(1) This Act may be called the Foreign Exchange Regulation Act, 1947.

1[(2) It extends to the whole of India 2[* * *], and it applies also to all citizens of India outside India 3[and to branches and agencies outside India of companies or bodies corporate registered or incorporated in India.]

(3) It shall come into force on such date4 as the Central Government may, by notification in the Official Gazette, appoint in this behalf.

5[* * *]

In this Act, unless there is anything repugnant in the subject or context,

6[(a) Appellate Board means the Foreign Exchange Regulation Appellate Board constituted by the Central Government under sub-section (1) of Section 23-E;

(a-i) authorised dealer means a person for the time being authorised under Section 3 to deal in foreign exchange;

(a-ii) bearer certificate means a certificate of title to securities by the delivery of which (with or without endorsement) the title to the securities is transferable;

(a-iii) certificate of title to a security means any document used in the ordinary course of business as proof of the possession or control of the security, or authorising or purporting to authorise, either by an endorsement or by delivery, the possessor of the document to transfer or receive the security thereby represented;

(a-iv) coupon means a coupon representing dividends or interest on a security;]

(b) currency includes all coins, currency notes, bank notes postal notes, 7[postal orders] money orders, cheques, drafts, traveller's cheques, letters of credit, bills of exchange and promissory notes;

8[(bb) Director of Enforcement means the Director of Enforcement of Foreign Exchange Regulation appointed by the Central Government for the purpose of enforcing the provisions of this Act;]

(c) foreign currency means any currency other than Indian currency;

(d) foreign exchange means foreign currency and includes all deposits, credits and balance payable in any foreign currency, and any drafts, traveller's cheques, letters of credit and bills of exchange, expressed or drawn in Indian currency but payable in any foreign currency;

(e) foreign security means any security 9[created or issued] elsewhere than in India, and any security the principal of or interest on which is payable in any foreign currency or elsewhere than in India;

(f) gold includes gold in the form of coin, whether legal tender or not, or in the form of bullion or ingot, whether refined or not 10[and jewellery or articles made wholly or mainly of gold];

(g) Indian currency means currency which is expressed or drawn in Indian rupees 11[but does not include special bank notes and special one-rupee notes issued under Section 28-A of the Reserve Bank of India Act, 1934 (2 of 1934)];

12[(gg) Indian customs waters means the waters extending into the sea to a distance of twelve nautical miles measured from the appropriate base line on the coast of India and includes any bay, gulf, harbour, creek or tidal river;]

(h) owner , in relation to any security, includes any person who has power to sell or transfer the security, or who has the custody thereof or who receives, whether on his own behalf or on behalf of any other person, dividends or interest thereon, and who has any interest therein, and in a case where any security is held on any trust or dividends or interest thereon are paid into a trust fund, also includes any trustee or any person entitled to enforce the performance of the trust or to revoke or vary, with or without the consent of any other person, the trust or any terms thereof, or to control the investment of the trust moneys;

(i) prescribed means prescribed by rules made under this Act;

(j) Reserve Bank means the Reserve Bank of India;

(k) security means shares, stocks, bonds, debentures, debenture stock and Government securities, as defined in the 13[Public Debt Act, 1944 (18 of 1944)], 14[savings certificates to which the Government Savings Certificates Act, 1959, (46 of 1959) applies] deposit receipts in respect of deposits of securities, and units or sub-units of unit trusts 15[and includes certificates of title to securities], but does not include bills of exchange or promissory notes other than Government promissory notes;

(l) silver 16[includes] silver bullion or ingot, silver sheets an plates which have undergone no process of manufacture subsequent to rolling and uncurrent silver coin which is not legal tender in India or elsewhere 17[and jewellery or articles made wholly or mainly of silver];

18[* * *]

19[(m)] transfer includes, in relation to any security, transfer by way of loan or security.

20[* * *]

21[2-A. Officers of Enforcement. The Central Government may appoint a Director of Enforcement and as many Deputy Directors of Enforcement, Assistant Directors of Enforcement and such other officers as it thinks fit to be officers of Enforcement for the purpose of enforcing the provisions of this Act.]

22[2-B. Entrustment of functions of Director or other officer of Enforcement. The Central Government may, by order and subject to such limitations and conditions as it thinks fit to impose, authorise any officer of Enforcement, or any officer of customs or any Central Excise Officer or any police officer or any other officer of the Central Government or a State Government to exercise such of the powers and discharge such of the duties of the Director of Enforcement or any other officer of Enforcement under this Act as may be specified in the order.]

(1) The Reserve Bank may, on application made to it in this behalf, authorise any person to deal in foreign exchange.

(2) An authorisation under this section 23[shall be in writing and]

(i) may authorise dealings in all foreign currencies or may be restricted to authorising dealings in specified foreign currencies only;

(ii) may authorise transaction of all descriptions in foreign currencies or may be restricted to authorising special transactions only;

(iii) may be granted to be effective for a specified period, or within specified amounts, and may in all cases be revoked for reasons appearing to it sufficient by the Reserve Bank.

(3) An authorised dealer shall in all his dealings in foreign exchange comply with such general or special directions or instruction as the Reserve Bank may from time to time think fit to give, and, except with the previous permission of the Reserve Bank, an authorised dealer shall not engage in any transaction involving any foreign exchange which is not in conformity with the terms of his authorisation under this section.

(4) An authorised dealer shall, before undertaking any transaction in foreign exchange on behalf of any person, require that person to make such declarations and to give such information as will reasonably satisfy him that the transaction will not involve, and is not designed for the purpose of any contravention or evasion of the provisions of this Act or any rules, directions or orders made thereunder, and where the said person refuses to comply with any such requirement or makes only unsatisfactory compliance therewith, the authorised dealer shall refuse to undertake the transaction and shall, if he has reason to believe that any such contravention or evasion as aforesaid is contemplated by the person, report the matter to the Reserve Bank.

(1) 24Except with the previous general or special permission of the Reserve Bank no person other than an authorised dealer shall in 25[India], and no person resident in 26[India] other than an authorised dealer shall outside 27[India], 28[buy or otherwise acquire or borrow from] or 29[sell or otherwise transfer or lend to] or exchange with, any person not being an authorised dealer, any foreign exchange.

(2) Except with the previous general or special permission of the Reserve Bank, no person whether an authorised dealer or otherwise shall enter into any transaction which provides for the conversion of Indian currency into foreign currency or foreign currency into Indian currency at rates of exchange other than the rates for the time being authorised by the Reserve Bank.

(3) Where any foreign exchange is acquired by any person other than an authorised dealer for any particular purpose, or where any person has been permitted conditionally to acquire foreign exchange, the said person shall not use the foreign exchange so acquired otherwise than for that purpose or, as the case may be, fall to comply with any condition to which the permission granted to him is subject, and where any foreign exchange so acquired cannot be so used or, as the case may be, the conditions cannot be complied with, the said person shall without delay sell the foreign exchange to an authorised dealer.

(4) Nothing in this section shall be deemed to prevent a person from buying from any post office, in accordance with any law or rules made thereunder for the time being in force, any foreign exchange in the form of postal orders or money orders.

(1) Save as may be provided in and in accordance with any general or special exemption30 from the provisions of this sub-section which may be granted conditionally or unconditionally by the Reserve Bank, no person in, or resident in, 31[India] shall

(a) make any payment to or for the credit of any person resident outside India;

32[(aa) receive, otherwise than through an authorised dealer, any payment by order or on behalf of any person resident outside India;]

(b) draw, issue or negotiate any bill of exchange or promissory note or acknowledge any debt, so that a right (whether actual or contingent) to receive a payment is created or transferred in favour of any person resident outside India;

(c) make any payment to or for the credit of any person by order or on behalf of any person resident India;

(d) place any sum to the credit of any person resident outside India;

(e) make any payment to or for the credit of any person as consideration for or in association with

(i) the receipt by any person of a payment or the acquisition by any person of property outside India;

(ii) the creation or transfer in favour of any person of a right whether actual or contingent to receive a payment or acquire property outside India;

(f) draw, issue or negotiate any bill of exchange or promissory note, transfer any security or acknowledge any debt, so that a right (whether actual or contingent) to receive a payment is created or transferred in favour of any person as consideration for or in association with any matter referred to in clause (e)

(2) Nothing in sub-section (1) shall render unlawful

(a) the making of any payment already authorised, either with foreign exchange obtained from an authorised dealer under Section 4 or with foreign exchange retained by a person in pursuance of an authorisation granted by the Reserve Bank;

(b) the making of any payment with foreign exchange received by way of salary or payment for services not arising from business in, or anything done while in, India.

