Authority issuing notice under FEMA, 1999 for violation of FERA, 1973 is bad in law

First Global Stockbroking P Ltd. Vs R. M. Ramchandani (Bombay High Court) Bombay High Court held that the Adjudicating Authority is not authorized to issue show cause notice under the Foreign Exchange Management Act (FEMA), 1999 for violations of provisions in Foreign Exchange Regulation Act (FERA), 1973. Facts- In these petitions the grounds taken are almost identical. According to petitioners, the show cause notices were issued by a person who was not so empowered as per law. Hence, the show cause notices issued are ex-facie without jurisdiction and illegal. Consequently, the order passed ag...