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CS Executive · Economic, Commercial and Intellectual Property Laws · Overseas Direct Investment

During an inspection of an authorised person organised as a company, an RBI officer specially authorised in writing asks for books and accounts. Under Section 12 of FEMA, who must produce them?

Section 12(2) places the duty on every authorised person and, if it is a company or firm, on every director, partner or other officer to produce books, accounts and documents in their custody or power and furnish required information to the inspecting officer.

  1. AOnly the Reserve Bank's own officers
  2. BEvery authorised person and, where it is a company, every director or other officer, must produce books, accounts and documents in their custody or powerCorrect
  3. COnly the company's statutory auditor
  4. DOnly the exporter whose transactions are examined

Explanation

Section 12(2) makes it the duty of every authorised person, and for a company or firm every director, partner or other officer, to produce books, accounts and documents and furnish information as the inspecting officer requires. The auditor-only and exporter-only options are not in the text.

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