(3) Nothing in this section shall restrict the doing by any person of anything within the scope of any authorisation or exemption granted under this Act.

(4) For the purposes of this section, security also includes coupons or warrants representing dividends or interest and life or endowment insurance policies.

(1) Where an exemption from the provisions of Section 5 is granted by the Reserve Bank in respect of payment of any sum to any person resident outside India and the exemption is made subject to the condition that the payment is made to a blocked account

(a) the payment shall be made to a blocked account in the name of that person in such manner as the Reserve Bank may general or special order direct; and

(b) the crediting of that sum to that account shall, to the extent of the sum credited, be a good discharge to the person making the payment.

(2) No sum standing at the credit of a blocked account shall be drawn on except in accordance with any general or special permission which may be granted conditionally or otherwise by the Reserve Bank.

(3) In this section blocked account means an account opened as a blocked account at any office or branch in 33[India] of a bank authorised in this behalf by the Reserve Bank, or an account blocked, whether before or after the commencement of this Act, by order of the Reserve Bank.

(1) Where in the opinion of the Central Government it is necessary or expedient to regulate payments due to person resident in any territory, the Central Government may, by notification in the Official Gazette, direct that such payments or any class of such payments shall be maintained for the purpose by the Reserve bank or an authorised dealer specially authorised by the Reserve Bank in this behalf.

(2) The credit of a sum to a special account shall, to the extent of the sum credited, by a good discharge to the person making the payment:

Provided that where the liability of the person making the payment is to make the payment in foreign currency, the extent of the discharge shall be ascertained by converting the amount paid into that currency at such rate of exchange as is for the time being fixed or authorised by the Reserve Bank.

(3) The sum standing to the credit of any special account shall from time to time be applied

(a) where any agreement is entered into between the Central Government and the Government of the territory to which the aforesaid notification relates for the regulation of payments between persons resident in 34[India] and in that territory, in such manner as the Reserve Bank, having regard to the provisions of such agreement, may direct, or

(b) where no such agreement is entered into, for the purpose of paying wholly or partly, and in such order of preference and at such time as the Central Government may direct, debts due from the persons resident in the said territory to persons resident in 35[India] or in such other territories as the Central Government may by order specify in this behalf.

(1) The Central Government may, by notification in the Official Gazette, order that, subject to such exemptions, if any, as may be contained in the notification, no person shall, except with the general or special permission of the Reserve Bank and on payment of the fee, if any, prescribed bring or send into 36[India] any gold or silver or any currency notes or bank notes or coin whether Indian or foreign.

37[Explanation. The bringing or sending into any port or place in 38[India] of any such article as aforesaid intended to be taken out of 39[India] without being removed from the ship or conveyance in which it is being carried shall nonetheless be deemed to be a bringing, or as the case may be sending, into 40[India] of that article for the purposes of this section.]

(2) No person shall, except with the general or special permission of the Reserve Bank or the written permission of a person authorised in this behalf by the Reserve Bank, take or send out of 41[India] any gold 42[jewellery], 43[or precious stones or Indian currency] or foreign exchange other than foreign exchange 44[obtained by him from an authorised dealer].

45[* * *]

The Central Government may, by notification in the Official Gazette, order every person in, or resident in, 46[India]

(a) who owns 47[or holds] such foreign exchange as may be specified in the notification, to offer it, or cause it to be offered for sale to the Reserve Bank on behalf of the Central Government or to such person, as the Reserve Bank may authorise for the purpose, at such price as the Central Government may fix, being a price which is in the opinion of the Central Government not less than the market rate of the foreign exchange when it is offered for sale;

(b) who is entitled to assign any right to receive such foreign exchange as may be specified in the notification, to transfer that right to the Reserve Bank on behalf of the Central Government on payment of such consideration therefor as the Central Government may fix:

Provided that the Central Government may by the said notification or another order exempt any persons or class of persons from the operation of such order:

Provided further that nothing in this section shall apply to any foreign exchange acquired by a person from an authorised dealer and retained by him with the permission of the Reserve Bank for any purpose.

(1) No person who has a right to receive any foreign exchange or to receive from a person resident outside India a payment in rupees shall, except with the general or special permission of the Reserve Bank, 48[do or refrain from doing anything or take or refrain from taking any action which has the effect of securing]

(a) that the receipt by him of the whole or part of that foreign exchange or payment is delayed, or

(b) that the foreign exchange or payment ceases in whole or in part to be receivable by him.

(2) Where a person has failed to comply with the requirements of sub-section (1) in relation to any foreign exchange or payment in rupees, the Reserve Bank may give to him such directions as appear to be expedient for the purpose of securing the receipt of the foreign exchange or payment as the case may be.

The Central Government may, by notification in the Official Gazette, impose such conditions as it thinks necessary or expedient on the use or disposal of or dealings in gold and silver prior to, or at time of, import into 49[India].

50[(1) The Central Government may, by notification in the Official Gazette, prohibit the taking or sending out by land, sea or air (hereafter in this section referred to as export) of all goods or of any goods or class of goods specified in the notification from India directly or indirectly to any place so specified unless the exporter furnishes to the prescribed authority a declaration in the prescribed form supported by such evidence as may be prescribed or so specified and true in all material particulars which, among others, shall include the amount representing

(i) the full export value of the goods; or

(ii) if the full export value of the goods is not ascertainable at the time of export, the value which the exporter, having regard to the prevailing market conditions, expects to receive on the sale of the goods in the course of international trade,

and affirms in the said declaration that the full export value of the goods (whether ascertainable at the time of export or not) has been, or will within the prescribed period be, paid in the prescribed manner.]

(2) Where any export of goods has been made to which a notification under sub-section (1) applies, no person entitled to sell, or procure the sale of, the said goods shall, except with the permission of the Reserve Bank, 51[do or refrain from doing anything or take or refrain from taking any action which has the effect of securing that]

(a) the sale of the goods is delayed to an extent which is unreasonable having regard to the ordinary course of trade, or

(b) payment for the goods is made otherwise than in the prescribed manner or does not represent the full amount payable by the foreign buyer in respect of the goods, subject to such deductions, if any, as may be allowed by the Reserve Bank, or is delayed to such extent as aforesaid:

Provided that no proceedings in respect of any contravention of this sub-section shall be instituted unless the prescribed period has expired and payment for the goods representing the full amount as aforesaid has not been made in the prescribed manner.

(3) Where in relation to any such goods the said period has expired and the goods have not been sold and payment therefor has been made as aforesaid, the Reserve Bank may give to any person entitled to sell the goods or to procure the sale thereof, such directions as appear to it to be expedient for the purpose of securing the sale of the goods and payment therefor as aforesaid, and without prejudice to the generality of the foregoing provision, may direct that the goods shall be assigned to the Central Government or to a person specified in the directions.

(4) Where any goods are assigned in accordance with sub-section (3), the Central Government shall pay to the person assigning them such sum in consideration of the net sum recovered by or on behalf of the Central Government in respect of the goods as may be determined by the Central Government.

(5) Where in relation to any such goods the value as stated in the invoice is less than the amount which in the opinion of the Reserve Bank represents the full export value of those goods, the Reserve Bank may issue an order requiring the person holding the shipping documents to retain possession thereof until such time as the exporter of the goods has made arrangements for the Reserve Bank or a person authorised by the Reserve Bank to receive on behalf of the exporter payment in the prescribed manner of an amount which represents in the Reserve Bank the full export value of the goods.

(6) For the purpose of ensuring compliance with the provisions of this section and any orders or directions made thereunder, the Reserve Bank may require any person making any export of goods to which a notification under sub-section (1) applies to exhibit contracts with his foreign buyer or other evidence to show that the full amount payable by the said buyer in respect of the goods has been, or will within the prescribed period be, paid in the prescribed manner.

(1) 52[Notwithstanding anything contained in Section 81 of the Companies Act, 1956 (1 of 1956)], except with the general or special permission of the Reserve Bank,

(a) take or send any security to any place outside India;

(b) transfer any security or create or transfer any interest in a security to or in favour of a person resident outside India;

(c) transfer any security from a register in 53[India] to a register outside India or do any act which is calculated to secure, or forms part of a series of acts which together are calculated to secure, the substitution for any security which is either in, or registered in the States, of any security which is either outside or registered outside India;

(d) issue, whether in 54[India] or elsewhere, any security which is registered or to be registered in 55[India], to a person resident outside India.

