Foreign Exchange management (Encashment of Draft, cheque, instrument
and payment of interest) Rules, 2000
GSR
379(E), dated 3-5-2000 - In exercise of
the powers conferred by section 46 of the Foreign Exchange Management Act, 1999
(42 of 1999), the Central Government hereby makes the following rules, namely
:—
(1) These rules may be called
the Foreign Exchange Management (Encashment of Draft, Cheque, Instrument and
Payment of Interest) Rules, 2000.
(2) They shall come into force on the 1st day
of June, 2000.
In these rules,
unless the context otherwise requires,—
(a) “Act” means the Foreign Exchange Management Act, 1999 (42
of 1999);
(b) “Adjudicating Authority” means an
officer appointed by the Central Government under sub-section (1) of section 16
of the Act;
(c) “Authorised Person” means a person as defined in clause (c)
of section 2 of the Act;
(d) “Cheque” includes a traveller’s cheque;
(e) “Investigation” means an investigation as envisaged under
section 37 of the Act;
(f) “Special Director (Appeals)” means Special
Director (Appeals) appointed by the Central Government under sub-section (1) of
section 17 of the Act;
(g) “Appellate Tribunal” means the
Appellate Tribunal for Foreign Exchange established under section 18 of the
Act.
Delivery of Draft, Cheque and other Instrument for Encashment.
Where
investigation referred to in section 37 is being taken up into any alleged
contravention of any provision of the Act or of any rule, regulation, direction
or order, or violation of any condition subject to which Reserve Bank of India
gives authorisation, made thereunder, and any draft, cheque or other
instrument relevant for such investigation such officer shall cause such draft,
cheque or other instrument to be delivered for encashment to Reserve Bank of
India or an authorised person as the officer may specify.
Encashment of draft, cheque or other instrument.
The Reserve Bank
of India or an authorised person shall take steps without delay for encashing
the draft, cheque or other instrument and, on such encashment, shall credit the
proceeds realised (less any commission and expenses incurred for such
encashment) to a separate account in the name of the Directorate of
Enforcement.
Where
Investigation referred to in section 37 of the Act is being taken up into any
alleged contravention of any provision of the Act or any rule, regulation or
direction or order, or violation of any condition subject to which Reserve
Bank of India gives authorisation, the Indian currency relevant to such investigation
is in the custody of an officer of Enforcement Directorate, then, such officer
shall deposit the Indian currency in a nationalised bank to a separate account
in the name of Directorate of Enforcement.
The Central Government
shall indemnify the Reserve Bank of India or an authorised person against any
liability which the Reserve Bank of India or an authorised person may incur by
reason of, or in connection with, the encashment of the draft, cheque or other
instrument delivered to it.
Direction for Payment of the proceeds.
(i) Where it has
been found during the course of investigation or adjudication that, any draft,
cheque or other instrument is not relevant for such investigation, the
Investigating Officer or the Adjudicating Authority, as the case may be, pass
such order that the person to whom the proceeds of such draft, cheque or other
instrument may be paid.
(ii) Where it has
been found during the course of appeal before the Special Director (Appeals) or
the Appellate Tribunal or the High Court, as the case may be, that, any draft,
cheque or other instrument is not considered relevant for such appeal, then,
the Special Director (Appeals) or the Appellate Tribunal or the High Court, as
the case may be, pass such order specifying the person to whom the proceeds of
the draft, cheque or other instruments may be paid.
Payment of interest on the seized Indian currency.
(i) Where it is
found after completion of the investigation that the Indian currency seized
under section 37 of the Act is not involved in the contravention and is to be
returned, the same shall be returned to such persons together with interest at
the rate of 6% per annum from the date of seizure till the date of payment.
(ii) Where it has
been found during the course of adjudication that the seized Indian currency is
not relevant for such adjudication, the Adjudicating Authority may pass such
order returning such Indian currency together with interest at the rate of 6%
per annum to such person.