2. Repeal of FERA
3. Comparison between FEMA 1999 and FERA 1973
As way as transactions on account of change merchandise and services area unit involved, Federal Emergency Management Agency has by and huge removed the restrictions aside from the sanctioning provision for the Central Government to impose affordable restrictions publicly interest. The capital account transactions are going to be regulated by tally / Central Govt. that necessary circulars/notifications can have to be compelled to be issued below Federal Emergency Management Agency. The most objective that Federal Emergency Management Agency was introduced in Indian was to facilitate external trade and payments. Additionally, to the present, Federal Emergency Management Agency was conjointly developed to help orderly development and maintenance of the Indian for-ex market. It defines the procedures, formalities, dealings of all foreign exchange transactions in the Republic of India.
Repeal of FERA
FERA was repealed in 1998 by the govt of Atal Bihari Vajpayee and replaced by the interchange Management Act, which liberalized interchange controls and restrictions on foreign investment.
- FERA, 1973 (46 of 1973) is repealed and also the appellant Board ingrained below sub-section (1) of section fifty-two of the aforesaid Act shall stand dissolved.
- On the dissolution of the aforesaid appellant Board, the person appointed as Chairman of the appellant Board and the alternative person appointed as Member and holding workplace per se right away before such date shall vacate their individual workplaces and not everybody shall be entitled to say any compensation for the premature termination of the term of his office or of any contract of service.
- Yet something contained in the other law for the nowadays in effect, no court shall take cognizance of Associate in Nursing offense below the repealed Act and no adjudicating officer shall notify of any dispute below section fifty-one of the repealed Act once the expiration of an amount of 2 years from the date of the commencement of this Act.
- Subject to the provisions of sub-section (3) all offenses committed below the repealed Act shall still be ruled by the provisions of the repealed Act as if that Act had not been repealed.
- Yet such repeal
a) Its not inconsistent with the provisions of this Act, be deemed to own been
done or taken below the corresponding provisions of this Act;
(b) Any attractiveness most well-liked to the appellant Board below sub-section
(2) of section fifty-two of the repealed Act however not disposed of before the
commencement of this Act shall stand transferred
(c) Each attractiveness from any call or order of the appellant Board below sub-
section (3) or sub-section (4) of section fifty-two of the repealed Act shall, if
not filed before the commencement of this Act, be filed before the state
supreme court among an amount of sixty days of such commencement:
- Save as otherwise provided in sub-section (3), the mention of explicit matters in sub-sections (2), (4), and (5) shall not be controlled to prejudice or have an effect on the final application of section half dozen of the final Sections Act, 1897 (10 of 1897) with relevancy the result of repeal.
Comparison between FEMA 1999 and FERA 1973
|Parliament of India passed the interchange Regulation Act in 1973||Parliament of India enacted the interchange Management Act (FEMA) on twenty-nine Gregorian calendar month 1999 exchange FERA.|
|FERA came into force from Gregorian calendar month one, 1974.||Foreign Exchange Management Act came into force in June 2000.|
|FERA was repealed in 1998 by Vajpayee Government||FEMA succeeded FERA|
|FERA has eighty-one sections||FEMA has forty-nine sections|
|FERA was planned with the notion that interchange may be a scarce resource||Foreign Exchange Management Act was planned with the notion that interchange is Associate in nursing plus.|
|FERA rules regulated foreign payments.||FEMA centered on increasing the interchange reserves of the Republic of India, centered on promoting foreign payments and foreign trade.|
|The objective of FERA was conservation of Foreign Exchange||The target of FEMA is Management of Foreign Exchange|
|The definition of “Authorized Person” was slender.||The definition of “Authorized Person” was widened|
|Banking units failed to come back below the definition of licensed Persons.||Banking units came below the definition of a Licensed Person.|
|If there was a violation of FERA rules, then it absolutely was thought of as a Criminal offense.||If there was a violation of Foreign Exchange Management Act rules, then it’s thought of as a civil offense|
|A person suspected of FERA violation wasn’t provided legal facilitate.||Someone suspect of FEMA violation is going to be provided legal facilitate.|
|There was no provision for judicature, the appeals were sent to High Courts||there is provision for Special Director (Appeals) and Special judicature|
|For those guilty of violating FERA rules, there was a provision for direct social control.||For those guilty of violating FEMA rules, they need to pay a fine, ranging from the date of conviction, if the penalty isn’t paid within ninety days, then the guilty are going to be captive.|
|If there was a requirement for transferring funds for external operations, then previous approval of the depository financial institution of the Republic of India (RBI) is needed.||For External trade and remittances, there’s no want for previous approval from the depository financial institution of the Republic of India (RBI).|
|There was no provision for IT||There is provision for IT|