Module: General Practice
Q87: Which authority is primarily responsible for investigating contraventions under FEMA (Section 37) and conducting adjudication proceedings?
✅ Correct Answer: B
The Directorate of Enforcement (ED). Concept Definition: Separation of Powers in FEMA.
Structural Breakdown: RBI: The Regulator (Administers the Act/Compounding). ED: The Enforcer (Investigates contraventions, conducts raids, issues SCNs, and adjudicates penalties). Causal Reasoning: This separation ensures that the entity managing the currency (RBI) is not the same as the entity policing the users (ED).
Structural Breakdown: RBI: The Regulator (Administers the Act/Compounding). ED: The Enforcer (Investigates contraventions, conducts raids, issues SCNs, and adjudicates penalties). Causal Reasoning: This separation ensures that the entity managing the currency (RBI) is not the same as the entity policing the users (ED).