General Penalty under FEMA:
Under section 13 of FEMA,
If any person contravenes any provision of this Act/rule regulation/notification/direction/order issued/any condition subject to which an authorisation is issued by the Reserve Bank, he shall,
- be liable to a penalty up to thrice the sum involved in such contravention where such amount is quantifiable
- or up to two lakh rupees where the amount is not quantifiable ,
- and where such contravention is a continuing one , further penalty which may extend to five thousand rupees for every day after the first day during which the contravention continues.
Prosecution (Criminal proceedings) under FEMA:
Under section 13 (1C) of FEMA,
If any person is found to have acquired any foreign exchange, foreign security or immovable property, situated outside India, of the aggregate value exceeding Rs. 1 Crore (F. No. A 12011/02/2014 Ad.ED), he shall:
- be, in addition to the penalty be punishable with imprisonment for a term which may extend to five years and with fine.
- Therefore, there are no prosecution provisions for NRI under FEMA other than the above stated provision.
Arrest for investigation under FEMA:
Under section 14 (3) & 14 (4) of FEMA,
- An arrest warrant may be issued if any defaulter fails to pay the penalty as may be levied within the specified date.
- It may also be issued if the Adjudicating Authority is satisfied, that the defaulter is likely to abscond or leave the local limits of the jurisdiction of the Adjudicating Authority.
- Where appearance is not made pursuant to a notice issued and served , the Adjudicating Authority may issue an arrest warrant for the defaulter.
