposes of Lhls sub-secLlon, where Lhe defaulLer ls a Plndu undlvlded famlly,
Lhe karLa Lhereof shall be deemed Lo be Lhe defaulLer.

(7) When a defaulLer appears before Lhe Ad[udlcaLlng AuLhorlLy pursuanL Lo a noLlce Lo show cause
or ls broughL before Lhe Ad[udlcaLlng AuLhorlLy under Lhls secLlon, Lhe Ad[udlcaLlng AuLhorlLy shall
glve Lhe defaulLer an opporLunlLy showlng cause why he should noL be commlLLed Lo Lhe clvll prlson.

(8) endlng Lhe concluslon of Lhe lnqulry, Lhe Ad[udlcaLlng AuLhorlLy may, ln hls dlscreLlon, order Lhe
defaulLer Lo be deLalned ln Lhe cusLody of such offlcer as Lhe Ad[udlcaLlng AuLhorlLy may Lhlnk flL or
release hlm on hls furnlshlng Lhe securlLy Lo L e saLlsfacLlon of Lhe Ad[udlcaLlng AuLhorlLy for hls
appearance as and when requlred.

(9) upon Lhe concluslon of Lhe lnqulry, Lhe Ad[udlcaLlng auLhorlLy may make an order for Lhe
deLenLlon of Lhe defaulLer ln Lhe clvll prlson and shall ln LhaL evenL cause hlm Lo be arresLed lf he ls
noL already under arresL: rovlde LhaL ln order Lo glve a defaulLer an opporLunlLy of saLlsfylng Lhe
arrears, Lhe Ad[udlcaLlng AuLhorlLy may, before maklng Lhe order of deLenLlon, leave Lhe defaulLer ln
Lhe cusLody of Lhe offlcer arresLlng hlm or of any oLher offlcer for a speclfled perlod noL exceedlng
flfLeen days, or release hlm on hls furnlshlng securlLy Lo Lhe saLlsfacLlon of Lhe Ad[udlcaLlng
AuLhorlLy for hls appearance aL Lhe explraLlon of Lhe speclfled perlod lf Lhe arrears are noL saLlsfled.

(10) When Lhe Ad[udlcaLlng AuLhorlLy does noL make an order of deLenLlon under sub-secLlon (9),
he shall, lf Lhe defaulLer ls under arresL, dlrecL hls release.

(11) Lvery person deLalned ln Lhe clvll prlson ln execuLlon of Lhe cerLlflcaLe may be so deLalned,-

(a) where Lhe cerLlflcaLe ls for a demand of an amounL exceedlng rupees one crore, up Lo Lhree
years, and

(b) ln any oLher case, up Lo slx monLhs:

rovlded LhaL he shall be released from such deLenLlon on Lhe amounL menLloned ln Lhe warranL
for hls deLenLlon belng pald Lo Lhe offlcer-ln-charge of Lhe clvll prlson.

(12) A defaulLer released from deLenLlon under Lhls secLlon shall noL, merely by reason of hls
release, be dlscharged from hls llablllLy for Lhe arrears, buL he shall noL be llable Lo be arresLed
under Lhe cerLlflcaLe ln execuLlon of whlch he was deLalned ln Lhe clvll prlson.

(13) A deLenLlon order may be execuLed aL any place ln lndla ln Lhe manner provlded for Lhe
execuLlon of warranL of arresL under Lhe Code of Crlmlnal rocedure, 1973 (2 of 1974).

1S. ower to compound contravent|on.-(1) Any conLravenLlon under secLlon 13 may, on an
appllcaLlon made by Lhe person commlLLlng such conLravenLlon, be compounded wlLhln one
hundred and elghLy days from Lhe daLe of recelpL of appllcaLlon by Lhe ulrecLor of LnforcemenL or
such oLher offlcers of Lhe ulrecLoraLe of LnforcemenL and offlcers of Lhe 8eserve 8ank as may be
auLhorlzed ln Lhls behalf by Lhe CenLral CovernmenL ln such manner as may be prescrlbed.

(2) Where a conLravenLlon has been compounded under sub-secLlon (1), no proceedlng or furLher
proceedlng, as Lhe case may be, shall be lnlLlaLed or conLlnued, as Lhe case may be, agalnsL Lhe
commlLLlng such conLravenLlon under LhaL secLlon, ln respecL of Lhe conLravenLlon so compounded.

CnA1Lk V
ADIUDICA1ICN AND ALAL

16. Appo|ntment of Ad[ud|cat|ng Author|ty.-(1) lor Lhe purpose of ad[udlcaLlon under secLlon 13,
Lhe CenLral CovernmenL may, by an order publlshed ln Lhe Cfflclal CazeLLe, appolnL as many offlcers
of Lhe CenLral CovernmenL as lL may Lhlnk flL, as Lhe Ad[udlcaLlng AuLhorlLles for holdlng an lnqulry
ln Lhe manner prescrlbed afLer glvlng Lhe person alleged Lo have commlLLed conLravenLlon under
secLlon 13, agalnsL whom a complalnL has been made under sub-secLlon (3) (herelnafLer ln Lhls
secLlon referred Lo Lhe sald person) a reasonable opporLunlLy of belng heard for Lhe purpose of
lmposlng any penalLy:

rovlded LhaL where Lhe Ad[udlcaLlng AuLhorlLy ls of oplnlon LhaL Lhe sald person ls llkely Lo abscond
or ls llkely Lo evade ln any manner, Lhe paymenL of penalLy, lf levled, lL may dlrecL Lhe sald person Lo
furnlsh a bond or guaranLee for such amounL an sub[ecL Lo such condlLlons as lL may deem flL.

(2) 1he CenLral CovernmenL shall, whlle appolnLlng Lhe Ad[udlcaLlng AuLhorlLles under sub-secLlon
(1), also speclfy ln Lhe order publlshed ln Lhe Cfflclal CazeLLe, Lhelr respecLlve [urlsdlcLlons.

(3) no Ad[udlcaLlng AuLhorlLy shall hold an enqulry under sub-secLlon (1) excepL upon a complalnL ln
wrlLlng made by any offlcer auLhorlsed by a general or speclal order by Lhe CenLral CovernmenL.

