Under Section 13 of the Foreign Exchange Management Act, 1999, a person who contravenes the provisions of the Act is liable to a penalty:

Section 13 of the Foreign Exchange Management Act, 1999, provides that a person who contravenes the Act or any rule, regulation, direction or order made thereunder is liable to a penalty. If the amount involved in the contravention is quantifiable, the penalty may extend to three times that sum; where the amount is not quantifiable, the penalty may extend to two lakh rupees. For a continuing contravention, a further penalty of five thousand rupees for every day during which it continues may be imposed. The penalty is imposed by the adjudicating authority appointed under Section 16, and no imprisonment is prescribed at the first stage. Twice the sum, a flat ten per cent or a fixed fifty thousand rupees are not the statutory scales.