Foreign Exchange (Regulation) Act 2019

Section 11H: To Safely Foreign Exchange and Document Taken into Custody

Section 17: Punishment
1) If any person does any act in contravention of this Act or Rules framed thereunder or order or direction or circulation or Notification or any procedure as prescribed by the Bank, the foreign exchange related with the offence shall be forfeited and such a person shall be fined additionally from the amount in question to three fold of such amount in question.
Provided that, in relation to the offence where the foreign exchange related to such offence could not be forfeited, the amount in question for foreign exchange related to such offence shall be fixed and fined additionally from the amount in question to three times the amount in question.
2) In fixing the amount in question pursuant to sub-section (1), if the amount in question cannot be set out or caused to be set out, a fine of up to Two Hundred Thousand Rupees shall be imposed, as per the gravity of the offence.
3) If any employee deputed to perform any acts, make inspection and conduct investigation pursuant to this Act, does any act violating the Act by doing such act maliciously or divulges secrecy, such employee shall be liable to a fine of up to One Hundred Thousand Rupees in view of the gravity of the offence.
4) If the offence to be punishable by this Act is committed by any firm, company or body, the director, office-bearer, employee or agent taking responsibility for such a firm, company or body for the work related to such offence at the time of the commission of the offence shall be liable to punishment.
Provided that, if there was a situation that such a director, office-bearer, employee or agent could not be informed about the occurrence of such offence, or if they submit evidence that they did their best to prevent such offence, they shall not be liable to bear the punishment pursuant to this Sub-section.
5) Any importer who makes import without doing such acts or fulfilling such procedures as required to be done or fulfilled in relation to the import pursuant to Section 8 or by making over-invoicing or does not import goods within the fixed period or does not import such goods as required to be imported shall be punished with a fine ranging from the sum equal to the amount in question of the concerned import to additional fine that is Threefold of the amount in question.
6) Any exporter who commits an offence in violation of Sections 9A, 9 B, and 9C. shall be punished with a fine ranging from the sum equal to the amount in question of the export concerned to an additional fine that is twice the amount in question.
7) A person who is an accomplice to or aids in the commission of the offence as referred to in sub-sections (5) and (6) shall be liable to half the punishment set forth in the Sub-sections.
8) In the event of failure to pay the fine imposed pursuant to this Section, such a person shall be liable to the punishment of fine for a term not exceeding four years in view of the magnitude of the offence.
9) Notwithstanding anything contained elsewhere in this Section, if the amount in question involved in the offence relating to the foreign exchange is Ten million Rupees or more, the person concerned shall be liable to an additional punishment of imprisonment for a term not exceeding Three years, in addition to the punishment imposable on such a person.
10) In the case of a person arrested in the course of investigation, the investigating officer, and in the case of an accused in the course of trial of case, the concerned court may institute proceeding by releasing such a person or accused, as the case may be, on recognizance against a personal bail if the amount in question involved in the offence in question is up to One Hundred Thousand Rupees or on security or bail equal to the amount in question involved in the offence or equal to the amount in question determined according to the gravity of the offence if the amount in question involved in the offence is more than One Hundred Thousand Rupees.
11) If the chief or a member of any constitutional body or a person holding the office of political appointment does any act that is an offence under this Act, such a chief or member or person shall be liable for punishment that is double the punishment imposable on any other person committing such an act.
Provided that, in the case of the punishment of imprisonment, the term of such punishment shall not exceed an additional two years.
12) Action shall be taken by holding in detention the person who does not furnish security/bail pursuant to sub-section (10).