56[(e) acquire, hold or dispose of any foreign security.]

(2) Where the holder of a security is a nominee, neither he nor any person through whose agency the exercise of all or any of the holder's rights in respect of the security is controlled shall, except with the general or special permission of the Reserve Bank, do any act whereby he recognises or gives effect to the substitution of another person as the person from whom he directly receives instructions, unless both the persons previously instructing him and the persons substituted for that person were, immediately before the substitution, resident in India.

(3) The Reserve Bank may, for the purpose of securing that the provisions of this section are not evaded, require that the person transferring any security and the person to whom such security is transferred shall subscribe to a declaration that the transferee is not resident outside India.

(4) Notwithstanding anything contained in any other law, no person shall, except with the permission of the Reserve Bank,

(a) enter any transfer of securities in any register or book in which securities are registered or inscribed if he has any ground for suspecting that the transfer involves any contravention of the provisions of this section, or

(b) enter in any such register or book, in respect of any security, whether in connection with the issue or transfer of the security or otherwise, an address outside India except by way of substitution for any such address in the same country or for the purpose of any transaction for which permission has been granted under this section with knowledge that it involves entry of the said address. 57[or]

58[(c) transfer any share from a register outside India to a register in India.]

59[(4-A) Notwithstanding anything contained in any other law, no transfer of any share of a company registered in India made by a person resident outside India to another person also resident outside India shall be valid unless such transfer is confirmed by the Reserve Bank on an application made to it in this behalf by the transferor or the transferee.]

(5) For the purposes of this section,

(a) holder in relation to a bearer security means the person having physical custody of the security; provided that, where a bearer security is deposited with any person in a locked or sealed receptacle from which the person with whom it is deposited is not entitled to remove it without the authority of some other person, that other person shall be deemed to be the holder of the security;

(b) nominee means a holder of any security (including a bearer security) or any coupon representing dividends or interest who, as respects the exercise of any rights in respect of the security or coupon, is not entitled to exercise those rights except in accordance with instructions given by some other person, and a person holding a security or coupon as a nominee shall be deemed to act as nominee for the person who is entitled to give instructions either directly or through the agency of one or more persons, as to the exercise by the holder of the security or coupon of any rights in respect thereof and is not, in so doing, himself under a duty to comply with instructions given by some other person;

(c) security also includes coupons or warrants representing dividends or interest, and life or endowment insurance policies.

60[13-A. Restricitions on payment in respect of certain securities. Notwithstanding anything contained in any other law or in any contract, agreement or other instrument, the holder of any Government security, as defined in the Public Debt Act, 1944 (18 of 1944), created and issued for the purpose of raising a public loan before the 15th day of August, 1947, in respect of which the principal or interest or both are for the time being payable outside India in any country or place notified in this behalf by the Central Government shall not be entitled, except with the general or special permission of the Reserve Bank, to have any such payment made at any place in India.

Explanation. In this section, holder shall have the same meaning as in clause (a) of sub-section (5) of Section 13.]

(1) The Central Government may, by notification in the Official Gazette, order every person by whom or on whose behalf a security or 61[certificate] of title to a security specified in the order is held in 62[India] to cause the said security or 63[certificate] of title to be kept in the custody of an authorised depository named in the order:

Provided that the Reserve Bank may by order in writing permit any such security to be withdrawn from the custody of the authorised depository subject to such conditions as may be specified in the order.

(2) No authorised depository may part with any security covered by an order under sub-section (1) without the general or special permission of the Reserve Bank except to, or to the order of, another authorised depository.

(3) Except with the general or special permission of the Reserve Bank, no authorised depository shall

(a) accept or part with any security covered by an order under sub-section (1) whereby the security is transferred into the name of a person resident outside India, or

(b) do any act whereby he recognises or gives effect to the substitution of another person as the person from whom he directly receives instructions relating to such security unless the person previously so instructing him and the person substituted for that person were immediately before the substitution resident in India.

(4) Except with the general or special permission of the Reserve Bank, no person shall buy, sell or transfer any security, or 64[certificate] of title to a security, covered by an order under sub-section (1) unless such security or 65[certificate] of title has been deposited in accordance with the order.

(5) Except with the general or special permission of the Reserve bank, no capital moneys, interest or dividends in respects of any security covered by an order under sub-section (1) shall be paid in 66[India] except to or to the order of the authorised depository having the custody security.

(6) For the purposes of this section,

(a) authorised depository means a person notified by the Central Government to be entitled accept the custody of securities and 67[certificates] of title to securities, and

(b) security shall include coupons.

The Central Government may, by notification in the Official Gazette, order that except with the general or special permission of the Reserve Bank 68[no person shall, in India, and no person resident in India shall, outside India, create or issue any bearer certificate or coupon or so alter any document that it becomes a bearer certificate or coupon].

(1) Subject to any exemptions that may be contained in the notification, the Central Government may, if it is of opinion that it is expedient so to do for the purpose of strengthening its foreign exchange position by notification in the Official Gazette,

(a) order the transfer to itself of any foreign securities specified in the notification at a price so specified, being a price which is, in the opinion of the Central Government, not less than the market value of the securities on the date of the notification, or

(b) direct the owner of any foreign securities specified in the notification to sell or procure the sale of the securities and thereafter to offer or cause to be offered the net and thereafter to offer or cause to be offered the net foreign exchange proceeds of the sale to the Reserve Bank on behalf of the Central Government or to such person as the Reserve Bank may authorise for the purpose, at such price as the Central Government may fix, being a price which is in the opinion of the Central Government not less than the market rate of the foreign exchange when it is offered for sale.

(2) On the issue of a notification under clause (a) of sub-section (1),

(a) the securities to which the notification relates shall forthwith vest in the Central Government free from any mortgage, pledge or charge, and the Central Government may deal with them in such manner as it thinks fit;

(b) the owner of any of the securities to which the notification relates and any person who is responsible for keeping any registers or books in which any of those securities are registered or inscribed, or who is otherwise concerned with the registration or inscription of any of those securities, shall do all such things as are necessary or as the Central Government or the Reserve Bank may order to be done, for the purpose of securing that

(i) the securities and any 69[certificates] of title relating thereto are delivered to the Central Government and, in the case of registered or inscribed securities, that the securities are registered or inscribed in the name of the Central Government or of such nominee of the Central Government as it may specify, and

(ii) any dividends or interest on those securities becoming payable on or after the date of the issue of the notification are paid to the Central Government or its nominee as aforesaid and where in the case of any security payable to bearer which is delivered in pursuance of the said notification, any coupons representing any such dividends or interest are not delivered with the security, such reduction in the price payable therefor shall be made as the Central Government thinks fit:

Provided that where the price specified in the notification in relation to any security is ex-dividend or ex-interest, this sub-clause shall not apply to that dividend or interest or to any coupon representing it.

(3) A certificate signed by any person authorised in this behalf by the Central Government that any specified securities are securities transferred to the Central Government under this section shall be treated by all persons concerned as conclusive evidence that the securities have been so transferred.

(1) No person resident in the States shall, except with the general or special permission of the Reserve Bank, 70[settle, or make a gift of, any property so that a person who at the time of the settlement or the making of the gift] is resident outside India, elsewhere than in territories notified in this behalf by the Reserve Bank, will have an interest in the property, or exercise 71[* * *] any power for payment in favour of a person who at the time of the exercise of the power is resident outside India elsewhere than in such notified territories.

72[(2) Any settlement or gift made or any power exercised as aforesaid without the permission of the Reserve Bank shall not be invalid merely on the ground that such permission has not been obtained, but no payment or remittance in pursuance of such settlement, gift or power shall be made to, or for the credit of, or on behalf of any person resident outside India, elsewhere than in territories notified by the Reserve Bank, except with the general or special permission of the Reserve Bank which may be granted conditionally or unconditionally.]

73(1) Where there is served on any person resident in 74[India] a notice in writing that the Central Government or the Reserve Bank wishes any such requirements as are hereinafter mentioned to be complied with by any such company as is specified in Explanation I [hereafter in this sub-section and in sub-section (2) referred to as a foreign company] and that person can by doing or refraining from doing any act

(a) cause the foreign company to comply with any of the requirements, or

(b) remove any obstacle to the foreign company complying with any of the requirements, or

(c) render it in any respect more probable that the foreign company will comply with any of the requirements,

then, except so far as permission to the contrary may be given by the Central Government or, as the case may be, by the Reserve Bank, that person shall do or, as the case may be, refrain form doing that act.

