TOPIC: FOREIGN EXCHANGE MANAGEMENT 1999

SUBJECT: INVESTMENT LAW

PRESENTED BY: NISHA GUPTA (A90821517028)

RAJSHRI SINGH (A90821517055)

RAJ VARDHAN AGARWAL (A90821517066)
INTRODUCTION:

FEMA stands for Foreign Exchange Management Act, which is an official body that
consolidates and amends laws regulating foreign exchange in India. The primary purpose of
FEMA Act, 1999 was “facilitating external trade and payments and promoting the orderly
development and maintenance of foreign exchange market in India”. FEMA was enacted by the
Parliament of India in the winter session of 1999 to replace the Foreign Exchange Regulation
Act (FERA) of 1973.

The RBI proposed FEMA in 1999 to administrate foreign trade and exchange transactions.
According to the official order FEMA would “consolidate and amend the law relating to foreign
exchange (forex) with the objective of facilitating external trade and payments and for promoting
the orderly development and maintenance of foreign exchange market in India”.

The Foreign Exchange Management Act officially came into force on 1st June 2000. Thus, the
forex market in India is regulated by RBI and its arrival paved the way for the introduction of the
Prevention of Money Laundering Act (PMLA) of 2002.

GUIDELINES AND REGULATIONS FOR OUTWARD REMITTANCES UNDER

FEMA:

Most significantly, FEMA regarded all forex-related offences as civil offences, whereas FERA
regarded them as criminal offences. Additionally, there were other important facts such as:

• It did not apply to Indian citizens who resided outside India. The eligibility was checked
by calculating the number of days a person resided in India during the previous financial
year (182 days or more to be a resident). It was noted that even an office, a branch, or an
agency could be a ‘person’ for the purpose of checking residency. So these were the
standard norms for a person to be recognized as an authorized entity under FEMA.
• FEMA authorized the central government to impose restrictions on and supervise three
things – payments made to any person outside India or receipts from them, forex, and
foreign security deals.
 • It specified the areas around acquisition/holding of forex that required specific
permission of the Reserve Bank of India (RBI) or the government.
• As per the law, foreign exchange transactions have been divided into two categories -
capital account and current account. A capital account transaction altered the assets and
liabilities outside India or inside India but of a person resident outside India. Thus, any
transaction that changed overseas assets and liabilities for an Indian resident in a foreign
country, or vice versa, was classified as a capital account transaction. Any other
transaction fell into the current account category.

CAPITAL ACCOUNT TRANSACTIONS:

FEMA also gave the RBI the authority to regulate capital account transactions. As per the
Foreign Exchange Management (Permissible Capital Account Transactions) Regulations of
2000, “no person shall undertake or sell or draw foreign exchange to or from an authorised
person for any capital account transaction”. The Regulations prohibited any person resident
outside India from investing in Indian firms or organizations in the business of chit funds such as
a Nidhi company, agricultural or plantation activities, real estate (excluding development of
townships, construction of residential/commercial premises, roads or bridges), or construction of
farm houses, and/or in trading in Transferable Development Rights (TDRs).

It did allow for transactions carried out by Indian residents that included investments in foreign
securities, foreign currency loans raised in and out of India, transfer of immovable property
outside India, the issue of guarantees in favor of anybody living outside India, and the
export/import and holding of currency/currency notes.

CURRENT ACCOUNT TRANSACTIONS:

Under the Foreign Exchange Management Act, the central government issued the Foreign
Exchange Management (Current Account Transaction) Rules of 2000 which restricted forex
deals made by authorised persons under their current account. Under the FEMA rules and
regulations, current account transactions that were prohibited, not prohibited, and permitted,
required the prior approval of the central government and/or RBI.
Prohibited transactions included the remittance of lottery winnings, income from racing/riding,
purchase of lottery tickets, banned/proscribed magazines, football pools, sweepstakes,
commission on exports made towards equity investment in JVs/wholly owned subsidiaries of
Indian companies abroad, amongst others. Additionally, Nepal and Bhutan allowed the use of
Indian currency for local transactions, and the citizens of these countries were considered at par
with Indian citizens from a legal standpoint. Because of these provisions allowing for a common
currency market in India, Nepal and Bhutan, use of forex for transactions in – or with the
residents of – Nepal and Bhutan were also prohibited.

