📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    Under Section 13 of FEMA, 1999, what is the penalty for

    contravention of any provision of the Act where the amount involved in the contravention is quantifiable?
    A A flat penalty of ₹1 lakh irrespective of the amount involved Correct Answer Incorrect Answer
    B Up to three times the sum involved in the contravention Correct Answer Incorrect Answer
    C Up to five times the sum involved in the contravention Correct Answer Incorrect Answer
    D Up to twice the sum involved in the contravention, subject to a maximum of ₹2 lakh Correct Answer Incorrect Answer

    Solution

    Explanation:   Section 13 of FEMA, 1999  provides that if any person contravenes any provision of the Act, or any rule, regulation, notification, direction, or order issued thereunder, he shall be liable to a penalty of  up to three times the sum involved  in the contravention where the amount is quantifiable. Where the amount is  not quantifiable , the penalty can be up to  ₹2 lakh . Additionally, if the contravention is a  continuing one , a further penalty of up to  ₹5,000 per day  is imposed for each day the contravention continues after the first day.

    Practice Next
    More Other Laws and Acts Questions

    Relevant for Exams:

    ask-question