(4) 1he sald person may appear elLher ln person or Lake Lhe asslsLance of a legal pracLlLloner or a
charLered accounLanL of hls cholce for presenLlng hls case before Lhe Ad[udlcaLlng AuLhorlLy.

(3) Lvery Ad[udlcaLlng AuLhorlLy shall have Lhe same powers of a clvll courL whlch are conferred on
Lhe AppellaLe 1rlbunal under sub-secLlon (2) of secLlon 28 and-

(a) all proceedlngs before lL shall be deemed Lo be [udlclal proceedlngs wlLhln Lhe meanlng of
secLlons 193 and 228 of Lhe lndlan enal Code (43 of 1860),

(b) shall be deemed Lo be a clvll courL for Lhe purposes of secLlons 343 and 346 of Lhe Code of
Crlmlnal rocedure, 1973 (2of 1974)

(6) Lvery Ad[udlcaLlng AuLhorlLy shall deal wlLh Lhe complalnL under sub-secLlon (2) as expedlLlously
as posslble and endeavour shall be made Lo dlspose of Lhe complalnL flnally wlLhln one year from Lhe
daLe of recelpL of Lhe complalnL:

rovlded LhaL where Lhe complalnL cannoL be dlsposed of wlLhln Lhe sald perlod, Lhe Ad[udlcaLlng
AuLhorlLy shall record perlodlcally Lhe reasons ln wrlLlng for noL dlsposlng of Lhe complalnL wlLhln
Lhe sald perlod.

17. Appea| to Spec|a| D|rector (Appea|s):- (1) 1he CenLral CovernmenL shall, by noLlflcaLlon, appolnL
one or more Speclal ulrecLors (Appeals) Lo hear appeals agalnsL Lhe orders of Lhe Ad[udlcaLlng
AuLhorlLles under Lhls secLlon and shall also speclfy ln Lhe sald noLlflcaLlon Lhe maLLer and places ln
relaLlon Lo whlch Lhe Speclal ulrecLor (Appeals) may exerclse [urlsdlcLlon.

(2) Any person aggrleved by an order made by Lhe Ad[udlcaLlng AuLhorlLy, belng an AsslsLanL
ulrecLor or LnforcemenL or a uepuLy ulrecLor of LnforcemenL, may prefer an appeal Lo Lhe
Speclal ulrecLor (Appeals).

(3) Lvery appeal under sub-secLlon (1) shall be flled wlLhln forLy-flve days from Lhe daLe on whlch
Lhe copy of Lhe order made by Lhe Ad[udlcaLlng AuLhorlLy ls recelved by Lhe aggrleved person and lL
shall be ln such form, verlfled ln such manner and be accompanled by such fee as may be prescrlbed:

rovlded LhaL Lhe Speclal ulrecLor (Appeals) may enLerLaln an appeal afLer Lhe explry of Lhe sald
perlod of forLy-flve days, lf he ls saLlsfled LhaL Lhere was sufflclenL cause for noL flllng lL wlLhln LhaL
perlod.

(4) Cn recelpL of an appeal under sub-secLlon (1), Lhe Speclal ulrecLor (Appeals) may afLer glvlng
Lhe parLles Lo Lhe appeal an opporLunlLy of belng heard, pass such order Lhereon as he Lhlnks flL,
conflrmlng, modlfylng or seLLlng aslde Lhe order appealed agalnsL.

(3) 1he Speclal ulrecLor (Appeals) shall send a copy of every order made by hlm Lo Lhe parLles Lo
appeal and Lo Lhe concerned Ad[udlcaLlng AuLhorlLy.

(6) 1he Speclal ulrecLor (Appeals) shall have Lhe same powers of a clvll courL whlch are conferred
on Lhe AppellaLe 1rlbunal under sub-secLlon (2) of secLlon 28 and -

(a) all proceedlngs before hlm shall be deemed Lo be [udlclal proceedlngs wlLhln Lhe meanlng of
secLlons 193 and 228 of Lhe lndlan enal Code,

(b) shall be deemed Lo be a clvll courL for Lhe purposes of secLlons 343 and 346 of Lhe Code of
Crlmlnal rocedure, 1973 (2 of 1974).

18. Lstab||shment of Appe||ate 1r|buna|: 1he CenLral CovernmenL shall, by noLlflcaLlon, esLabllsh an
appellaLe 1rlbunal Lo be known as Lhe AppellaLe 1rlbunal for lorelgn Lxchange Lo hear appeals
agalnsL Lhe orders of Lhe Ad[udlcaLlng AuLhorlLles and Lhe Speclal ulrecLor (Appeals) under Lhls AcL.

19.Appea| to Appe||ate 1r|buna|: (1) Save as provlded ln sub-secLlon (2), Lhe CenLral CovernmenL
or any person aggrleved by an order made by an Ad[udlcaLlng AuLhorlLy, oLher Lhan Lhose referred
Lo ln sub-secLlon (1) of secLlon 17, or Lhe Speclal ulrecLor (Appeals), may prefer an appeal Lo Lhe
AppellaLe 1rlbunal :
rovlded LhaL any person appeallng agalnsL Lhe order of Lhe Ad[udlcaLlng AuLhorlLy or Lhe Speclal
ulrecLor (Appeals) levylng any penalLy, shall whlle flllng Lhe appeal, deposlL Lhe amounL of such
penalLy wlLh such auLhorlLy as may be noLlfled by Lhe CenLral CovernmenL:

rovlded furLher LhaL where ln any parLlcular case, Lhe AppellaLe 1rlbunal ls of Lhe oplnlon LhaL Lhe
deposlL of such penalLy would cause undue hardshlp Lo such person, Lhe AppellaLe 1rlbunal may
dlspense wlLh such deposlL sub[ecL Lo such condlLlons as lL may deem flL Lo lmpose so as Lo
safeguard Lhe reallsaLlon of penalLy.

