Foreign Exchange (Compounding Proceedings) Rules, 2000
G.S.R.
383(E), dated 3-5-2000 - In exercise of the powers conferred by section 46 read
with sub-section (1) of section 15 of the Foreign Exchange Management Act, 1999
(42 of 1999) the Central Government hereby makes the following rules relating
to compounding contraventions under Chapter IV of the said Act, namely :—
(1) These rules may be called the Foreign
Exchange (Compounding Proceedings) 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) “authorised officer” means an officer
authorised under sub-rule (1) of rule 3;
(c) “applicant” means a person who makes
an application under section 15(1) of the Act to the compounding authority;
(d) “Compounding Order” means an order
issued under sub-section (1) of section 15 of the Act;
(e) “Form” means a form appended to these
rules;
(f) “section” means a section of the
Act;
(g) all other words and expressions used
in these rules and not defined but defined in the Act, shall have the meaning
respectively assigned to them in the Act.
“Compounding
Authority” means the persons authorised by the Central Government under
sub-section (1) of section 15 of the Act, namely :
(a) An
officer of the Enforcement Directorate not below the rank of Deputy Director or
Deputy Legal Adviser (DLA).
(b) An
officer of the Reserve Bank of India not below the rank of the Assistant
General Manager.
Power of Reserve Bank to compound contravention.
(1) If any person contravenes any of the provisions of section 7, or section 8 or section 9 or Third Schedule to the Foreign Exchange (Current Account Transaction) Rules, 2000 notified by GSR No. 381(E), dated 3-5-2000, such contraventions may be compounded :—
(a) in case where the sum involved in
such contravention is five lakh rupees or below, by the Assistant General
Manager of the Reserve bank of India;
(b) in case where the sum involved in
such contravention is more than rupees five lakhs but less than rupees twenty
lakhs, by the Deputy General Manager of Reserve Bank of India;
(c) in case where the sum involved in
the contravention is rupees twenty lakhs or more but less than rupees fifty
lakhs by the General Manager of Reserve Bank of India;
(d) in case the sum involved in such
contravention is rupees fifty lakhs or more, by the Chief General Manager of
the Reserve Bank of India :
Provided
further
that no contravention shall be compounded unless the amount involved in such
contravention is quantifiable.
(2) Nothing contained in
sub-section (1) shall apply to a contravention committed by any person within
a period of three years from the date on which a similar contravention
committed by him was compounded under these rules.
Explanation :—For the purposes of this
rule, any second or subsequent contravention committed after the expiry of a
period of three years from the date on which the contravention was previously
compounded shall be deemed to be a first contravention.
(3) Every officer specified
under sub-rule (1) of rule 4 of the Reserve Bank of India shall exercise the
powers to compound any contravention subject to the direction, control and
supervision of the Governor of the Reserve Bank of India.
(4) Every application for
compounding any contravention under this rule shall be made in Form to the
Reserve Bank of India, Exchange Control Department, Central Office, Mumbai
along with a fee of Rs. 5,000 by Demand Draft in favour of compounding authority.
The power of Enforcement Directorate to compound contraventions.
(1) If any person contravenes
any of the provisions of sections other than section 7 or section 8 or section
9 or Third Schedule to the Foreign Exchange (Current Account Transaction)
Rules, 2000 notified vide GSR
No. 381(E), dated 3-5-2000, such contravention may be compounded :
(a) in case where the sum involved in
such contravention is five lakhs rupees or below, by the Deputy Director of the
Directorate of Enforcement;
(b) in case where the sum involved in
such contravention is more than rupees five lakhs but less than rupees ten
lakhs, by the Additional Director of the Directorate of Enforcement;
(c) in case where the sum involved in
the contravention is rupees ten lakhs or more but less than fifty lakhs rupees
by the Special Director of the Directorate of Enforcement;
(d) in case where the sum involved in the
contravention is rupees fifty lakhs or more but less than one crore rupees by
Special Director with Deputy Legal Adviser of the Directorate of Enforcement;
(e) in case the sum involved in such
contravention is one crore rupees or more, by the Director of Enforcement with
Special Director of the Enforcement Directorate :
Provided
further
that no contravention shall be compounded unless the amount involved in such
contravention is quantifiable.
(2) Nothing contained in
sub-section (1) shall apply to a contravention committed by any person within
a period of three years from the date on which a similar contravention committed
by him was compounded under these rules.
Explanation : For the purposes of this
rule, any second or subsequent contravention committed after the expiry of a
period of three years from the date on which the contravention was previously
compounded shall be deemed to be a first contravention.
(3) Every officer of the
Directorate of Enforcement specified under sub-rule (1) of this rule shall
exercise the powers to compound any contravention subject to the direction,
control and supervision of the Director of Enforcement.
(4) Every application for
compounding any contravention under this rule shall be made in Form to the
Director, Directorate of Enforcement, New Delhi, along with a fee of Rs. 5,000
by DD in favour of the Compounding Authority.
Where any contravention
is compounded before the adjudication of any contravention under section 16, no
inquiry shall be held for adjudication of such contravention in relation to
such contravention against the person in relation to whom the contravention is
so compounded.
Where the
compounding of any contravention is made after making of a complaint under
sub-section (3) of section 16, such compounding shall be brought by the
authority specified in rule 4 or rule 5 in writing, to the notice of the
Adjudicating Authority and on such notice of the compounding of the
contravention being given, the person in relation to whom the contravention is
so compounded shall be discharged.
(1) The Compounding Authority
may call for any information, record or any other documents relevant to the
compounding proceedings.
(2) The Compounding Authority
shall pass an order of compounding after affording an opportunity of being
heard to all the concerned as expeditiously as possible and not later than 180
days from the date of application.
1[Payment of amount compounded.
The sum for which the contravention is compounded as specified in the order of compounding under sub-rule (2) of rule 8, shall be paid by demand draft in favour of the Compounding Authority within fifteen days from the date of the order of compounding of such contravention.]
In case a person
fails to pay the sum compounded in accordance with the rule 9 within the time
specified in that rule, he shall be deemed to have never made an application
for compounding of any contravention under these rules and the provisions of
the Act for contravention shall apply to him.
No contravention
shall be compounded if an appeal has been filed under section 17 or section 19
of the Act.
Contents of the order of the Compounding Authority.
(1) Every order shall specify
the provisions of the Act or of the rules, directions, requisitions or orders
made thereunder in respect of which contravention has taken place along with
details of the alleged contravention.
(2) Every such order shall be dated and signed
by the Compounding Authority under his seal.
One copy of the
order made under rule 8(2) shall be supplied to the applicant and the
Adjudicating Authority as the case may be.
[K1]Substituted by FEM (Compounding Proceedings) (Amdt.) Rules, 2002, w.e.f. 22-10-2002.