(2) The requirements with respect to which a notice under sub-section (1) may be given are as follows, that is to say, the foreign company shall

(i) furnish to the Central Government or, as the case may be to the Reserve Bank such particulars as to its assets and business as may be mentioned in the notice;

(ii) sell or procure the sale to an authorised dealer of any foreign exchange mentioned in the notice, being foreign exchange which it is entitled to sell or of which it is entitled to procure the sale;

(iii) declare and pay such dividend as may be mentioned in the notice;

(iv) realise any of its assets mentioned in the notice in such manner as may be so mentioned;

(v) refrain from selling or transferring or doing anything which affects its rights or powers in relation to any such instruments or securities as may be mentioned in the notice.

(3) Except with the general or special permission of the Reserve Bank, no person resident in the States shall do any act whereby 75[any business] which is controlled by persons resident in India ceases to be so controlled.

76[(3-A) Notwithstanding anything contained in any other law, no transfer of an interest in any business in India made by a person resident outside India to any person also resident outside India shall be valid unless such transfer is confirmed by the Reserve Bank on an application made to it in this behalf by the transferor or the transferee.

(3-B) Except with the general or special permission of the Reserve Bank, no person resident in India shall transfer any interest in any business in India, or create any interest in such business, to or in favour of a national of a foreign State.]

77[(3-C) Except with the general or special permission of the Central Government or the Reserve Bank, no person resident in India shall give a guarantee in respect of any debt or other obligation or liability of a person resident outside India.]

(4) Except with the general or special permission of the Reserve Bank, no person resident in 78[India] shall lend any money either to 79[any firm or company] (other than a banking company) which is controlled directly or indirectly by persons resident outside India elsewhere than in the territories notified in this behalf by the Reserve Bank or to 80[any person controlling such firm or company].

Explanation I. The companies referred to in sub-section (1) are companies not incorporated under any law in force in 81[India] in the case of which any of the following conditions is fulfilled:

(a) that the company is by any means controlled (directly or indirectly) by persons resident in 82[India]; or

(b) that more than one-half of the sums which, on a liquidation thereof, would be receivable by holders or share or loan capital, would be receivable directly or indirectly by, or for the benefit of, persons resident in 83[India]; or

(c) that more than one-half of the assets which, on a liquidation thereof, would be available for distribution after the payment of creditors, would be receivable directly or indirectly by, or for the benefit of persons resident in 84[India]; or

(d) that more than one-half

(i) of the interest payable on its loans and loan capital, if any, or

(ii) of the dividends payable on its preference share capital, if any, or

(iii) of the dividends payable on its share capital, if any, not being preference share capital,

is receivable directly or indirectly by, or for the benefit of, persons resident in 85[India].

Explanations II. Where the identity of the persons by whom, or for whose benefit, any sum, assets, interest or dividends are directly or indirectly receivable depends on the exercise by any person resident in 86[India] of a power vested in him in that behalf, the sum, assets, interest or dividends shall, for the purposes of this sub-section, be deemed to be receivable directly or indirectly by, or for the benefit of, persons resident in 87[India].]

88[18-A. Restriction on appointment of certain companies and firms as agents or technical advisers in India. Without prejudice to the provisions of Section 21 and notwithstanding anything contained in any other provision of this Act, a company (other than a banking company) which is not incorporated under any law in force in India or which is controlled directly or indirectly by persons resident outside India, or any branch or office of any such company in India, or a firm consisting wholly or in part of persons resident outside India, shall not accept appointment as

(a) agent in India of any person, company or firm in the trading or commercial transactions thereof, or

(b) technical or management adviser in India of any person, company or firm,

except with the general or special permission of the Central Government or the Reserve Bank; and where such appointment is accepted without such permission, it shall be void.]

89[18-B. Regulation of booking of passages outside India. No airline, shipping company or travel agent shall, except with the general or special permission of the Reserve Bank and subject to such conditions, if any, as may be specified therein, book for any person a passage for a journey the whole or any part of which is outside India.]

(1) The Central Government may, at any time by notification in the Official Gazette, direct owners, subject to such exceptions, if any, as may be specified in the notification, of such foreign exchange or foreign securities as may be so specified, to make a return thereof to the Reserve Bank within such period, and giving such particulars, as may be so specified.

90[(2) Where for the purposes of this Act the Central Government or the Reserve Bank considers it necessary or expedient to obtain and examine any information, book or other document in the possession of any person or which in the opinion of the Central Government or the Reserve Bank it is possible for such person to obtain and furnish, the Central Government or, as the case may be, the Reserve Bank may, by order in writing, require any such person (whose name shall be specified in the order) to furnish, or to obtain and furnish, to the Central Government or the Reserve Bank or any person specified in the order with such information, book or other document.

(3) 91[* * *]

(4) 92[* * *]

93[19-A. Power to search suspected persons. (1) If any officer of Enforcement authorised in this behalf by the Central Government, by general or special order, has reason to believe that any person has secreted about his person any documents which will be useful for or relevant to any proceeding under this Act, he may search that person.

(2) When any officer of Enforcement is about to search any person under the provisions of this section the officer of Enforcement shall, if such person so requires, take such person without unnecessary delay to the nearest gazetted officer of Enforcement superior in rank to him or a magistrate.

(3) If such requisition is made, the officer of Enforcement may detain the person making it until he can bring him before the gazetted officer of Enforcement or magistrate referred to in sub-section (2).

(4) The gazetted officer of Enforcement or the magistrate before whom any such person is brought shall, if he sees no reasonable ground for search, forthwith discharge the person but otherwise shall direct that search be made.

(5) Before making a search under the provisions of this section, the officer of Enforcement shall call upon two or more persons to attend and witness the search and may issue an order in writing to them or any of them so to do; and the search shall be made in the presence of such persons and a list of all documents seized in the course of such search shall be prepared by such officer or other person and signed by such witnesses.

(6) No female shall be searched by any one excepting a female.

(7) In this section and in Sections 19-C to 19-G, the expression document includes Indian currency, foreign exchange and books of account.]

94[19-B. Power to arrest. (1) If any officer of Enforcement authorised in this behalf by the Central Government, by general or special order, has reason to believe that any person in India or within the Indian customs waters has been guilty of an offence punishable under this Act, he may arrest such person and shall, as soon as may be, inform him of the grounds for such arrest.

(2) Every person arrested under sub-section (1) shall, without unnecessary delay, be taken to a magistrate.

(3) Where any officer of Enforcement has arrested any person under sub-section (1), he shall, for the purpose of releasing such person on bail or otherwise, have the same powers and be subject to the same provisions as the officer-in-charge of a police station has, and is subject to, under the Code of Criminal Procedure, 1898 (5 of 1898).]

95[19-C. Power to stop and search conveyances. Where an officer of Enforcement authorised in this behalf by the Central Government, by general or special order, has reason to believe that any aircraft, vehicle or animal in India or any vessel in India or within the Indian customs waters has been, is being, or is about to be, used in the commission of an offence under this Act, or that any documents which will be useful for or relevant to any proceeding under this Act is secreted therein, he may at any time stop any such vehicle or animal or vessel or, in the case of an aircraft, compel it to land, and

(a) rummage and search any part of the aircraft, vehicle or vessel;

(b) examine and search any goods in the aircraft, vehicle or vessel or on the animal;

(c) seize any such document as is referred to above;

(d) break open the lock of any door or package for exercising the powers conferred by clauses (a), (b) and (c) if the keys are withheld.]

96[19-D. Power to search premises. (1) If an officer of Enforcement, not below the rank of Assistant Director of Enforcement, has reason to believe that any documents which in his opinion will be useful for or relevant to any proceeding under this Act, are secreted in any place he may authorise any officer of Enforcement to search for and seize or may himself search for and seize such documents.

(2) The provisions of the Code of Criminal Procedure, 1898 (5 of 1898), relating to searches shall, so far as may be, apply to searches under this section subject to the modification that sub-section (5) of Section 165 of the said Code shall have effect as if for the word Magistrate , wherever it occurs, the words Director of Enforcement or other officer exercising his powers were substituted.]

97[19-E. Power to examine persons. The Director of Enforcement may, during the course of any inquiry in connection with any offence under this Act,

(a) require any person to produce or deliver any document relevant to the inquiry;

(b) examine any person acquainted with the facts and circumstances of the case.]

