Calcutta High Court rules that appeals against FERA penalties retain criminal character, even if filed after FEMA replaced FERA. Jurisdiction lies with criminal courts, not civil forums.
Calcutta HC Rules on Jurisdiction in FERA Penalty Appeals
The Calcutta High Court has held that appeals arising from penalty proceedings under the now-repealed Foreign Exchange Regulation Act, 1973 (FERA) retain a criminal character, even if filed decades after the enactment of the Foreign Exchange Management Act, 2000 (FEMA). The ruling determines jurisdiction, confirming such matters fall within criminal courts.
The case involved appeals against adjudication orders from the 1990s that remained pending. The department argued for civil treatment; petitioners contended the penal nature persisted. The court noted that FERA penalties were punitive, included personal liability, and could lead to enforcement actions akin to criminal sanctions.
"Though FEMA introduced a civil, corrective framework, FERA's regime was fundamentally penal. This character does not vanish merely because proceedings linger beyond repeal,"
the court observed. The decision clarifies jurisdictional boundaries and may affect the handling of legacy FERA cases across India. Practitioners should ensure such appeals are filed in the appropriate criminal forum and remain mindful of procedural deadlines under old statutes.