(2) Lvery appeal under sub-secLlon (1) shall be flled wlLhln a perlod of forLy-flve days from Lhe daLe
on whlch a copy of Lhe order made by Lhe Ad[udlcaLlng AuLhorlLy or Lhe Speclal ulrecLor (Appeals) ls
recelved by Lhe aggrleved person or by Lhe CenLral CovernmenL and lL shall be ln such form, verlfled
ln such manner and be accompanled by such fee as may be prescrlbed :

rovlded LhaL Lhe AppellaLe 1rlbunal may enLerLaln an appeal afLer Lhe explry of Lhe sald perlod of
forLy-flve days lf lL ls saLlsfled LhaL Lhere was sufflclenL cause for noL flllng lL wlLhln LhaL perlod.

(3) Cn recelpL of an appeal under sub-secLlon (1), Lhe AppellaLe 1rlbunal may, afLer glvlng Lhe parLles
Lo Lhe appeal an opporLunlLy of belng heard, pass such orders Lhereon as lL Lhlnks flL, conflrmlng,
modlfylng or seLLlng aslde Lhe order appealed agalnsL.

(4) 1he AppellaLe 1rlbunal shall send a copy of every order made by lL Lo Lhe parLles Lo Lhe appeal
and Lo Lhe concerned Ad[udlcaLlng AuLhorlLy or Lhe Speclal ulrecLor (Appeals), as Lhe case may be.

(3) 1he appeal flled before Lhe AppellaLe 1rlbunal under sub-secLlon (1) shall be dealL wlLh by lL as
expedlLlously as posslble and endeavour shall be made by lL Lo dlspose of Lhe appeal flnally wlLhln
one hundred and elghLy days from Lhe daLe of recelpL of Lhe appeal:

rovlded LhaL where any appeal could noL be dlsposed of wlLhln Lhe sald perlod of one hundred and
elghLy days, Lhe AppellaLe 1rlbunal shall record lLs reasons ln wrlLlng for noL dlsposlng off Lhe appeal
wlLhln Lhe sald perlod.

(6) 1he AppellaLe 1rlbunal may, for Lhe purpose of examlnlng Lhe legallLy, proprleLy or correcLness of
any order made by Lhe Ad[udlcaLlng AuLhorlLy under secLlon 16 ln relaLlon Lo any proceedlng, on lLs
own moLlon or oLherwlse, call for Lhe records of such proceedlngs and make such order ln Lhe case
as lL Lhlnks flL.

20. Compos|t|on of Appe||ate 1r|buna|: (1) 1he AppellaLe 1rlbunal shall conslsL of a Chalrperson
and such number of Members as Lhe CenLral CovernmenL may deem flL.

(2) Sub[ecL Lo Lhe provlslons of Lhls AcL,-
(a) Lhe [urlsdlcLlon of Lhe AppellaLe 1rlbunal may be exerclsed by 8enches Lhereof,
(b) a bench may be consLlLuLed by Lhe Chalrperson wlLh one or more Members as Lhe Chalrperson
may deem flL,

Lhe 8enches of Lhe AppellaLe 1rlbunal shall ordlnarlly slL aL new uelhl and aL such oLher places
as Lhe CenLral CovernmenL may, ln consulLaLlon wlLh Lhe Chalrperson, noLlfy,

(d) Lhe CenLral CovernmenL shall noLlfy Lhe areas ln relaLlon Lo whlch each 8ench of Lhe AppellaLe
1rlbunal may exerclse [urlsdlcLlon.

(3) noLwlLhsLandlng anyLhlng conLalned ln sub-secLlon (2), Lhe Chalrperson may Lransfer a Member
from one 8ench Lo anoLher 8ench.

(4) lf aL any sLage of Lhe hearlng of any case or maLLer lL appears Lo Lhe Chalrperson or a Member
LhaL Lhe case or maLLer ls of such a naLure LhaL lL oughL Lo be heard by a 8ench conslsLlng of Lwo
Members, Lhe case or maLLer may be Lransferred by Lhe Chalrperson or, as Lhe case may be, referred
Lo hlm for Lransfer, Lo such 8ench as Lhe Chalrperson may deem flL.

21. ua||f|cat|ons for appo|ntment of Cha|rperson, Member and Spec|a| D|rector (Appea|s):

(1) A person shall noL be quallfled for appolnLmenL as Lhe Chalrperson or a Member unless he-
(a) ln Lhe case of Chalrperson, ls or has been, or ls quallfled Lo be, a !udge of a Plgh CourL, and
(b) ln Lhe case of a Member, ls or has been, or ls quallfled Lo be, a ulsLrlcL !udge.

(2) A person shall noL be quallfled for appolnLmenL as a Speclal ulrecLor (Appeals) unless he-
(a) has been a member of Lhe lndlan Legal Servlce and has held a posL ln Crade l of LhaL Servlce, or
(b) has been a member of Lhe lndlan 8evenue Servlce and has held a posL equlvalenL Lo a !olnL
SecreLary Lo Lhe CovernmenL of lndla.

22.1erms of Cff|ce: 1he Chalrperson and every oLher Member shall hold offlce as such for a Lerm of
flve years from Lhe daLe on whlch he enLers upon hls offlce,

rovlded LhaL no Chalrperson or oLher Member shall hold offlce as such afLer he has aLLalned-
(a) ln Lhe case of Lhe Chalrperson, Lhe age of slxLy-flve years,
(b) ln Lhe case of any oLher Member, Lhe age of slxLy-Lwo years.

23. 1erms and cond|t|ons of serv|ce: 1he salary and allowances payable Lo and Lhe oLher Lerms and
condlLlons of servlce of Lhe Chalrperson oLher Members and Lhe Speclal ulrecLor (Appeals) Shall be
such as may be prescrlbed,
rovlded LhaL nelLher Lhe salary and allowances nor Lhe oLher Lerms and condlLlons of servlce of Lhe
Chalrperson or a Member shall be varled Lo hls dlsadvanLage afLer appolnLmenL.

