Penalties
Section 13 of the Foreign Exchange Management Act, 1999 deals with penalties. If any person contravenes any provision of this Act, or contravenes any rule, regulation, notification, direction or order issued in exercise of the powers under this Act, or contravenes any condition subject to which an authorisation is issued by the Reserve Bank, he shall, upon adjudication, be li The Act came into force on 01 Jun 2000.
(1) If any person contravenes any provision of this Act, or contravenes any rule, regulation, notification, direction or order issued in exercise of the powers under this Act, or contravenes any condition subject to which an authorisation is issued by the Reserve Bank, he shall, upon adjudication, be liable to a penalty up to thrice the sum involved in such contravention where such amount is quantifiable, or up to two lakh rupees where the amount is not quantifiable, and where such contravention is a continuing one, further penalty which may extend to five thousand rupees for every day after the first day during which the contravention continues.
1[(1A) If any person is found to have acquired any foreign exchange, foreign security or immovable property, situated outside India, of the aggregate value exceeding the threshold prescribed under the proviso to sub-section (1) of section 37A, he shall be liable to a penalty up to three times the sum involved in such contravention and confiscation of the value equivalent, situated in India, the Foreign exchange, foreign security or immovable property.
(1B) If the Adjudicating Authority, in a proceeding under sub-section (1A) deems fits, he may, after recording the reasons in writing, recommend for the initiation of prosecution and if the Director of Enforcement is satisfied, he may, after recording the reasons in writing, may direct prosecution by filing a Criminal Complaint against the guilty person by an officer not below the rank of Assistant Director.
(1C) If any person is found to have acquired any foreign exchange, foreign security or immovable property, situated outside India, of the aggregate value exceeding the threshold prescribed under the proviso to sub-section (1) of section 37A, he shall be, in addition to the penalty imposed under sub-section (1A), punishable with imprisonment for a term which may extend to five years and with fine.
(1D) No court shall take cognizance of an offence under sub-section (1C) of section 13 except as on complaint in writing by an officer not below the rank of Assistant Director referred to in sub-section (1B).]
(2) Any Adjudicating Authority adjudging any contravention under sub-section (1), may, if he thinks fit in addition to any penalty which he may impose for such contravention direct that any currency, security 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 persons committing the contraventions 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--
(a) deposits in a bank, where the said property is converted into such deposits;
(b) Indian currency, where the said property is converted into that currency; and
(c) any other property which has resulted out of the conversion of that property.
Section 13, The Foreign Exchange Management Act, 1999 (Act 42 of 1999).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Monotosh Saha v. Special Director, Enforcement Directorate
Court's Decision & Legal Precedent
Final Order order-3.pdf body Judgment on 31.08.2023 (Debangsu Basak & Md. Shabbar Rashidi JJ.); index Final Order 2023-08-31. FEMA adjudication relying on natural persons’ statements (Customs s.108) must allow cross-examination; denial vitiates penalty adjudication under FEMA s.13 framework. Remands to evidence stage.
On this section: s.13 penalties — FEMA adjudication relying on natural persons’ statements must allow cross-examination; denial vitiates penalty proceedings.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Made under this section, and citing it
1 instrument names this provision in its title or its text without being made under it.
Questions about Section 13
What have the courts held on Section 13 of the Foreign Exchange Management Act?
Monotosh Saha v. Special Director, Enforcement Directorate (31 Aug 2023) is the leading judgment on this section among those set out below: s.13 penalties — FEMA adjudication relying on natural persons’ statements must allow cross-examination; denial vitiates penalty proceedings.
How do I find court cases under Section 13 of the Foreign Exchange Management Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Fema 13, section 13 Fema, section 13 of the Foreign Exchange Management Act. People searching for it also type section 13 of foreign exchange management act and section 13 1 of the foreign exchange management act 1999. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Monotosh Saha v. Special Director, Enforcement Directorate (31 Aug 2023).
What should I read with Section 13 of the Foreign Exchange Management Act, and has it changed?
Its own text turns on section 37A (Special provisions relating to assets held outside India in contravention of section 4), so none of them can safely be read on its own. 6 other provisions in this corpus refer back to it. One instrument names it without being made under it, most recently the Foreign Exchange (Compounding Proceedings) Rules 2000 (2000).
When did Section 13 of the Foreign Exchange Management Act come into force?
Section 13 of the Foreign Exchange Management Act, cited as Fema 13, came into force on 01 Jun 2000, having been enacted on 29 Dec 1999. It is in force as at the date shown on this page.
Other sections of this Act
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 14 Oct 2026. This page is not a substitute for legal advice.