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CS Executive · Economic, Commercial and Intellectual Property Laws · Law relating to Foreign Exchange Management

Under Section 13(2) of FEMA, an adjudicating authority, besides imposing a penalty for a contravention, may do which of the following?

The adjudicating authority may direct that any currency, security or other property involved in the contravention be confiscated to the Central Government. It may also direct the foreign exchange holdings be brought back or retained abroad. Imprisonment is not within this power.

  1. ADirect confiscation to the Central Government of any currency, security or property involved in the contraventionCorrect
  2. BOrder the imprisonment of the contravener for up to five years
  3. CImpose a penalty on an authorised person of up to Rs 10,000 per day
  4. DDirect that all the contravener's foreign exchange be permanently retained outside India

Explanation

Section 13(2) allows the adjudicating authority to direct confiscation of currency, security or property in respect of which the contravention took place. It may also direct that foreign exchange holdings be brought back or retained outside India as it directs, not always retained abroad. Imprisonment relates to Section 13(1C), and the authorised person penalty to Section 11(3).

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