98[19-F. Power to summon persons to give evidence and produce documents. (1) The Director of Enforcement shall have power to summon any person whose attendance he considers necessary either to give evidence or to produce a document in any inquiry which such officer is making in connection with any offence under this Act.

(2) A summons to produce documents may be for the production of certain specified documents or for the production of all documents of a certain description in the possession or under the control of the person summoned.

(3) All persons so summoned shall be bound to attend either in person or by an authorised agent, as such officer may direct; and all persons so summoned shall be bound to state the truth upon any subject respecting which they are examined or make statements and produce such documents as may be required:

Provided that the exemption under Section 132 of the Code of Civil Procedure, 1908 (5 of 1908), shall be applicable to any requisition for attendance under this section.

(4) Every such inquiry as aforesaid shall be deemed to be a judicial proceeding within the meaning of Sections 193 and 228 of the Indian Penal Code (45 of 1860).]

99[19-G. Custody of documents. 100[Where in pursuance of an order made under sub-section (2) of Section 19 of the provisions of Section 19-A, 19-C or 19-D, or of a requisition or summons under Section 19-E or 19-F, any document is furnished or seized and the Director of Enforcement or any other officer of Enforcement has reason to believe that the said document would be evidence of the contravention of any of the provisions of this Act or of any rule, direction or order made thereunder, and that it would be necessary to retain the document in his custody, he may so retain the said document for a period not exceeding one year or if, before the expiry of the said period of one year, any proceedings under Section 23]

(a) have been commenced before him, until the disposal of those proceedings, 101[including the proceedings, if any, before the Appellate Board and the High Court] or

(b) have been commenced before a Court, until the document has been filed in that Court.]

102[Explanation. In computing the period of one year during which a document (hereafter in this Explanation referred to as the said document) may be retained under this section, in any case where by reason of an injunction or order of any court (whether such injunction or order is in relation to the said document or is in relation to any other document reference to which would be necessary for examining or using the said document),

(a) the said document could not be examined fully for the purpose of determining whether it would be evidence of the contravention of any of the provisions of this Act or of any rule, direction or order made thereunder, or

(b) the said document could not be used for commencing any proceedings under Section 23, or

(c) the proceedings under Section 23 could not be commenced, the time of the continuance of the injunction or order, the day on which it was issued or made and the day on which it was withdrawn, shall be excluded.]

103[19-H. Inspection. (1) The Central Government or the Reserve Bank may, at any time cause an inspection to be made by one or more of its officers, of the books and accounts and other documents of any authorised dealer.

(2) It shall be the duty of every authorised dealer and, where the authorised dealer is a company or a firm, of every director, partner or other officer of the authorised dealer to produce to any officer making an inspection under sub-section (1) all such books, accounts and other documents in his custody or power and to furnish him with any statement or information relating to the affairs of the authorised dealer as the said officer may require of him within such time as the said officer may specify.

(3) Any person making an inspection under sub-section (1) may examine on oath any authorised dealer or his agent or, where the authorised dealer is a company or a firm, any director, partner or other officer of the authorised dealer in relation to its business.

(4) If any person fails to produce any book, account or other document or to furnish any statement or information relating to the authorised dealer which, under sub-section (2) it is his duty to produce or furnish, or to answer any question relating to the business of the authorised dealer which he is asked by an officer making an inspection under this section, he shall be deemed to have contravened the provisions of this Act.]

104[19-I. Prohibition of disclosure of documents or information except in certain cases. (1) If in the course of an inquiry under this Act, the Director of Enforcement is of the opinion that the contents of any document in his possession or control would be useful for, or relevant to, any proceeding which is in progress or may be started under any other law for the time being in force, he may disclose such document or any information contained therein as he thinks fit to an officer duly authorised by or under such other law.

(2) If any officer of Enforcement, except in the discharge in good faith of his duty as such officer in accordance with sub-section (1), or in compliance with any requisition made under any law for the time being in force, discloses any document or information obtained by him in his official capacity in the course of any inquiry under this Act, he shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both.]

105[19-J. Special provision regarding certain dealings in foreign exchange. (1) If any person is found or is proved to have been in possession of any foreign exchange exceeding in value two hundred and fifty rupees, the burden of proving that the foreign exchange came into his possession lawfully shall be on him.

(2) Notwithstanding anything contained in the Code of Criminal Procedure, 1898 (5 of 1898), any police officer not below the rank of Inspector of Police or any other officer of the Central Government or a State Government authorised by the Central Government in this behalf may enter any public place and search and arrest without warrant any person found therein who is reasonably suspected of having committed or of committing or of being about to commit a contravention of sub-section (1) of Section 4.

Explanation. For the purposes of this sub-section, the expression public place includes any public conveyance, any hotel, any shop or any other place intended for use by, or accessible to, the public.

(3) Where any person is arrested under sub-section (2) by an officer other than a police officer, such officer shall, without unnecessary delay, take or send the person arrested before a magistrate having jurisdiction in the case or before the officer-in-charge of a police station.

(4) The provisions of the Code of Criminal Procedure, 1898 (5 of 1898), shall, subject to the provisions of this section, apply, so far as may be, in relation to any entry, search or arrest, made under this section.

(5) The provisions of this section shall have effect notwithstanding anything inconsistent therewith contained in any other provision of this Act.]

(1) For the purposes of this Act and of any rules, directions or orders made thereunder

(a) until the Reserve Bank by general or special order otherwise directs, any person who has at any time after the commencement of this Act been resident in India shall be treated as still being resident in India and if such direction is given in relation to any such person the Reserve Bank may by the same or a subsequent direction, declare the territory in which he shall be treated as being resident;

(b) in the case of any person to whom clause (a) does not apply the Reserve Bank may by general or special order declare the territory in which he shall be treated as being resident;

(c) in the case of any person resident in 106[India] who leaves India, the Reserve Bank may give a direction to any bank that until the direction is revoked, any sum from time to time standing to the credit of that person and any security held on his behalf at any office or branch of that bank in 107[India] specified in the direction, shall not be dealt with except with the permission of the Reserve Bank;

(d) any transactions with a branch of any business, whether carried on by a body corporate or otherwise, shall be treated in all respects as if the branch were a body corporate resident where the branch is situated;

(e) the making of any book entry or other statement recording a debit against a branch of any business in favour of the head office or any other branch of that business shall be treated as the acknowledgment of a debt whereby a right is created in favour of person resident where the head office or other branch is situated.

(2) Nothing in this Act relating to the payment of any price or sum by the Central Government shall be construed as requiring the Central Government to pay that price or sum otherwise than in Indian currency or otherwise than in India.

(3) The Reserve Bank may give directions in regard to the making of payments and the doing of other acts by bankers, authorised dealers, travel agents or stock brokers and other persons who are authorised by the Reserve Bank to do anything in pursuance of this Act in the course of their business, as appear to it to be necessary or expedient for the purpose of securing compliance with the provisions of this Act and any rules, orders or directions made thereunder.

(1) No person shall enter into any contract or agreement which would directly or indirectly evade or avoid in any way the operation of any provision of this Act or of any rule, direction or order made thereunder.

(2) Any provision of, or having effect under, this Act that a thing shall not be done without the permission of the Central Government or the Reserve Bank, shall not render invalid any agreement by any person to do that thing, if it is a term of the agreement that that thing shall not be done unless permission is granted by the Central Government or the Reserve Bank, as the case may be; and it shall be an implied term of every contract governed by the law of any part of 108[India] that anything agreed to be done by any term of that contract which is prohibited to be done by or under any of the provisions of this Act except with the permission of the Central Government or the Reserve Bank, shall not be done unless such permission is granted.

(3) Neither the provisions of this Act nor any term (whether expressed or implied) contained in any contract that anything for which the permission of the Central Government or the Reserve Bank is required by the said provisions shall not be done without that permission, shall prevent legal proceedings being brought in 109[India], to recover any sum which, apart from the said provisions and any such term, would be due, whether as a debt, damages or otherwise, but

(a) the said provisions shall apply to sums required to be paid by any judgment or order of any Court as they apply in relation to other sums; and

(b) no steps shall be taken for the purpose of enforcing any judgment or order for the payment of any sum to which the said provisions apply except as respects so much thereof as the Central Government or the Reserve Bank, as the case may be, may permit to be paid; and

(c) for the purpose of considering whether or not to grant such permission, the Central Government or the Reserve Bank, as the case may be, may require the person entitled to the benefit of the judgment or order, and the debtor under the judgment or order, to produce such documents and to give such information as may be specified in the requirement.