24. Vacanc|es: lf, for reason oLher Lhan Lemporary absence, any vacancy occurs ln Lhe offlce of Lhe
Chalrperson or a Member, Lhe CenLral CovernmenL shall appolnL anoLher person ln accordance wlLh
Lhe provlslons of Lhls AcL Lo flll Lhe vacancy and Lhe proceedlngs may be conLlnued before Lhe
AppellaLe 1rlbunal from Lhe sLage aL whlch Lhe vacancy ls fllled.

2S. kes|gnat|on and remova|: (1) 1he Chalrperson or a Member may, by noLlce ln wrlLlng under hls
hand addressed Lo Lhe CenLral CovernmenL, reslgn hls offlce,
rovlded LhaL Lhe Chalrperson or a Member shall, unless he ls permlLLed by Lhe CenLral
CovernmenL Lo rellnqulsh hls offlce sooner, conLlnue Lo hold offlce unLll Lhe explry of Lhree monLhs
from Lhe daLe of recelpL of such noLlce or unLll a person duly appolnLed as hls successor enLers upon
hls offlce or unLll Lhe explry of Lerm of offlce, whlchever ls Lhe earllesL.

(2) 1he Chalrperson or a Member shall noL be removed from hls offlce excepL by an order by Lhe
CenLral CovernmenL on Lhe ground of proved mlsbehavlour or lncapaclLy afLer an lnqulry made by
such person as Lhe resldenL may appolnL for Lhls purpose ln whlch Lhe Chalrperson or a Member
concerned has been lnformed of Lhe charges agalnsL hlm and glven a reasonable opporLunlLy of
belng heard ln respecL of such charges.

26. Member to act as Cha|rperson |n certa|n c|rcumstances: (1) ln Lhe evenL of Lhe occurrence of
any vacancy ln Lhe offlce of Lhe Chalrperson by reason of hls deaLh, reslgnaLlon or oLherwlse, Lhe
senlor-mosL Member shall acL as Lhe Chalrperson unLll Lhe daLe on whlch a new Chalrperson,
appolnLed ln accordance wlLh Lhe provlslons of Lhls AcL Lo flll such vacancy, enLers upon hls offlce.

(2) When Lhe Chalrperson ls unable Lo dlscharge hls funcLlons owlng Lo absence, lllness or any
oLher cause, Lhe senlor-mosL Member shall dlscharge Lhe funcLlons of Lhe Chalrperson unLll Lhe
daLe on whlch Lhe Chalrperson resumes hls duLles.

27. Staff of Appe||ate 1r|buna| and Spec|a| D|rector (Appea|s): (1) 1he CenLral CovernmenL shall
provlde Lhe AppellaLe 1rlbunal and Lhe Speclal ulrecLor(Appeals) wlLh such offlcers and employees
as lL may deem flL.
(2) 1he offlcers and employees of Lhe AppellaLe 1rlbunal and offlce of Lhe Speclal ulrecLor
(Appeals) shall dlscharge Lhelr funcLlons under Lhe general superlnLendence of Lhe Chalrperson
and Lhe Speclal ulrecLor (Appeals), as Lhe case may be.
(3) 1he salarles and allowances and oLher condlLlons of servlce of Lhe offlcers and employees of Lhe
AppellaLe 1rlbunal and offlce of Lhe Speclal ulrecLor (Appeals) shall be such as may be prescrlbed.

28. rocedure and powers of Appe||ate 1r|buna| and Spec|a| D|rector (Appea|s).
(1) 1he AppellaLe 1rlbunal and Lhe Speclal ulrecLor (Appeals) shall noL be bound by Lhe procedure
lald down by Lhe Code of Clvll rocedure, 1908, buL shall be gulded by Lhe prlnclples of naLural
[usLlce and, sub[ecL Lo Lhe oLher provlslons of Lhls AcL, Lhe AppellaLe 1rlbunal and Lhe
Speclal ulrecLor (Appeals) shall have powers Lo regulaLe lLs own procedure.

(2) 1he appellaLe 1rlbunal and Lhe Speclal ulrecLor (Appeals) shall have, for Lhe purposes of
dlscharglng lLs funcLlons under Lhls AcL, Lhe same powers as are vesLed ln a clvll courL under Lhe
Code of Clvll rocedure, 1908 whlle Lrylng a sulL, ln respecL of Lhe followlng maLLers, namely:-
(a)summonlng and enforclng Lhe aLLendance of any person and examlnlng hlm on oaLh,
(b) requlrlng Lhe dlscovery and producLlon of documenLs,
(c) recelvlng evldence on affldavlLs,
(d) sub[ecL Lo Lhe provlslons of secLlon 123 and 124 of Lhe lndlan Lvldence AcL, 1872, requlslLlonlng
any publlc record or documenL or copy of such record or documenL from any offlce,
(e) lssulng commlsslons for Lhe examlnaLlon of wlLnesses or documenLs,
(f) revlewlng lLs declslons,
(g) dlsmlsslng a represenLaLlon of defaulL or decldlng lL ex parLe,
(h) seLLlng aslde any order of dlsmlssal of any represenLaLlon for defaulL or any order passed by lL
ex parLe, and
(l) any oLher maLLer whlch may be prescrlbed by Lhe CenLral CovernmenL.

(3) An order made by Lhe AppellaLe 1rlbunal or Lhe Speclal ulrecLor (appeals) under Lhls AcL Shall be
execuLable by Lhe AppellaLe 1rlbunal or Lhe Speclal ulrecLor (Appeals) as a decree of clvll courL and,
for Lhls purpose, Lhe AppellaLe 1rlbunal and Lhe Speclal ulrecLor (Appeals) shall have all Lhe powers
of a clvll counL.

(4) noLwlLhsLandlng anyLhlng conLalned ln sub-secLlon (3), Lhe AppellaLe 1rlbunal or Lhe Speclal
ulrecLor (Appeals) may LransmlL any order made by lL Lo a clvll courL havlng local [urlsdlcLlon and
such clvll courL shall execuLe Lhe order as lf lL were a decree made by LhaL courL.

(3) All proceedlngs before Lhe AppellaLe 1rlbunal and Lhe Speclal ulrecLor (Appeals) shall be deemed
Lo be [udlclal proceedlngs wlLhln Lhe meanlng of secLlons 193 and 228 of Lhe lndlan enal Code and
Lhe AppellaLe 1rlbunal shall be deemed Lo be a clvll courL for Lhe purposes of secLlons 343 and 346
of Lhe Code of Crlmlnal rocedure, 1973 (2 of 1974).

