FOREIGN EXCHANGE MANAGEMENT ADJUDICATION PROCEEDINGS AND APPEAL RULES, 2000

R.1 Short title and commencement

       (1) These rules may be called the Foreign Exchange Management (Adjudication Proceedings and Appeal) Rules, 2000.
       (2) They shall come into force on the 1st day of June, 2000.

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        1. Vide G.S.R. 382 (E), dated 3rd May, 2000, published in the Gazette of India, Extra., Pt. II, Sec. 3 (i), dated 4th May, 2000.

R.2 Definitions

       In these rules, unless the context otherwise requires,—
        (a) “Act” means the Foreign Exchange Management Act, 1999 (42 of 1999);
        (b) “Adjudicating Authority” means an officer appointed by the Central Government under sub-section (1) of section 16 of the Act;
        (c) “applicant“ means an aggrieved person who makes an appeal before Special Director (Appeals) or Appellate Tribunal, as the case may be;
        (d) “Appellate Tribunal” means the Appellate Tribunal for Foreign Exchange established under section 18 of the Act;
        (e) “Form” means form appended to these rules;
        (f) “section” means a section of the Act;
&nb

R.3 Appointment of Adjudicating Authority

The Central Government may, by an order published in the Official Gazette, appoint as many officers of the Central Government as it may think fit, as the Adjudicating Authorities for holding inquiry under the provisions of Chapter IV of the Act.

R.4 Holding of inquiry

       (1) For the purpose of adjudicating under section 13 of the Act whether any person has committed any contravention as specified in that section of the Act, the Adjudicating Authority shall, issue a notice to such person requiring him to show cause within such period as may be specified in the notice (being not less than ten days from the date of service thereof) why an inquiry should not be held against him.
       (2) Every notice under sub-rule (1) to any such person shall indicate the nature of contravention alleged to have been committed by him.
       (3) After considering the cause, if any, shown by such person, the Adjudicating Authority is of the opinion that an inquiry should be held, he shall issue a notice fixing a date for the appearance of that person either personally or through his legal practitioner or a chartered accountant duly autho

R.5 Form of Appeal

       (1) Every appeal presented to the Special Director (Appeals) under section 17 of the Act shall be in the Form I signed by the applicant. The appeal shall be filed in triplicate and accompanied by three copies of the order appealed against. Every appeal shall be accompanied by a fee of Rupees five thousand in the form of cash or demand draft payable in favour of the Special Director (Appeals).
       (2) The appeal shall set forth concisely and under distinct heads the grounds of objection to the order appealed against with any argument of narrative and such grounds shall be numbered consecutively; and shall specify the address for service at which notice or other processes may be served on the applicant, the date on which the order appealed against was served on the applicant.
       (3) Where the appeal is presented after the expiry of the period of

R.6 Procedure before Special Director (Appeals)

       (1) On receipt of an appeal under rule 5, the Special Director (Appeals) shall send a copy of the appeal, together with a copy of the order appealed against, to the Director of Enforcement.
       (2) The Special Director (Appeals) shall, then, issue notices to the applicant and the Director of Enforcement fixing a date for hearing of the appeal.
       (3) On the date fixed for hearing of the appeal or any other day to which the hearing of the appeal may be adjourned, the applicant as well as the presenting officer of the Directorate of Enforcement shall be heard.
       (4) Where on the date fixed, or any other day to which the hearing of the appeal may be adjourned, the applicant or the presenting officer fail to appeal when the appeal is called for hearing, the Special Director (Appeals) may decide the appeal

R.7 Contents of the Order in appeal

.—(1) The order of Special Director (Appeals) shall be in writing and shall state briefly the grounds for the decision.
(2) The order referred to in sub-rule (1) shall be signed by the Special Director (Appeals) hearing the appeal.

R.8 Representation of party

Any applicant who has filed an appeal before the Special Director (Appeals) under section 17 of the Act, may appoint a legal practitioner or a charterted accountant to appear and plead and act on his behalf before the Special Director (Appeals) under the Act.

R.9 Service of notices, requisitions or orders

       A notice, requisition or an order issued under these rules shall be served on any person in the following manner, that is to say,—
        (a) by delivering or tendering the notice or requisition or order to that person or his duly authorised person;
        (b) by sending the notice or requisition or order to him by registered post with acknowledgment due to the address of his place of residence or his last known place or residence or the place where he carried on, or last carried on, business or personally works or last worked for gain; or
        (c) by affixing it on the outer door or some other conspicuous part of the premises in which the person resides or is known to have last resided or carried on business or personally works or last worked for gain and that written report thereo

R.10 Form of appeal

       (1) Every appeal presented to the Appellate Tribunal under section 19 of the Act shall be in the Form II signed by the applicant. The appeal shall be sent in triplicate and accompanied by three copies of the order appealed against. Every appeal shall be accompanied by a fee of Rupees ten thousand in the form of cash or demand draft payable in favour of the Registrar, Appellate Tribunal for Foreign Exchange, New Delhi:
       Provided that the applicant shall deposit the amount of penalty imposed by the Adjudicating Authority or the Special Director (Appeals) as the case may be, to such authority as may be notified under the first proviso to section 19 of the Act:
       Provided further that where in a particular case, the Appellate Tribunal is of the opinion that the deposit of such penalty would cause undue hardship to such person, the Appellate Tri

R.11 Procedure before Appellate Tribunal

       (1) On receipt of an appeal under rule 10, the Appellate Tribunal shall send a copy of the appeal, together with a copy of the order appealed against, to the Director of Enforcement.
       (2) The Appellate Tribunal shall, then, issue notices to the applicant and the Director of Enforcement fixing a date for hearing of the appeal.
       (3) On the date fixed for hearing of the appeal, or any other day to which the hearing of the appeal may be adjourned, the applicant as well as the presenting officer of the Directorate of Enforcement shall be heard.
       (4) Where on the date fixed, or any other day to which the hearing of the appeal may be adjourned, the applicant or the presenting officer fail to appear when the appeal is called on for hearing, the Appellate Tribunal may decide the appeal on the merits of th

R.12 Contents of the Order in appeal

.—(1) The order of Appellate Tribunal shall be in writing and shall state briefly the grounds for the decisions.
(2) The order referred to in sub-rule (1) shall be signed by the Chairman or Member or the Appellate Tribunal hearing the appeal.

R.13 Representation of Party

Any applicant who has filed an appeal before the Appellate Tribunal under section 19 of the Act may appoint a legal practitioner or a charterted accountant to appear and plead and act on his behalf before the Special Director (Appeal) under the Act.

R.14 Service of notices, requisitions or orders