Module: | Introduction, Scope and Residential Status
Q1: A businessman fails to comply with a procedural requirement, under the Foreign Exchange Management Act (FEMA). Which of the following describes the nature of the potential liability he faces?
✅ Correct Answer: B
FEMA is a civil law, distinct from its predecessor FERA which was a criminal law.
Violations of FEMA are treated as civil contraventions, typically resulting in monetary penalties (fines) which can be up to three times the sum involved in the contravention.
Imprisonment is not the default punishment; it arises only if the penalty is not paid.
Citizenship cancellation is not a penalty under this Act.
Violations of FEMA are treated as civil contraventions, typically resulting in monetary penalties (fines) which can be up to three times the sum involved in the contravention.
Imprisonment is not the default punishment; it arises only if the penalty is not paid.
Citizenship cancellation is not a penalty under this Act.