Module: General Practice
Q2: As per Section 1 of FEMA, 1999, the Act extends to the whole of India. Which of the following statements correctly defines its extra-territorial jurisdiction?
✅ Correct Answer: B
Section 1(2) of FEMA, 1999 defines the extent of the Act.
While it applies to the whole of India, its extra-territorial jurisdiction is specific: 1. It applies to all branches, offices, and agencies outside India owned or controlled by a Person Resident in India (PRI). 2. It applies to any contravention committed outside India by any person to whom this Act applies.
Key Distinction: The jurisdiction is tied to "Residency" and "Control," not just Citizenship.
A branch of an Indian firm in London is covered because it is owned/controlled by a PRI.
Conversely, a foreign citizen is not covered unless they fall under the definition of a "Person Resident in India."
While it applies to the whole of India, its extra-territorial jurisdiction is specific: 1. It applies to all branches, offices, and agencies outside India owned or controlled by a Person Resident in India (PRI). 2. It applies to any contravention committed outside India by any person to whom this Act applies.
Key Distinction: The jurisdiction is tied to "Residency" and "Control," not just Citizenship.
A branch of an Indian firm in London is covered because it is owned/controlled by a PRI.
Conversely, a foreign citizen is not covered unless they fall under the definition of a "Person Resident in India."