29. D|str|but|on of bus|ness amongst 8enches: Where 8enches are consLlLuLed, Lhe Chalrperson
may, from Llme Lo Llme, by noLlflcaLlon, make provlslons as Lo Lhe dlsLrlbuLlon of Lhe buslness of Lhe
AppellaLe 1rlbunal amongsL Lhe 8enches and also provlde for Lhe maLLers whlch may be dealL wlLh
by each 8ench.

30. ower of Cha|rperson to transfer cases: Cn Lhe appllcaLlon of any of Lhe parLles and afLer noLlce
Lo Lhe parLles, and afLer hearlng such of Lhem as he may deslre Lo be heard, or on hls own moLlon
wlLhouL such noLlce, Lhe Chalrperson may Lransfer any case pendlng before one 8ench, for dlsposal,
Lo any oLher 8ench.

31. Dec|s|on to be by ma[or|ty: lf Lhe Members of a 8ench conslsLlng of Lwo Members dlffer ln
oplnlon on any polnL, Lhey shall sLaLe Lhe polnL or polnLs on whlch Lhey dlffer, and make a reference
Lo Lhe Chalrperson who shall elLher hear Lhe polnL or polnLs hlmself or refer Lhe case for hearlng on
such polnL or polnLs by one or more of Lhe oLher Members of Lhe AppellaLe 1rlbunal and such polnL
or polnLs shall be declded accordlng Lo Lhe oplnlon of Lhe ma[orlLy of Lhe Members of Lhe AppellaLe
1rlbunal who have heard Lhe case, lncludlng Lhose who flrsL heard lL.

32. k|ght of appe||ant to take ass|stance of |ega| pract|t|oner or chartered accountant and of
Government, to appo|nt present|ng off|cers: (1) A person preferrlng an appeal Lo Lhe AppellaLe
1rlbunal or Lhe Speclal ulrecLor (Appeals) under Lhls AcL may elLher appear ln person or Lake Lhe
asslsLance of a legal pracLlLloner or a charLered accounLanL of hls cholce Lo presenL hls case before
Lhe AppellaLe 1rlbunal or Lhe Speclal ulrecLor (Appeals), as Lhe case may be.

(2) 1he CenLral CovernmenL may auLhorlse one or more legal pracLlLloners of charLered accounLanLs
or any of lLs offlcers Lo acL as presenLlng offlcers and every person so auLhorlsed may presenL Lhe
case wlLh respecL Lo any appeal before Lhe AppellaLe 1rlbunal or Lhe Speclal ulrecLor (Appeals), as
Lhe case may be.

33. Members, etc., to be pub||c servants: 1he Chalrperson, Members and oLher offlcers and
employees of Lhe AppellaLe 1rlbunal, Lhe Speclal ulrecLor (Appeals) and Lhe Ad[udlcaLlng AuLhorlLy
shall be deemed Lo be publlc servanLs wlLhln Lhe meanlng of secLlon 21 of Lhe lndlan enal Code (43
of 1860).

34.C|v|| court not to have [ur|sd|ct|on: no clvll courL shall have [urlsdlcLlon Lo enLerLaln any sulL or
proceedlng ln respecL of any maLLer whlch an Ad[udlcaLlng AuLhorlLy or Lhe AppellaLe 1rlbunal or Lhe
Speclal ulrecLor (Appeals) ls empowered by or under Lhls AcL Lo deLermlne and no ln[uncLlon shall be
granLed by any courL or oLher auLhorlLy ln respecL of any acLlon Laken or Lo be Laken ln pursuance of
any power conferred by or under Lhls AcL.

3S.Appea| to n|gh Court : Any person aggrleved by any declslon or order of Lhe AppellaLe 1rlbunal
may flle an appeal Lo Lhe Plgh CourL wlLhln slxLy days from Lhe daLe of communlcaLlon of Lhe
declslon or order of Lhe AppellaLe 1rlbunal Lo hlm on any quesLlon of law arlslng ouL of such order:

rovlded LhaL Lhe Plgh CourL may, lf lL ls saLlsfled LhaL Lhe appellanL was prevenLed by sufflclenL
cause from flllng Lhe appeal wlLhln Lhe sald perlod, allow lL Lo be flled wlLhln a furLher perlod noL
exceedlng slxLy days.

LxplanaLlon.-ln Lhls secLlon "Plgh CourL" means -
(a) Lhe Plgh CourL wlLhln Lhe [urlsdlcLlon of whlch Lhe aggrleved parLy ordlnarlly resldes or carrles
on buslness or personally works for galn, and
(b) where Lhe CenLral CovernmenL ls Lhe aggrleved parLy, Lhe Plgh CourL wlLhln Lhe [urlsdlcLlon of
whlch Lhe respondenL, or ln a case where Lhere are more Lhan one respondenL, any of Lhe
respondenLs, ordlnarlly resldes or carrles on buslness or personally works for galn.

CnA1Lk VI
D|rectorate of Lnforcement

36. D|rectorate of Lnforcement: (1) 1he CenLral CovernmenL shall esLabllsh a ulrecLoraLe of
LnforcemenL wlLh a ulrecLor and such oLher offlcers or class of offlcers as lL Lhlnks flL, who shall be
called offlcers of LnforcemenL, for Lhe purposes of Lhls AcL.

(2) WlLhouL pre[udlce Lo Lhe provlslons of sub-secLlon (1), Lhe CenLral CovernmenL may auLhorlse
Lhe ulrecLor of LnforcemenL or an AddlLlonal ulrecLor of LnforcemenL or a Speclal ulrecLor of
LnforcemenL or a uepuLy ulrecLor of LnforcemenL Lo appolnL offlcers of LnforcemenL below Lhe rank
of an AsslsLanL ulrecLor of LnforcemenL.

