Module: | Penalties, Adjudication and Sections
Q15: Consider the following statements, regarding penalties and recovery under FEMA:
1. If the amount involved in a contravention is quantifiable, the penalty can be up to three times, the sum involved.
2. If a penalty is not paid within the prescribed time, the enforcement authority has the power to seize property, or assets of equivalent value.
3. The standard penalty for all FEMA violations, is a fixed fine of ₹5,000, regardless of the amount involved.
4. Non-payment of penalties, automatically results in the cancellation of the defaulter's Indian citizenship.
Which of the statements above, are correct?
2. If a penalty is not paid within the prescribed time, the enforcement authority has the power to seize property, or assets of equivalent value.
3. The standard penalty for all FEMA violations, is a fixed fine of ₹5,000, regardless of the amount involved.
4. Non-payment of penalties, automatically results in the cancellation of the defaulter's Indian citizenship.
Which of the statements above, are correct?
✅ Correct Answer: A
Section 13 of FEMA empowers the Adjudicating Authority to impose a penalty of up to three times the sum involved in the contravention where the amount is quantifiable.
If the penalty is not paid, the Act provides mechanisms for recovery, which can include the attachment and seizure of the defaulter's property to recover the dues.
Citizenship cancellation is not a remedy under FEMA.
If the penalty is not paid, the Act provides mechanisms for recovery, which can include the attachment and seizure of the defaulter's property to recover the dues.
Citizenship cancellation is not a remedy under FEMA.