Module: | Penalties, Adjudication and Sections
Q14: An individual realizes they have inadvertently committed a technical contravention, of FEMA procedures. They wish to voluntarily admit the error, and pay a monetary settlement to close the matter, without facing lengthy litigation. Which facility under FEMA allows this?
✅ Correct Answer: B
FEMA provides for the "Compounding of Contraventions." This is a mechanism where a person can voluntarily admit to a contravention (usually of a technical or non-intentional nature) and apply to the compounding authority (RBI or ED depending on the case). By paying the determined sum, the contravention is settled, and no further adjudication proceedings are initiated for that specific offence.