Module: General Practice
Q86: Under Section 13 of FEMA 1999, what is the maximum quantitative penalty that can be imposed if the amount involved in the contravention is quantifiable?
✅ Correct Answer: B
Up to three times the sum.
Concept Definition: Section 13 is the "Teeth" of FEMA.
Structural Breakdown: Quantifiable Amount: Penalty up to 300% (3x) of the amount involved.
Unquantifiable Amount: Penalty up to ₹2 Lakhs.
Continuing Default: Additional penalty of up to ₹5,000 per day.
Historical Context: This quantum has remained stable.
Note that this is the maximum; the Adjudicating Authority has discretion to levy less, but cannot exceed 3x.
Concept Definition: Section 13 is the "Teeth" of FEMA.
Structural Breakdown: Quantifiable Amount: Penalty up to 300% (3x) of the amount involved.
Unquantifiable Amount: Penalty up to ₹2 Lakhs.
Continuing Default: Additional penalty of up to ₹5,000 per day.
Historical Context: This quantum has remained stable.
Note that this is the maximum; the Adjudicating Authority has discretion to levy less, but cannot exceed 3x.