Appointment of Adjudicating Authority
Section 16 of the Foreign Exchange Management Act, 1999 deals with appointment of Adjudicating Authority. For the purpose of adjudication under section 13, 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 an inquiry in the manner prescribed after giving the person The Act came into force on 01 Jun 2000.
(1) For the purpose of adjudication under section 13, 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 an inquiry in the manner prescribed after giving the person alleged to have committed contravention under section 13, against whom a complaint has been made under sub-section (3) (hereinafter in this section referred to as the said person) a reasonable opportunity of being heard for the purpose of imposing any penalty:
Provided that where the Adjudicating Authority is of opinion that the said person is likely to abscond or is likely to evade in any manner, the payment of penalty, if levied, it may direct the said person to furnish a bond or guarantee for such amount and subject to such conditions as it may deem fit.
(2) The Central Government shall, while appointing the Adjudicating Authorities under sub-section (1), also specify in the order published in the Official Gazette, their respective jurisdictions.
(3) No Adjudicating Authority shall hold an enquiry under sub-section (1) except upon a complaint in writing made by any officer authorised by a general or special order by the Central Government.
(4) The said person may appear either in person or take the assistance of a legal practitioner or a chartered accountant of his choice for presenting his case before the Adjudicating Authority.
(5) Every Adjudicating Authority shall have the same powers of a civil court which are conferred on the Appellate Tribunal under sub-section (2) of section 28 and--
(a) all proceedings before it shall be deemed to be judicial proceedings within the meaning of sections 193 and 228 of the Indian Penal Code (45 of 1860);
(b) shall be deemed to be a civil court for the purposes of sections 345 and 346 of the Code of Criminal Procedure, 1973 (2 of 1974).
(6) Every Adjudicating Authority shall deal with the complaint under sub-section (2) as expeditiously as possible and endeavour shall be made to dispose of the complaint finally within one year from the date of receipt of the complaint:
Provided that where the complaint cannot be disposed of within the said period, the Adjudicating Authority shall record periodically the reasons in writing for not disposing of the complaint within the said period.
Section 16, 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
Referred to by 3
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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Kanwar Natwar Singh v. Directorate of Enforcement
Court's Decision & Legal Precedent
A noticee under Rule 4(1) of the FEMA Adjudication Rules is entitled to documents relied upon for the show-cause, but is not entitled as of right to demand every document in the Adjudicating Authority's possession including unused materials. Natural justice at the show-cause stage means adequate disclosure of relied-upon material; unreasonable blanket discovery demands that obstruct the inquiry under Section 16 may be refused. Appeals dismissed; Authority directed to complete inquiry expeditiously.
On this section: s.16 FEMA adjudication / Rule 4 show-cause — disclosure limited to relied-upon documents; no right to entire unused file
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Kanwar Jagat Singh v. Directorate of Enforcement
Court's Decision & Legal Precedent
Companion Civil Appeal 8602/2010 decided with Kanwar Natwar Singh: same reportable holding on FEMA adjudication document disclosure at show-cause stage under Rule 4 / Section 16 framework.
On this section: Companion CNR to Natwar Singh — same FEMA s.16 disclosure holding
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Lalit Kumar Modi v. Special Director, Directorate of Enforcement
Court's Decision & Legal Precedent
Where FEMA adjudication expressly relies on statements of witnesses recorded under investigation, denial of cross-examination of those witnesses violates natural justice and fair hearing implicit in adjudicatory process under Section 16. Adjudicating authorities are not bound by the Evidence Act but must allow testing of material relied on to establish contested facts.
On this section: s.16 FEMA adjudication opportunity includes cross-exam of relied-upon s.37 statement makers when facts contested
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Shahid Balwa v. Directorate of Enforcement
Court's Decision & Legal Precedent
Right to cross-examine in FEMA adjudication is not absolute; it depends on facts, statutory framework and prejudice. Principles of natural justice require fair opportunity but not cross-examination in every case. Writ courts should not interdict adjudication at an interim stage when written replies and opportunity have been afforded; the remedy is appeal after final order.
On this section: s.16 FEMA adjudication — reasonable opportunity / cross-examination claim rejected as non-absolute; writ not to stall inquiry
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Vinod Goenka v. Directorate of Enforcement
Court's Decision & Legal Precedent
Companion writ disposed with Shahid Balwa on the same day: FEMA adjudicating opportunity does not invariably include cross-examination; interim writ interference declined where written replies were permitted.
On this section: Companion CNR to Balwa — same FEMA s.16 fair-hearing / cross-exam holding
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.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… Exhibit P1 dated 4.9.2015 addressed to Directorate of Enforcement, Kozhikode, relief sought for has been opposed on the grounds inter alia that writ petitioner is not entitled for copy of the adjudication order as he was only an informer and he cannot be treated as complainant. 4. Reference has been made to Section 16(3) of Foreign Exchange Management Act, 1999 (for short 'FEMA'), which states that no adjudicating authority shall hold an enquiry under Subsection (1) except upon a complaint made by any officer authorised by a general or special order of the Central Government. 5. Further contention has also been made by the …
Made under this section, and citing it
2 instruments name this provision in its title or its text without being made under it.
Questions about Section 16
What have the courts held on Section 16 of the Foreign Exchange Management Act?
Kanwar Natwar Singh v. Directorate of Enforcement (05 Oct 2010) is the leading judgment on this section among those set out below: s.16 FEMA adjudication / Rule 4 show-cause — disclosure limited to relied-upon documents; no right to entire unused file. Another 4 judgments on this section are set out below, 2 of them from the Supreme Court. They run from 2010 to 2018.
How do I find court cases under Section 16 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 16, section 16 Fema, section 16 of the Foreign Exchange Management Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 5 reported judgments on this section are set out on this page, beginning with Kanwar Natwar Singh v. Directorate of Enforcement (05 Oct 2010).
What should I read with Section 16 of the Foreign Exchange Management Act, and has it changed?
Its own text turns on section 13 (Penalties), section 28 (Procedure and powers of Appellate Tribunal and Special Director (Appeals)), Indian Penal Code 193 (Punishment for false evidence), Indian Penal Code 228 (Intentional insult or interruption to public servant sitting in judicial proceeding), so none of them can safely be read on its own. 3 other provisions in this corpus refer back to it. 2 instruments name it without being made under it, most recently the Foreign Exchange (Compounding Proceedings) Rules 2000 (2000), then the Foreign Exchange Management (Encashment of Draft, Cheque, Instrument and payment of interest) Rules, 2000. (2000).
When did Section 16 of the Foreign Exchange Management Act come into force?
Section 16 of the Foreign Exchange Management Act, cited as Fema 16, 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
- 2. Definitions1265 words
- 14. Enforcement of the orders of Adjudicating Authority837 words
- 13. Penalties496 words
- 10. Authorised person489 words
- 49. Repeal and saving475 words
- 19. Appeal to Appellate Tribunal465 words
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 16 Oct 2026. This page is not a substitute for legal advice.