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ARTICLE · 14 OCTOBER 2019

Penalty Rationalization Under FEMA

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The recent ruling of the Appellate Tribunal for Foreign Exchange, New Delhi (Appellate Tribunal) in the matter of Jaipur IPL Cricket Private Limited and Ors. v. The Special Director Directorate ...

IndiaCorporate/Commercial Law
Nandita Bose
Nandita Bose
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The recent ruling of the Appellate Tribunal for Foreign Exchange, New Delhi (Appellate Tribunal) in the matter of Jaipur IPL Cricket Private Limited and Ors. v. The Special Director Directorate of Enforcement, Bangalore, provides an interesting analysis of recognized principles of law vis-à-vis liabilities of officers in default and imposition of penalties under the Foreign Exchange Management Act, 1999 (FEMA).

The dispute in this case involved imposition of penalties under FEMA on Jaipur IPL Cricket Private Limited (JIPL), EM Sporting Holdings Ltd. (EMSH), M/s ND Investments LLP and certain individuals including Suresh Chellaram and Manoj Badale by the Special Director, Enforcement Directorate, Mumbai. The matter concerned 3 overseas remittances (approximately INR 33 crores) made into India for the purpose of setting up and functioning of the Indian Premier League (IPL) team – Rajasthan Royals.

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