(4) Notwithstanding anything in the Negotiable Instruments Act, 1881 (26 of 1881), neither the provisions of this Act or of any rule, direction or order made thereunder, nor any condition, whether express or to be implied having regard to those provisions, that any payment shall not be made without permission under this Act, shall be deemed to prevent any instrument being a bill of exchange or promissory note.

No person shall, when complying with any order or direction under Section 19 110[or with any requirement under 111[Section 19-H] or when making any application or declaration to any authority or person for any purpose under this Act, give information or make any statement which he knows or has reasonable cause to believe to be false, or not true, in any material particular.

112[(1) 113[If any person contravenes the provisions of Section 4, Section 5, Section 9, Section 10, sub-section (2) of Section 12, Section 17, Section 18-A or Section 18-B] or of any rule, direction or order made thereunder, he shall

(a) be liable to such penalty not exceeding three times the value of the foreign exchange in respect of which the contravention has taken place, or five thousand rupees, whichever is more, as may be adjudged by the Director of Enforcement in the manner hereinafter provided, or

(b) upon conviction by a Court, be punishable with imprisonment for a term which may extend to two years, or with fine, or with both.

114[(1-A) If any person contravenes any of the provisions of this Act or of any rule, direction or order made thereunder, for the contravention of which no penalty is expressly provided, he shall, upon conviction by a court, be punishable with imprisonment for a term which may extend to two years, or with fine, or with both.]

(1-B) Any Court trying a contravention under sub-section (1) or sub-section (1-A) and the authority adjudging any contravention under clause (a) of sub-section (1) may, if it thinks fit, and in addition to any sentence or penalty which it may impose for such contravention, direct that any currency, security, gold or silver, or goods or any other money or property, in respect of which the contravention has taken place, shall be confiscated to the Central Government and further direct that the foreign exchange holdings, if any, of the person committing the contravention or any part thereof shall be brought back into India or shall be retained outside India in accordance with the directions made in this behalf.

Explanation. For the purposes of this sub-section, property in respect of which contravention has taken place shall include deposits in a bank, where the said property is converted into such deposits.]

115[(2) Notwithstanding anything contained in Section 32 of the Code of Criminal Procedure, 1898 (5 of 1898), it shall be lawful for any Magistrate of the first class, specially empowered in this behalf by the State Government, and for any Presidency Magistrate to pass a sentence of fine exceeding 116[two thousand] rupees on any person convicted of an offence punishable under this section.]

117[(3) No Court shall take cognizance

(a) of any offence punishable under sub-section (1) except upon complaint in writing made by the Director of Enforcement, or

118[(aa) of any offence punishable under sub-section (2) of Section 191,

(i) where the offence is alleged to have been committed by an officer of Enforcement not lower in rank than an Assistant Director of Enforcement, except with the previous sanction of the Central Government;

(ii) where the offence is alleged to have been committed by an officer of Enforcement lower in rank than an Assistant Director of Enforcement, except with the previous sanction of the Director of Enforcement, or]

(b) of any offence punishable under sub-section (1-A) of this section 119[or Section 23-F] except upon complaint in writing made by the Director of Enforcement or any officer authorised in this behalf by the Central Government or the Reserve Bank by a general or special order:

Provided that where any such offence is the contravention of any of the provisions of this Act or any rule, direction or order made thereunder which prohibits the doing of an act without permission, no such complaint shall be made unless the person accused of the offence has been given an opportunity of showing that he had such permission.

(4) Nothing in the first proviso to Section 188 of the Code of Criminal Procedure, 1898 (5 of 1898), shall apply to any offence punishable under this section.]

120[23-A. Application of Sea Customs Act, 1878. Without prejudice to the provisions of Section 23 or to any other provision contained in this Act, the restrictions imposed by 121[or under] sub-sections (1) and (2) of Section 8, sub-section (1) of Section 12 and clause (a) of sub-section (1) of Section 13 shall be deemed to have been imposed 122[under Section 11 of the Customs Act, 1962 (52 of 1962), and all the provisions of that Act shall have effect accordingly.]

23-B. Attempts. Whoever attempts to contravene any of the provisions of this Act or of any rule, direction or order made thereunder shall be deemed to have contravened that provision, rule, direction or order, as the case may be.]

123[23-C. Offences by companies. (1) If the person committing a contravention is a company, every person who, at the time the contravention was committed, was in-charge of, and was responsible to, the company for the conduct of the business of the company as well as the Company, shall be deemed to be guilty of the contravention and shall be liable to be proceeded against and punished accordingly:

Provided that nothing contained in this sub-section shall render any such person liable to punishment if he proves that the contravention took place without his knowledge or that he exercised all due diligence to prevent such contravention.

(2) Notwithstanding anything contained in sub-section (1), where a contravention under this Act has been committed by a company and it is proved that the contravention has taken place with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

Explanation. For the purposes of this section,

(a) company means any body corporate and includes a firm or other association of individuals; and

(b) director , in relation to a firm, means a partner in the firm.]

124[23-D. Power to adjudicate. (1) For the purpose of adjudging under clause (a) of sub-section (1) of Section 23 whether any person has committed a contravention, the Director of Enforcement shall hold an inquiry in the prescribed manner after giving that person a reasonable opportunity of being heard and if, on such inquiry, he is satisfied that the person has committed the contravention, he may impose such penalty as he thinks fit in accordance with the provisions of the said Section 23:

Provided that if, at any stage of the inquiry, the Director of Enforcement is of opinion that having regard to the circumstances of the case, the penalty which he is empowered to impose would not be adequate, he shall, instead of imposing any penalty himself, make a complaint in writing to the Court.

(2) While holding an inquiry under this section, the Director of Enforcement shall have power to summon and enforce the attendance of any person to give evidence or to produce a document or any other thing which, in the opinion of the Director of Enforcement, may be useful for, or relevant to, the subject-matter of the inquiry.

(3) Any sum paid by way of penalty or any currency, security, gold or silver or goods or money or any other property confiscated under Section 23 shall vest in the Central Government.]

125[23-E. Appeals. (1) The Central Government may, by notification in the Official Gazette, constitute an Appellate Board to be called the Foreign Exchange Regulation Appellate Board consisting of a Chairman 126[two other members] to be appointed by the Central Government for hearing appeals against the orders of the Director of Enforcement made under Section 23.

127[(2) Any person aggrieved by such order may, after depositing the sum imposed by way of penalty under Section 23 and within forty-five days from the date on which the order is sent to the person committing the contravention, prefer an appeal to the Appellate Board;

Provided that the Appellate Board may entertain the appeal

(a) after the expiry of the said period of forty-five days, if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal in time;

(b) without the deposit being made, if it is satisfied that there is sufficient reason to do so, subject to the condition that the deposit shall be made within such time before the date of the hearing of the appeal as it may allow and that the appeal shall stand dismissed, if the deposit is not so made.]

(3) On receipt of an appeal under sub-section (2), the Appellate Board may, after calling for a report from the Director of Enforcement and after making such further inquiry as it thinks fit, confirm, modify or set aside the order appealed against, and the decision of the Appellate Board 128[shall, subject to the provisions of Section 23-EE, be final] and if the sum deposited by way of penalty under sub-section (2) exceeds the amount directed to be paid by the Appellate Board, the excess amount shall be refunded.

(4) The Appellate Board may call for the records of any proceeding in which the Director of Enforcement has made an order under clause (a) of sub-section (1) of Section 23 and make such order in the case as it thinks fit.

(5) No order of the Director of Enforcement made under Section 23 shall be varied by the Appellate Board so as to prejudicially effect any person without giving him reasonable opportunity of being heard; and subject thereto, the Appellate Board shall follow such procedure in respect of the proceedings before it as may be prescribed.]

129[(6) The powers and functions of the Appellate Board may be exercised and discharged by Benches consisting of two members and constituted by the Chairman of the Appellate Board:

Provided that if the members of the Bench differ on any point or points, they shall state the point or points on which they differ and refer the same to the third member for hearing on such point or points and such point or points shall be decided according to the opinion of that member.]

130[23-EE. Appeal to the High Court. An appeal shall lie to the High Court only on questions of law from any decision or order of the Appellate Board under sub-section (3) or sub-section (4) of Section 23-E.]

131[23-EEE. Correction of clerical errors, etc. Clerical or arithmetical mistakes in any decision or order passed by the Appellate Board or the Director of Enforcement under this Act, or errors arising therein from any accidental slip or omission may, at any time, be corrected by the Appellate Board or the Director of Enforcement or his successor in office, as the case may be.]