(3) Sub[ecL Lo such condlLlons and llmlLaLlons as Lhe CenLral CovernmenL may lmpose, an offlcer of
LnforcemenL may exerclse Lhe powers and dlscharge Lhe duLles conferred or lmposed on hlm
under Lhls AcL.

37. ower of search, se|zure, etc. - (1) 1he ulrecLor of LnforcemenL and oLher offlcers of
LnforcemenL, noL below Lhe rank of an
AsslsLanL ulrecLor shall Lake up for lnvesLlgaLlon Lhe conLravenLlon referred Lo ln secLlon 13.

(2) WlLhouL pre[udlce Lo Lhe provlslons of sub-secLlon (1), Lhe CenLral CovernmenL may also, by
noLlflcaLlon, auLhorlse any offlcer or class of offlcers ln Lhe CenLral CovernmenL, SLaLe
CovernmenL or Lhe 8eserve 8ank, noL below Lhe rank of an under SecreLary Lo Lhe CovernmenL of
lndla Lo lnvesLlgaLe any conLravenLlon referred Lo ln secLlon 13.

(3)1he offlcers referred Lo ln sub-secLlon (1) shall exerclse Lhe llke powers whlch are conferred on
lncome-Lax auLhorlLles under Lhe lncome-Lax AcL, 1961 and shall exerclse such powers, sub[ecL Lo
such llmlLaLlons lald down under LhaL AcL.

38. Lmpower|ng other off|cers: (1) 1he CenLral CovernmenL may, by order and sub[ecL Lo such
condlLlons and llmlLaLlons as lL Lhlnks flL Lo lmpose, auLhorlse any offlcer of cusLoms or any cenLral
exclse offlcer or any pollce offlcer or any oLher offlcer of Lhe CenLral CovernmenL or a SLaLe
CovernmenL Lo exerclse such of Lhe powers and dlscharge such of Lhe duLles of Lhe ulrecLor of
LnforcemenL or any oLher offlcer of LnforcemenL under Lhls AcL as may be sLaLed ln Lhe order.

(2).1he offlcers referred Lo ln sub-secLlon (1) shall exerclse Lhe llke powers whlch are conferred on
Lhe lncome-Lax auLhorlLles under Lhe lncome-Lax AcL, 1961, sub[ecL Lo such condlLlons and
llmlLaLlons as Lhe CenLral CovernmenL may lmpose.

CnA1Lk VII
MISCLLLANLCUS

39. resumpt|on as to documents |n certa|n cases:- Where any documenL-
(l) ls produced or furnlshed by any person or has been selzed from Lhe cusLody or conLrol of any
person, ln elLher case, under Lhls AcL or under any oLher law, or
(ll) has been recelved from any place ouLslde lndla (duly auLhenLlcaLed by such auLhorlLy or person
and ln such manner as may be prescrlbed) ln Lhe course of lnvesLlgaLlon of any conLravenLlon under
Lhls AcL alleged Lo have been commlLLed by any person, and such documenL ls Lendered ln any
proceedlng under Lhls AcL ln evldence agalnsL hlm, or agalnsL hlm and any oLher person who ls
proceeded agalnsL [olnLly wlLh hlm, Lhe courL or Lhe Ad[udlcaLlng AuLhorlLy, as Lhe case may be,
shall-
(a) resume, unless Lhe conLrary ls proved, LhaL Lhe slgnaLure and every oLher parL of such
documenL whlch purporLs Lo be ln Lhe handwrlLlng of any parLlcular person or whlch Lhe courL may
reasonably assume Lo have been slgned by, or Lo be ln Lhe handwrlLlng of, any parLlcular person, ls ln
LhaL person's handwrlLlng, and ln Lhe case or a documenL execuLed or aLLesLed, LhaL lL was execuLed
or aLLesLed by Lhe person by whom lL purporLs Lo have been so execuLed or aLLesLed,
(b) admlL Lhe documenL ln evldence noLwlLhsLandlng LhaL lL ls noL duly sLamped, lf such documenL
ls oLherwlse admlsslble ln evldence,
(c) ln a case falllng under clause (l), also presume, unless Lhe conLrary ls proved, Lhe LruLh of Lhe
conLenLs of such documenL.

40. Suspens|on of operat|on of th|s Act: (1) lf Lhe CenLral CovernmenL ls saLlsfled LhaL
clrcumsLances have arlsen renderlng lL necessary LhaL any permlsslon granLed or resLrlcLlon lmposed
by Lhls AcL should cease Lo be granLed or lmposed, or lf lL conslders necessary or expedlenL so Lo do
ln publlc lnLeresL, Lhe CenLral CovernmenL may by noLlflcaLlon, suspend or relax Lo such exLenL
elLher lndeflnlLely or for such perlod as may be noLlfled, Lhe operaLlon of all or any of Lhe provlslons
of Lhls AcL.

(2) Where Lhe operaLlon of any provlslon of Lhls AcL has under sub-secLlon (1) been suspended or
relaxed lndeflnlLely, such suspenslon or relaxaLlon may, aL any Llme whlle Lhls AcL remalns ln force,
be removed by Lhe CenLral CovernmenL by noLlflcaLlon.

(3) Lvery noLlflcaLlon lssued under Lhls secLlon shall be lald, as soon as may be afLer lL ls lssued,
before each Pouse of arllamenL, whlle lL ls ln sesslon, for a LoLal perlod of LhlrLy days whlch may be
comprlsed ln one sesslon or ln Lwo or more successlve sesslons, and lf, before Lhe explry of Lhe
sesslon lmmedlaLely followlng Lhe sesslon or Lhe successlve sesslons aforesald, boLh Pouses agree ln
maklng any modlflcaLlon ln Lhe noLlflcaLlon or boLh Pouses agree LhaL Lhe noLlflcaLlon shoul noL be
lssued, Lhe noLlflcaLlon shall LhereafLer have effecL only ln such modlfled form or be of no effecL, as
Lhe case may be, so, however, LhaL any such modlflcaLlon or annulmenL shall be wlLhouL pre[udlce Lo
Lhe valldlLy of anyLhlng prevlously done under LhaL noLlflcaLlon.

