Module: General Practice
Q75: Under Section 13 of the FEMA, 1999, if an Authorized Person contravenes any provision of the Act (e.g., selling forex for a prohibited purpose), they are liable to a penalty of up to:
✅ Correct Answer: B
1. Section 13 (Penalties): If any person contravenes any provision of FEMA, 1999, or any rule/regulation/direction issued under it, they are liable to a penalty.
2. Quantifiable Amount: If the amount involved in the contravention is quantifiable, the penalty can be up to three times the sum involved.
3. Unquantifiable Amount: If the amount is not quantifiable, the penalty can be up to ₹2 Lakhs.
4. Continuing Contravention: Further penalty of up to ₹5,000 per day for every day the contravention continues.
2. Quantifiable Amount: If the amount involved in the contravention is quantifiable, the penalty can be up to three times the sum involved.
3. Unquantifiable Amount: If the amount is not quantifiable, the penalty can be up to ₹2 Lakhs.
4. Continuing Contravention: Further penalty of up to ₹5,000 per day for every day the contravention continues.