132[23-F. Penalty for contravention of order made by Director of Enforcement and Appellate Board. If any person fails to pay the penalty imposed by the Director of Enforcement or the Appellate Board 133[or the High Court], or fails to comply with any of their directions or orders, he shall, on conviction before a Court, be punishable with imprisonment for a term which may extend to two years, or with fine, or with both.]

134[(1)] Where any person is prosecuted 135[or proceeded against] for contravening any provision of this Act or of any rule, direction or order made thereunder which prohibits him from doing an act without permission, the burden of proving that he had the requisite permission shall be on him.

136[(2) Where any person is prosecuted 137[or proceeded against] for contravening the provisions of sub-section (3) of Section 4, the burden of proving that the foreign exchange acquired by such person has been used for the purpose for which permission to acquire it was granted shall be on him.]

138[24-A. Presumption as to documents in certain cases. Where any document 139[furnished by any person under sub-section (2) of Section 19, Section 19-E or Section 19-F, or has been seized under Section 19-A or Section 19-C or Section 19-D from the custody or control of any person,] and such document is tendered by the prosecution in evidence against him, the Court 140[or the officer adjudicating under clause (a) of sub-section (1) of Section 23] shall, unless the contrary is proved by any such person, presume

(a) the truth of the contents of such document;

(b) that the signature and every other part of such document which purports to be in the handwriting of any particular person of which the court 141[or the officer adjudicating under clause (a) of sub-section (1) of Section 23] may reasonably assume to have been signed by, or to be in the handwriting of, any particular person, is in that person's handwriting, and in the case of a document stamped, executed or attested, that it was duly stamped and executed or attested by the person by whom it purports to have been so executed or attested.]

For the purposes of this Act the Central Government from time to time give to the Reserve Bank such general or special directions as it thinks fit, and the Reserve Bank shall, in the exercise of its functions under this Act, comply with any such directions.

142[25-A. Certain officers to assist officers of Enforcement. The following officers are hereby empowered and required to assist officers of Enforcement in the enforcement of this Act, namely:

(a) officers of the Customs Department;

(b) officers of the Central Excise Department;

(c) officers of Police;

(d) officers of the Central or State Government employed at any port or airport;

(e) such other officers of the Central or State Government or a local authority as are specified by the Central Government in this behalf by notification in the Official Gazette.]

No suit, prosecution or other legal proceedings shall lie against any person for anything in good faith done or intended to be done under this Act or any rule, direction or order made thereunder.

(1) The Central Government may, by notification in the Official Gazette, make rules143 for carrying into effect the provisions of this Act.

(2) Without prejudice to the generality of the foregoing power, such rules may

(a) prescribe forms and the circumstances of their use for the purposes of this Act;

(b) prescribe the procedure to be followed by authorised dealers and by persons applying for permission to do anything for the doing of which permission is necessary under this Act;

144[(bb) prescribe the manner in which inquires may be held under this Act and the procedure to be followed in respect of the proceedings before the Director of Enforcement or the Appellate Board;]

145[(c) provide, subject to such conditions as may be prescribed, for the publication of the names and other particulars of persons who have been found guilty of any contravention of the provisions of this Act, or of any rule, order or direction made thereunder;]

146[(d)] provide for any matter which is to be or may be prescribed under this Act.

147[(3) Every rule made under this Act shall be laid as soon as may be after it is made before each House of parliament while it is in session for a total period of thirty days which may be comprised in one session or in two successive sessions, and if before the expiry of the session in which it is so laid or the session immediately following, both Houses agree in making any modification in the rule, or both Houses agree that the rule should not be made, the rule shall, thereafter, have effect only in such modified form or be of no efect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.]

1. Substituted by the A.O. 1950 for the former sub-section (2).

2. The words except the State of Jammu and Kashmir omitted by Act 62 of 1956, Section 2 and Schedule (w.e.f. 1-11-1956).

3. Inserted by Act 55 of 1964, Section 2 (w.e.f. 1-4-1965).

4. 25-3-1947, see Gazette of India, 1947, Part I, p. 382.