Moreover, FEMA recognized the growing international presence of Indians as well as the rising
contribution of Non-Resident Indians (NRIs) to the Indian economy. So, under the LSR limit
scheme of FEMA, one can send money to India -- up to a limit of US $250,000 in one financial
year. Also, it is applicable for a variety of purposes that include international travel to any
country (except Nepal and Bhutan), gifts, donations, travel for overseas employment, emigration
and maintenance of close relatives living abroad.

FEATURES AND PROVISIONS UNDER FEMA:

The RBI was the overall controlling authority as far as foreign exchange management was
concerned. It worked with and empowered the central bank to specify the different classes of
capital account transactions along with the exchange rate admissible for each such transaction.

• Authorised persons could facilitate forex trading; however, the Act empowered the RBI
to put several restrictions on their capital account. Authorized persons were expected to
provide details and information regarding forex transactions to the RBI on a regular basis.
• FEMA law allowed Indian residents to carry out transactions in forex, foreign security, or
to own immovable property abroad. This was permitted if the currency, security, or
property was owned or acquired when he/she was living outside India, or if it was
inherited by him/her from someone living outside India.
• FEMA compliance covered forex transactions and remittances which included
individuals or entrepreneurs moving money in or out of India, or exchanging foreign
currency in India for travel purposes.
 • There were many subsequent regulations and functions issued under the Act addressing
specific issues such as authentication of documents, current account transactions,
adjudication proceedings and appeal, compounding proceedings, permissible capital
account transactions and borrowing or lending in forex, amongst others.
• As per the rules defined under FEMA, there are few limits determined such as -- if a
person enacts a breach against quota, the penalty will be thrice the sum. Events where the
amount is not quantifiable, the penalty imposed remains up to Rs. 2 lakhs. In occurrences
where the violation continues on a daily basis, the amount stands at Rs. 5000 dailies
(excluding the first day of violation). Also, if there is any kind of property which is
involved during the course the asset will be confiscated and considered as a fee under
contravention of law.

Indeed, FEMA was drafted to create a more liberal foreign exchange market in India. The Act
encouraged deregulation of foreign exchange and smooth international trade. FEMA also has a
distinct administrative difference from FERA, which sought to impose sweeping regulations on
every aspect of India forex transaction. On the other hand, FEMA aimed to manage only certain
forex transactions that might have an impact on national security and the wider national
economy, and opened up individual forex transactions to the free market.

With Drip Capital’s expert guidance and consulting, entities can better comply with FEMA. This
includes specific guidance on FEMA-applicable areas and export businesses within India as well
as all branches, offices, and agencies located outside India that are owned or controlled by a
resident of India.

Objectives:

• To reinforce and amend the law relating to foreign exchange.

• To simplify and ease the external trade and payments.
• To promote the systematized development and maintenance of a healthy foreign
exchange market in India.
• To remove disparity of payments.
• To control and direct the employment business and investment of the non-residents.
 • To utilize the foreign exchange resources effectively for the country.

Features of FEMA:

• FEMA does not apply to the Indian citizens who resides outside India. This criterion is
checked by the number of days a person stays in India for more than 182 days in the
preceding financial year.
• Central Government has the authority given by FEMA to impose restrictions on and
supervise three things which are- payments made to any person outside India or receipts
from them, forex and foreign security deals.
• It specified the areas for holding of forex that required specific permission of the Reserve
Bank of India (RBI) or the government.
• FEMA classified the transaction into a current and capital account.

