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CA Intermediate · Corporate and Other Laws · The Foreign Exchange Management Act, 1999

Kiran Pharma Ltd., an Indian company, received a notice that it contravened FEMA by not filing a prescribed return. The adjudicating authority passed an order imposing a penalty. Where should the company first appeal against this order?

The company should first appeal to the Special Director (Appeals) against the adjudicating authority's order. A further appeal lies to the Appellate Tribunal, and later to the High Court on a question of law. It cannot go directly to the Supreme Court or High Court.

  1. ADirectly to the Supreme Court
  2. BDirectly to the High Court
  3. CTo the Special Director (Appeals), and thereafter to the Appellate TribunalCorrect
  4. DTo the Central Government through the Finance Ministry only

Explanation

Under FEMA, an order of the adjudicating authority is first appealable to the Special Director (Appeals) in the Enforcement Directorate. A further appeal lies to the Appellate Tribunal, and then to the High Court on a question of law. Skipping the hierarchy and approaching the Supreme Court or High Court directly is not the prescribed route.

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