5. Sub-section (4) omitted by Act 39 of 1957, Section 2.

6. Substituted for clause (a) by Act 39 of 1957, Section 3.

7. Inserted by Act 39 of 1957, Section 3.

8. Inserted by Act 39 of 1957, Section 3.

9. Substituted for issued by Act 39 of 1957, Section 3.

10. Inserted by Act 39 of 1957, Section 3.

11. Inserted by Act 55 of 1964, Section 3 (w.e.f. 1-4-1965).

12. Inserted by Act 55 of 1964, Section 3 (w.e.f. 1-4-1965).

13. Substituted by Act 34 of 1950, Section 3, for Indian Securities Act, 1920 .

14. Inserted by Act 55 of 1964, Section 3 (w.e.f. 1-4-1965).

15. Inserted by Act 39 of 1957, Section 3.

16. Substituted for means by Act 39 of 1957, Section 3.

17. Inserted by Act 39 of 1957, Section 3.

18. Clause (m) omitted by Act 62 of 1956, Section 2 and Schedule (w.e.f. 1-11-1956).

19. Clause (n) relettered as clause (m) by Act 62 of 1956, Section 2 and Schedule (w.e.f. 1-11-1956).

20. Clause (o) inserted by Act 34 of 1950, was repealed by Act 8 of 1952, Section 3.

21. Inserted by Act 55 of 1964, Section 4 (w.e.f. 1-4-1965).

22. Inserted by Act 55 of 1964, Section 4 (w.e.f. 1-4-1965).

23. Inserted by Act 39 of 1957, Section 4.

24. For certain exceptions, see Gazette of India, 1947, Extraordinary, p. 625.

25. Substituted for the words the States by Act 62 of 1956, Section 2 and Schedule (w.e.f. 1-11-1956).

26. Substituted for the words the States by Act 62 of 1956, Section 2 and Schedule (w.e.f. 1-11-1956).

27. Substituted for the words the States by Act 62 of 1956, Section 2 and Schedule (w.e.f. 1-11-1956).

28. Substituted by Act 55 of 1964, Section 5 (w.e.f. 1-4-1965).

29. Substituted by Act 55 of 1964, Section 5 (w.e.f. 1-4-1965).

30. For certain exemptions, see Gazette of India, 1947, Extraordinary, p. 626.

31. Substituted for the words the States by Act 62 of 1956, Section 2 and Schedule (w.e.f. 1-11-1956).

32. Inserted by Act 55 of 1964, Section 6 (w.e.f. 1-4-1965).

33. Substituted for the words the States by Act 62 of 1956, Section 2 and Schedule (w.e.f. 1-11-1956).

34. Substituted for the words the States by Act 62 of 1956, Section 2 and Schedule (w.e.f. 1-11-1956).

35. Substituted for the words the States by Act 62 of 1956, Section 2 and Schedule (w.e.f. 1-11-1956).

36. Substituted for the words the States by Act 62 of 1956, Section 2 and Schedule (w.e.f. 1-11-1956).

37. Inserted by Act 40 of 1947, Section 2 (with retrospective effect).

38. Substituted for the words the States by Act 62 of 1956, Section 2 and Schedule (w.e.f. 1-11-1956).

39. Substituted for the words the States by Act 62 of 1956, Section 2 and Schedule (w.e.f. 1-11-1956).

40. Substituted for the words the States by Act 62 of 1956, Section 2 and Schedule (w.e.f. 1-11-1956).

41. Substituted for the words the States by Act 62 of 1956, Section 2 and Schedule (w.e.f. 1-11-1956).

42. Inserted by Act 55 of 1964, Section 7 (w.e.f. 1-4-1965).

43. Substituted by Act 39 of 1957, Section 5.

44. Substituted by Act 55 of 1964, Section 7 (w.e.f. 1-4-1965).

45. Sub-section (3) was repealed by Act 8 of 1952, Section 4.

46. Substituted for the States by Act 62 of 1956, Section 2 and Schedule (w.e.f. 1-11-1956).

47. Inserted by Act 39 of 1957, Section 6.

48. Substituted by Act 55 of 1964, Section 8 (w.e.f. 1-4-1965).

49. Substituted for the States by Act 62 of 1956, Section 2 and Schedule (w.e.f. 1-11-1956).

50. Substituted by Act 40 of 1969, Section 2.

51. Substituted by Act 55 of 1964, Section 9 (w.e.f. 1-4-1965).

52. Substituted by Act 39 of 1957, Section 7.

53. Substituted for the States by Act 62 of 1956, Section 2 and Schedule (w.e.f. 1-11-1956).

54. Substituted for the States by Act 62 of 1956, Section 2 and Schedule (w.e.f. 1-11-1956).

55. Substituted for the States by Act 62 of 1956, Section 2 and Schedule (w.e.f. 1-11-1956).

56. Inserted by Act 39 of 1957, Section 7.

57. Inserted by Act 55 of 1964, Section 10 (w.e.f. 1-4-1965).

58. Inserted by Act 55 of 1964, Section 10 (w.e.f. 1-4-1965).

59. Inserted by Act 39 of 1957, Section 7.

60. Substituted by Act 53 of 1958, Section 2.

61. Substituted for document by Act 39 of 1957, Section 9.

62. Substituted for the States by Act 62 of 1956, Section 2 and Schedule (w.e.f. 1-11-1956).

63. Substituted for document by Act 39 of 1957, Section 9.

64. Substituted for document by Act 39 of 1957, Section 9.

65. Substituted for document by Act 39 of 1957, Section 9.

66. Substituted for the States by Act 62 of 1956, Section 2 and Schedule (w.e.f. 1-11-1956).

67. Substituted for documents by Act 39 of 1957, Section 9.

68. Substituted by Act 39 of 1957, Section 10.

69. Substituted for documents by Act 39 of 1957, Section 11.

70. Substituted by Act 55 of 1964, Section 11 (w.e.f. 1-4-1965).

71. The words , other than by will, omitted by Act 55 of 1964, Section 11 (w.e.f. 1-4-1964).

72. Substituted by Act 55 of 1964, Section 11 (w.e.f. 1-4-1965).

73. Substituted by Act 8 of 1952, Section 6, for the original Section 18.

74. Substituted for the States by Act 62 of 1956, Section 2 and Schedule (w.e.f. 1-11-1956).

75. Substituted for a company by Act 39 of 1957, Section 13.

76. Inserted by Act 39 of 1957, Section 13.

77. Inserted by Act 55 of 1964, Section 12 (w.e.f. 1-4-1965).

78. Substituted for the States by Act 62 of 1956, Section 2 and Schedule (w.e.f. 1-11-1956).

79. Substituted for a company by Act 39 of 1957, Section 13.

80. Substituted for any such person by Act 39 of 1957, Section 13.

81. Substituted for the States by Act 62 of 1956, Section 2 and Schedule (w.e.f. 1-11-1956).

82. Substituted for the States by Act 62 of 1956, Section 2 and Schedule (w.e.f. 1-11-1956).

83. Substituted for the States by Act 62 of 1956, Section 2 and Schedule (w.e.f. 1-11-1956).

84. Substituted for the States by Act 62 of 1956, Section 2 and Schedule (w.e.f. 1-11-1956).

85. Substituted for the States by Act 62 of 1956, Section 2 and Schedule (w.e.f. 1-11-1956).

86. Substituted for the States by Act 62 of 1956, Section 2 and Schedule (w.e.f. 1-11-1956).

87. Substituted for the States by Act 62 of 1956, Section 2 and Schedule (w.e.f. 1-11-1956).

88. Inserted by Act 55 of 1964, Section 13 (w.e.f. 1-4-1965).

89. Inserted by Act 55 of 1964, Section 13 (w.e.f. 1-4-1965).

90. Substituted by Act 8 of 1952, Section 7, for sub-sections (2) and (3).

91. Sub-sections (3) and (4) omitted by Act 55 of 1964, Section 14 (w.e.f. 1-4-1965).

92. Sub-sections (3) and (4) omitted by Act 55 of 1964, Section 14 (w.e.f. 1-4-1965).

93. Inserted by Act 55 of 1964, Section 15 (w.e.f. 1-4-1965).

94. Inserted by Act 55 of 1964, Section 15 (w.e.f. 1-4-1965).

95. Inserted by Act 55 of 1964, Section 15 (w.e.f. 1-4-1965).

96. Inserted by Act 55 of 1964, Section 15 (w.e.f. 1-4-1965).

97. Inserted by Act 55 of 1964, Section 15 (w.e.f. 1-4-1965).

98. Inserted by Act 55 of 1964, Section 15 (w.e.f. 1-4-1965).

99. Section 19-A renumbered as Section 19-G by Act 55 of 1964, Section 15 (w.e.f. 1-4-1965).

100. Substituted by Act 55 of 1964, Section 15 (w.e.f. 1-4-1965).

101. Substituted by Act 55 of 1964, Section 15 (w.e.f. 1-4-1965).

102. Inserted by Act 43 of 1970, Section 2.

103. Section 19-B renumbered as Section 19-H by Act 55 of 1964, Section 15 (w.e.f. 1-4-1964).

104. Inserted by Act 55 of 1964, Section 15 (w.e.f. 1-4-1965).

105. Inserted by Act 55 of 1964, Section 15 (w.e.f. 1-4-1965).

106. Substituted for the States by Act 62 of 1956, Section 2 and Schedule (w.e.f. 1-11-1956).

107. Substituted for the States by Act 62 of 1956, Section 2 and Schedule (w.e.f. 1-11-1956).

108. Substituted for the States by Act 62 of 1956, Section 2 and Schedule (w.e.f. 1-11-1956).

109. Substituted for the States by Act 62 of 1956, Section 2 and Schedule (w.e.f. 1-11-1956).

110. Inserted by Act 39 of 1957, Section 15.

111. Substituted for Section 19-B by Act 55 of 1964, Section 16 (w.e.f. 1-4-1965).

112. Substituted by Act 39 of 1957, Section 16.

113. Substituted by Act 55 of 1964, Section 17 (w.e.f. 1-4-1965).

114. Substituted by Act 55 of 1964, Section 17 (w.e.f. 1-4-1965).

115. Inserted by Act 34 of 1950, Section 5.

116. Substituted for one thousand by Act 39 of 1957, Section 16.

117. Substituted by Act 39 of 1957, Section 16.

118. Inserted by Act 55 of 1964, Section 17 (w.e.f. 1-4-1965).

119. Substituted by Act 55 of 1964, Section 17 (w.e.f. 1-4-1965).

120. Inserted by Act 8 of 1952, Section 9.

121. Inserted by Act 40 of 1969, Section 3.

122. Substituted by Act 55 of 1964, Section 18 (w.e.f. 1-4-1965).

123. Inserted by Act 39 of 1957, Section 17.

124. Inserted by Act 39 of 1957, Section 17.

125. Inserted by Act 39 of 1957, Section 17.

126. Substituted for another member by Act 55 of 1964, Section 19 (w.e.f. 1-4-1965).

127. Substituted by Act 55 of 1964, Section 19 (w.e.f. 1-4-1965).

128. Substituted for shall be final by Act 55 of 1964, Section 19 (w.e.f. 1-4-1965).

129. Inserted by Act 55 of 1964, Section 19 (w.e.f. 1-4-1965).

130. Inserted by Act 55 of 1964, Section 20 (w.e.f. 1-4-1965).

131. Inserted by Act 55 of 1964, Section 20 (w.e.f. 1-4-1965).

132. Inserted by Act 39 of 1957, Section 17.

133. Inserted by Act 55 of 1964, Section 21 (w.e.f. 1-4-1965).

134. Renumbered as sub-section (1) of Section 24 by Act 8 of 1952, Section 10.

135. Inserted by Act 39 of 1957, Section 18.

136. Inserted by Act 8 of 1952, Section 10.

137. Inserted by Act 39 of 1957, Section 18.

138. Inserted by Act 8 of 1952, Section 11.

139. Substituted by Act 55 of 1964, Section 22 (w.e.f. 1-4-1965).

140. Inserted by Act 55 of 1964, Section 22 (w.e.f. 1-4-1965).

141. Inserted by Act 55 of 1964, Section 22 (w.e.f. 1-4-1965).

142. Inserted by Act 55 of 1964, Section 23 (w.e.f. 1-4-1965).

143. For the Foreign Exchange Regulation Rules, 1952, see Gazette of India, 1952, Part II, Section 3, p. 710.

144. Inserted by Act 39 of 1957, Section 19.

145. Inserted by Act 55 of 1964, Section 24 (w.e.f. 1-4-1965).

146. Clause (c) relettered as clause (d) by Act 55 of 1964, Section 24 (w.e.f. 1-4-1965).

147. Substituted by Act 55 of 1964, Section 24 (w.e.f. 1-4-1965).