To whom it is applicable?

➢ It is applicable to the whole of India.

➢ Any branch, office, and agency, which is situated outside India, but it is owned or
controlled by a person resident in India. Any violation by these entities committed
outside India will be covered under this Act.

In general, FEMA includes three different types of categories and deals separately which are:

1) Person
2) A person resident in India
3) Person resident outside India

Now let’s discuss them in detail.

▪ Person:
For the object of the Act, a person includes the following: -
 • An individual,
• A Hindu undivided family,
• A company,
• A firm,
• An association of persons or a body of individuals whether incorporated or not,
• Any artificial judicial person not falling any of the preceding sub-clauses and,
• Any agency office or branch owned or controlled by such person.

▪ Person resident in India:

A. A person residing in India for more than 182 days during the course of a preceding
financial year but it does not include-

a. A person who has gone out of India or stays outside India, in any one of the cases-
• for taking up employment outside India, or
• for carrying on outside India a business or vocation, or
• for any other purpose, in such circumstances as would indicate his
intention to stay outside India for an uncertain period.
b. A person who has come to or stays in India, in any of the following cases-

• for taking up employment in India, or

• for carrying on in India a business or vocation, or
• for any other purpose, in such circumstances, as would indicate his intention to stay in
India for an uncertain period.

B. Any person or body corporate registered or incorporated in India.

C. An office, branch or agency in India owned or controlled by a person resident outside India.
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D. An office, branch or agency outside India owned or controlled by a person resident in India.

▪ Person resident outside India:

It means a person who is not an Indian resident or not a resident in Indian.

Foreign currency: It means any currency but other than Indian currency.

Foreign Exchange: It means foreign currency and it also includes deposits, credits, and balances
which are payable in foreign currency. Also, the drafts, traveler’s cheques, letters of credit or
bills of exchange which are expressed or drawn in Indian currency but is payable in any foreign
currency. Also, the drafts, traveler’s cheques, letters of credit or bills of exchange drawn by
banks, or any institutions or person outside India but are payable in Indian currency.

Foreign Security: It means any security which is in the form of shares, stocks, bonds,
debentures or any other instrument denominated or expressed in foreign currency. It also
includes foreign securities which are denominated or expressed in foreign currency, but where
the redemption or any form of return on these securities such as interest or dividends should be
payable in Indian currency.

Authorized Person:

Section 2(c) of the Foreign Exchange Management Act,1999 defines Authorised person. An
authorised person is a person who has given the authority for the conversion of the foreign
exchange. For example, if an Indian resident wants to visit the USA and requires their currency
which is dollars so for the exchange, he/she will only go to the authorised person or if a person
residing abroad wants to visit India and requires Indian currency then similarly, he/she will
approach an authorised person for the foreign exchange.
The Reserve Bank on an application made on this behalf may authorize any person to deal in
foreign exchange or in foreign securities. So, an authorised person is governed under this section
which states 4 persons as an authorised person-

• Authorised dealer, or
• Money changer, or
• Off-shore banking unit, or
• Any other person for the time being authorised to deal in foreign exchange or foreign
securities under Section 10 (1) of FEMA.

Section 10 of the Act in brief:

• Authorization under this Section should be in writing and should be subjected to the
regulations mentioned in that. –
• Any authorised person made, the reserve bank at any time can revoke such person if it
is satisfied that-
• It is in the public interest to do so; or
• An authorised person has failed to comply with the conditions on the grounds for
which the authorization was granted; or
• the authorised person has violated any of the provisions, rules, regulations mentioned
in this Act.

The Reserve Bank may order an authorised person to comply with a general or special direction
to deal with the foreign exchange or foreign securities. And also, if any transaction which
involves any foreign exchange or foreign currency which is not in compliance with the terms of
this provision then an authorised person without any prior permission from the Reserve Bank
must not engage in any type of this transaction.

