CS Executive · Economic, Commercial and Intellectual Property Laws · Law relating to Foreign Exchange Management
Rohan Mehta, a resident of India, contravenes a FEMA rule. The sum involved is quantifiable at ₹10 lakh. On adjudication under section 13(1), what is the maximum basic penalty (excluding any daily penalty)?
The maximum basic penalty is ₹30 lakh. Under section 13(1), where the sum involved in the contravention is quantifiable, the penalty can extend to three times that sum, so three times ₹10 lakh applies. The ₹2 lakh limit is for non-quantifiable cases.
- A₹2 lakh
- B₹10 lakh
- C₹30 lakhCorrect
- D₹50 lakh
Explanation
Where the amount is quantifiable, the penalty can go up to thrice the sum involved. Thrice ₹10 lakh is ₹30 lakh. The ₹2 lakh ceiling applies only where the amount is not quantifiable.
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