41. ower of Centra| Government to g|ve d|rect|ons: (1)lor Lhe purposes of Lhls AcL, Lhe CenLral
CovernmenL may, from Llme Lo Llme, glve Lo Lhe 8eserve 8ank such general or speclal dlrecLlons as lL
Lhlnks flL, and Lhe 8eserve 8ank shall, ln Lhe dlscharge of lLs funcLlons under Lhls AcL, comply wlLh
any such dlrecLlons.

42. Contravent|on by compan|es: (1) Where a person commlLLlng a conLravenLlon of any of Lhe
provlslons of Lhls AcL or of any rule, dlrecLlon or order made Lhere under ls a company, every person
who, aL Lhe Llme Lhe conLravenLlon was commlLLed, was ln charge of, and was responslble Lo, Lhe
company for Lhe conducL of Lhe buslness of Lhe company as well as Lhe company, shall be deemed
Lo be gullLy of Lhe conLravenLlon and shall be llable Lo be proceeded agalnsL and punlshed
accordlngly,

rovlded LhaL noLhlng conLalned ln Lhls sub-secLlon shall render any such person llable Lo
punlshmenL lf he proves LhaL Lhe conLravenLlon Look place wlLhouL hls knowledge or LhaL he
exerclsed due dlllgence Lo prevenL such conLravenLlon.

(2) noLwlLhsLandlng anyLhlng conLalned ln sub-secLlon (1), where a conLravenLlon of any of Lhe
provlslons of Lhls AcL or of any rule, dlrecLlon or order made Lhereunder has been commlLLed by a
company and lL ls proved LhaL Lhe conLravenLlon has Laken place wlLh Lhe consenL or connlvance of,
or ls aLLrlbuLable Lo any neglecL on Lhe parL of, any dlrecLor, manager, secreLary or oLher offlcer of
Lhe company, such dlrecLor, manager, secreLary or oLher offlcer shall also be deemed Lo be gullLy of
Lhe conLravenLlon and shall be llable Lo be proceeded agalnsL and punlshed accordlngly.

LxplanaLlon. - lor Lhe purposes of Lhls secLlon-
(l) "company" means anybody corporaLe and lncludes a flrm or oLher assoclaLlon of lndlvlduals,
and
(ll) "dlrecLor", ln relaLlon Lo a flrm, means a parLner ln Lhe flrm.

43. Death or |nso|vency |n certa|n cases: Any rlghL, obllgaLlon, llablllLy, proceedlng or appeal arlslng
ln relaLlon Lo Lhe provlslons of secLlon 13 shall noL abaLe by reason of deaLh or lnsolvency of Lhe
person llable under LhaL secLlon and upon such deaLh or lnsolvency such rlghLs and obllgaLlons shall
devolve on Lhe legal represenLaLlve of such person or Lhe offlclal recelver or Lhe offlclal asslgnee, as
Lhe case may be,
rovlded LhaL a legal represenLaLlve of Lhe deceased shall be llable only Lo Lhe exLenL of Lhe
lnherlLance or esLaLe of Lhe deceased

44. 8ar of |ega| proceed|ngs: no sulL, prosecuLlon or oLher legal proceedlng shall lle agalnsL Lhe
CenLral CovernmenL or Lhe 8eserve 8ank or any offlcer of LhaL CovernmenL or of Lhe 8eserve 8ank
or any oLher person exerclslng any power or dlscharglng any funcLlons or performlng any duLles
under Lhls AcL, for anyLhlng ln good falLh done or lnLended Lo be done under Lhls AcL or any rule,
regulaLlon, noLlflcaLlon, dlrecLlon or order made Lhere under.

4S. kemova| of d|ff|cu|t|es: (1) lf any dlfflculLy arlses ln glvlng effecL Lo Lhe provlslons of Lhls AcL,
Lhe CenLral CovernmenL may, by order, do anyLhlng noL lnconslsLenL wlLh Lhe provlslons of Lhls AcL
for Lhe purpose of removlng Lhe dlfflculLy,
rovlded LhaL no such order shall be made under Lhls secLlon afLer Lhe explry of Lwo years from Lhe
commencemenL of Lhls AcL.

(2) Lvery order made under Lhls secLlon shall be lald, as soon as may be afLer lL ls made, before each
Pouse of arllamenL.

46. ower to make ru|es: (1) 1he CenLral CovernmenL may, by noLlflcaLlon, make rules Lo carry ouL
Lhe provlslons of Lhls AcL.

(2) WlLhouL pre[udlce Lo Lhe generallLy of Lhe foregolng power, such rules may provlde for, ---
(a) Lhe lmposlLlon of reasonable resLrlcLlons on currenL accounL LransacLlons under secLlon 3,
(b) Lhe manner ln whlch Lhe conLravenLlon may be compounded under sub-secLlon (1) of secLlon
13,
(c) Lhe manner of holdlng an lnqulry by Lhe Ad[udlcaLlng AuLhorlLy under sub-secLlon (1) of secLlon
16,
(d) Lhe form of appeal and fee for flllng such appeal under secLlons 17 and 19,

(e) Lhe salary and allowances payable Lo and Lhe oLher Lerms and condlLlons of servlce of Lhe
Chalrperson and oLher Members of Lhe AppellaLe 1rlbunal and Lhe Speclal ulrecLor (Appeals)
under secLlon 23,
(f) he salarles and allowances and oLher condlLlons of servlce of Lhe offlcers and employees of Lhe
AppellaLe 1rlbunal and Lhe offlce of Lhe Speclal ulrecLor (Appeals) under sub-secLlon (3) of
secLlon 27,
(g) he addlLlonal maLLers ln respecL of whlch Lhe AppellaLe 1rlbunal and Lhe Speclal ulrecLor
(Appeals) may exerclse Lhe powers of a clvll courL under clause (l) of sub-secLlon (2) of secLlon 28,
(h) he auLhorlLy or person and Lhe manner ln whlch any documenL may be auLhenLlcaLed under
clause (ll) of secLlon 39, and
(l) Any oLher maLLer whlch ls requlred Lo be, or may be, prescrlbed.

