Remittance for participation in lottery, etc. schemes
AP (DIR Series) (2001-2002) Circular No. 49, dated 4-6-2002
Attention
of authorised dealers is invited to A.P. (DIR Series) Circular No. 22 dated
December 7, 2000 and A.P. (DIR Series) Circular No. 2 dated July 27, 2001 in
connection with prohibition on remittance in any form towards participation in
lottery schemes or lottery like schemes, functioning under different names like
money circulation scheme, or remittances for the purpose of securing prize
money/awards etc., under Foreign Exchange Management Act, 1999.
2. It is
clarified that the prohibition on such payments include payment not only by a
resident by use of cash/draft/credit card/debit card etc. but also payments
made by non-residents on behalf of residents. As such any person resident in
India effecting/remitting such payment directly/indirectly would make
himself/herself liable to be proceeded against the contravention of the Foreign
Exchange Management Act, 1999.
3. Therefore,
with a view to caution the members of public, authorised dealers are once again
advised to give wide publicity to the instructions contained in the A.P. (DIR
Series) Circulars referred to above.
4. The
directions contained in this circular have been issued under section 10(4) and
section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999).