Kartikey Tiwari 04 March 2024

Section relaed to fema

Hey guys kindly tell me regarding this case

A is a german based company which has its subsidiary B In India. Now A with C in a joint venture opens company D. D and B have same kind of business. Now A facilitates B in such a manner that D have to bear losses. Due to which D goes to Economic offence wing. Tell me which section and guidelines of FEMA this case attracts

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T. Kalaiselvan, Advocate (Advocate) 04 March 2024

Economic crime covers a wide range of offenses, from financial crimes committed by banks, tax evasion, illicit capital heavens, money laundering, crimes committed by public officials (like bribery, embezzlement, traffic of influences, etc.) among many others.

FEMA is no more a Criminal offence, and only monetary penalty, i.e. civil proceedings are applicable. Civil imprisonment is provided, only in case of default to pay fine.

Penalties for contraventions under FEMA are per se monetary in nature. If any person contravenes any provisions, rules, regulations, etc. the penalty imposed can be up to 3 times of the sum involved in contravention; and if the sum of contravention is not ascertainable, penalty can be up to Rs. 200,000.