This chapter deals with two important economic legislations—the Foreign Exchange Regulation Act (FERA), 1973 and the Foreign Exchange Management Act (FEMA). We study objectives of FERA, its restrictive provisions, provisions relating to enforcement, penalty and prosecution under it. We identify why it was draconian in nature, content and reach. We also examine FEMA, 1999 which repealed FERA, 1973, its objectives, how it is administered, provisions of FEMA, contravention and penalties, investigation, functions of enforcement directorate, procedural provisions of FEMA, adjudication and appeals, appeals against orders passed under FERA and finally, the decision of the Bombay High Court relating to FERA. After reading this chapter, ...

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