FEMA ADJUDICATING AUTHORITY

Can anyone tell me where Enforcement Directorate (ED) is the
Adjudicating Authority in FEMA, 1999 or ED and Adj Authority are different
Replies (1)

Under the Foreign Exchange Management Act (FEMA), 1999, the Enforcement Directorate (ED) and the Adjudicating Authority are distinct in their roles, though the Adjudicating Authority is comprised of officers from the Enforcement Directorate.

Key Distinction

  • Enforcement Directorate (ED): This is the investigative agency responsible for enforcing the provisions of FEMA. Its officers investigate suspected contraventions, gather evidence, and, if a violation is found, file a formal complaint.

  • Adjudicating Authority: This is a quasi-judicial body appointed by the Central Government under Section 16 of FEMA to hold an inquiry into the alleged contraventions. It functions as an impartial body to hear the case, examine evidence, and pass a reasoned order regarding the imposition of penalties.

How they work together

  1. Investigation: The ED conducts the investigation and issues a Show Cause Notice (SCN) to the alleged offender.

  2. Complaint: If the ED officer is not satisfied with the response to the SCN, they file a formal complaint with the Adjudicating Authority.

  3. Adjudication: The Adjudicating Authority (an officer designated by the Central Government) conducts the inquiry, hears the person, and passes an order under Section 13 of FEMA.

Appointment of Adjudicating Authorities

While the Adjudicating Authority is often a high-ranking officer within the Enforcement Directorate, they act in a specific judicial capacity when adjudicating a case. Depending on the financial amount involved in the alleged contravention, the Central Government designates various officers within the ED to act as the Adjudicating Authority:

Authority Level Monetary Jurisdiction (Amount Involved)
Director / Special Director Exceeding ₹25 crore
Additional Director Exceeding ₹10 crore up to ₹25 crore
Joint Director Exceeding ₹5 crore up to ₹10 crore
Deputy Director Exceeding ₹2 crore up to ₹5 crore
Assistant Director Up to ₹2 crore

Summary: The Enforcement Directorate is the investigative agency, while the Adjudicating Authority is a quasi-judicial role performed by specific officers of the Enforcement Directorate (appointed by the Central Government) to adjudicate and impose penalties under FEMA.

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