The Calcutta High Court held that appeals against FERA penalty orders retain their criminal character, even if filed after FEMA's enactment. Such matters can be heard as criminal appeals despite the repeal of FERA.
Calcutta HC Holds FERA Penalty Appeals Retain Criminal Character
The Calcutta High Court has ruled that appeals arising from penalty orders under the Foreign Exchange Regulation Act, 1973 (FERA) retain their penal nature, even when filed after the enactment of the Foreign Exchange Management Act, 1999 (FEMA). The decision clarifies long-pending litigation regarding the classification of such proceedings.
The court observed that since FERA was a penal statute, adjudication under it carried criminal consequences. The repeal of FERA and substitution with the civil framework under FEMA does not retroactively alter the character of ongoing or belated appeals. Therefore, such appeals are maintainable as criminal proceedings under appropriate jurisdiction.
This ruling has significant implications for practitioners handling legacy FERA cases. It allows aggrieved parties to pursue remedies in criminal forums, potentially expanding avenues for challenge. Lawyers must carefully assess jurisdiction and limitation issues when representing clients in post-FERA enforcement actions.