47. ower to make regu|at|ons: (1) 1he 8eserve 8ank may, by noLlflcaLlon, make regulaLlons Lo
carry ouL Lhe provlslons of Lhls AcL and Lhe rules made Lhere under.

(2) WlLhouL pre[udlce Lo Lhe generallLy of Lhe foregolng power, such regulaLlons may provlde for,-
(a) Lhe permlsslble classes of caplLal accounL LransacLlons, Lhe llmlLs of admlsslblllLy of forelgn
exchange for such LransacLlons, and Lhe prohlblLlon, resLrlcLlon or regulaLlon of cerLaln caplLal
accounL LransacLlons under secLlon 6,
(b) Lhe manner and Lhe from ln whlch Lhe declaraLlon ls Lo be furnlshed under clause (a) of sub-
secLlon (1) of secLlon 7,
(c) Lhe perlod wlLhln whlch and Lhe manner of repaLrlaLlon of forelgn exchange under secLlon 8,
(d) Lhe llmlL up Lo whlch any person may possess forelgn currency or forelgn colns under clause (a)
of secLlon 9,
(e) Lhe class of persons and Lhe llmlL up Lo whlch forelgn currency accounL may be held or
operaLed under clause (b) of secLlon 9,
(f) Lhe llmlL up Lo whlch forelgn exchange acqulred may be exempLed under clause (d) of secLlon 9,
(g) Lhe llmlL up Lo whlch forelgn exchange acqulred may be reLalned under clause (e) of secLlon9,
(h) any oLher maLLer whlch ls requlred Lo be, or may be speclfled.

48. ku|es and regu|at|ons to be |a|d before ar||ament: Lvery rule and regulaLlon made under Lhls
AcL shall be lald, as soon as may be afLer lL ls made, before each Pouse of arllamenL, whlle lL ls ln
sesslon for a LoLal perlod of LhlrLy days whlch may be comprlsed ln one sesslon or ln Lwo or more
successlve sesslons, and lf, before Lhe explry of Lhe sesslon lmmedlaLely followlng Lhe sesslon or Lhe
successlve sesslons aforesald, boLh Pouses agree LhaL Lhe rule or regulaLlon should noL be made, Lhe
rule or regulaLlon shall LhereafLer have effecL only ln such modlfled form or be of no effecL, as Lhe
case may be, so, however, LhaL any such modlflcaLlon or annulmenL shall be wlLhouL pre[udlce Lo Lhe
valldlLy of anyLhlng prevlously done under LhaL rule or regulaLlon.

49. kepea| and sav|ng: (1) 1he lorelgn Lxchange 8egulaLlon AcL, 1973 ls hereby repealed and Lhe
AppellaLe 8oard consLlLuLed under sub-secLlon (1) of secLlon 32 of Lhe sald AcL (herelnafLer referred
Lo as Lhe repealed AcL) shall sLand dlssolved.

(2) Cn Lhe dlssoluLlon of Lhe sald AppellaLe 8oard, Lhe person appolnLed as Chalrman of Lhe
AppellaLe 8oard and every oLher person appolnLed as Member and holdlng offlce as such
lmmedlaLely before such daLe shall vacaLe Lhelr respecLlve offlces and no such Chalrman or oLher
person shall be enLlLled Lo clalm any compensaLlon for Lhe premaLure LermlnaLlon of Lhe Lerm of hls
offlce or of any conLracL of servlce.

(3) noLwlLhsLandlng anyLhlng conLalned ln any oLher law for Lhe Llme belng ln force, nor courL shall
Lake cognlzance of an offence under Lhe repealed AcL and no ad[udlcaLlng offlcer shall Lake noLlce of
any conLravenLlon under secLlon 31 of Lhe repealed AcL afLer Lhe explry of a perlod of Lwo years
from Lhe daLe of Lhe commencemenL of Lhls AcL.

(4) Sub[ecL Lo Lhe provlslons of sub-secLlon (3) all offences commlLLed under Lhe repealed AcL shall
conLlnue Lo be governed by Lhe provlslons of Lhe repealed AcL as lf LhaL AcL had noL been repealed.

(3) noLwlLhsLandlng such repeal,-
(a) anyLhlng done or any acLlon Laken or purporLed Lo have been done or Laken lncludlng any rule,
noLlflcaLlon, lnspecLlon, order or noLlce made or lssued or any appolnLmenL, conflrmaLlon or
declaraLlon made or any llcense, permlsslon, auLhorlzaLlon or exempLlon granLed or any documenL
or lnsLrumenL execuLed or any dlrecLlon glven under Lhe AcL hereby repealed shall, ln so far as lL ls
noL lnconslsLenL wlLh Lhe provlslons of Lhls AcL, be deemed Lo have been done or Laken under Lhe
correspondlng provlslons of Lhls AcL,

(b) any appeal preferred Lo Lhe AppellaLe 8oard under sub-secLlon (2) of secLlon32 of Lhe
repealed AcL buL noL dlsposed off before Lhe commencemenL of Lhls AcL shall sLand Lransferred Lo
and shall dlsposed of by Lhe AppellaLe 1rlbunal consLlLuLed under Lhls AcL,

(c) very appeal from any declslon or order of Lhe appellaLe 8oard under sub-secLlon (3) or sub-
secLlon (4) of secLlon 32 of Lhe repealed AcL shall, lL noL flled before Lhe commencemenL of Lhls AcL,
be fllled before Lhe Plgh CourL wlLhln a perlod of slxLy days of such commencemenL:

rovlded LhaL Lhe Plgh CourL may enLerLaln such appeal afLer Lhe explry of Lhe sald perlod of
slxLy days lf lL ls saLlsfled LhaL Lhe appellanL was prevenLed by sufflclenL cause from flllng Lhe appeal
wlLh Lhe sald perlod.

(6) save as oLherwlse provlded ln sub-secLlon (3), Lhe menLlon of parLlcular maLLers ln sub-secLlon
(2), (4) and (3) shall noL be held Lo pre[udlce or affecL Lhe general appllcaLlon of secLlon 6 of Lhe
Ceneral Clauses AcL, 1897 wlLh regard Lo Lhe effecL of repeal.