Before undertaking any transaction in foreign exchange on behalf of any person an authorised
person shall require the declaration or information of that person that the transaction is not
designed for the purpose of contravention of this Act, rule or regulation etc.
If the person refuses to undertake the declaration then an authorised person shall refuse in
writing to undertake the transaction and also if the authorised person believes that a person
contravenes the provision of the Act can report the matter to the Reserve Bank.

Other than the authorised person, if any person acquires or purchases the foreign exchange and
use it for any other purpose which is not permissible under the provisions of this Act or does not
surrender within a specified time to the authorised person shall be considered to have committed
the violation under the provisions of this Act.

Adjudication and appeal under FEMA:

Appointment of Adjudicating Authority.

Section 16 states about the appointment of Adjudicating Authority

• The Central Government by publishing an order under the Official Gazette can
appoint as many officers of the Central Government as the adjudicating authorities for
holding an inquiry in the prescribed manner against whom the complaint has been
made.
• The Central Government while appointing the Adjudicating Authorities should also
specify in the order published in the Official Gazette about their respective
jurisdictions.
• The Adjudicating Authority must hold an enquiry only on a complaint made in
writing by an authorised officer through a general or special order by the Central
Government.
• The alleged person can appear either in person or can take the assistance of any legal
practitioner or a Chartered Accountant to present his case before the adjudicating
officer.
• Every Adjudicating Authority must have the same powers of a civil court.
• Every Adjudicating Authority should deal with the complaint diligently and also try to
dispose of the complaint within one year from the date of the receipt.
If the Adjudicating Authority fails to dispose of the complaint within the said or specified period
then the Authority should give the reasons in writing.

Appeal to Special Director (Appeals):

Section 17 of the Act deals with Appeal to Special Director

1. The Central Government by notification should appoint one or more Special Directors
(Appeals) to hear appeals against the orders of the Adjudicating Authorities and
should also specify in the notification the matter and places in which the Special
Director (Appeals) may exercise jurisdiction.
2. Being an Assistant Director of Enforcement or a Deputy Director of Enforcement or
any other person who is dissatisfied with an order made by the Adjudicating Authority
can file an appeal to the Special Director (Appeals).
3. When the aggrieved person receives the copy of an order made by the Adjudicating
Authority then appeal made shall be filed within forty-five days from that date.

If any person files the appeal after the date of the expiry then it is completely up to the Special
Director (Appeals) that he may entertain the appeal once he is satisfied that there was sufficient
cause for not filing it within that period.

1. The Special Director (Appeals) on receiving the appeal may give the parties to the
appeal an opportunity to be heard and if he is satisfied then may pass an order
regarding confirming, modifying or setting aside the order appealed against.
2. A copy of every order made by the Special Director (Appeals) should be sent to the
appellant parties and also to the concerned Adjudicating Authority.
3. The Special Director (Appeals) will also have the same powers of a civil court which
are conferred on the Appellate Tribunal.

Appellate Tribunal:
Section 18 of the Act, talks about the establishment of the Appellate Tribunal which says that the
Central Government through a notification may establish an Appellate Tribunal for foreign
exchange in order to hear the appeals regarding the orders of the Adjudicating Authorities and
the Special Director (Appeals).

Qualifications, for the appointment of Chairperson, Member Special Director (Appeals):

Section 21 of this Act, states the qualifications, for the appointment of Chairperson, Member
Special Director (Appeals).

A person shall only be qualified for the appointment if he:

• In the case of a Chairperson- if, he is or has been qualified to be the Judge of High
Court.
• In the case of a Member- if, he is or has been qualified to be the Judge of District
Court.
• In the case of a Special Director (Appeals)-if he was a member of the Indian Legal
Services and in that service held the post of Grade 1, or

Was a member of the Indian Revenue Service and held the post equivalent to a Joint Secretary of
the Government of India.

Procedure and powers of Appellate Tribunal and Special Director (Appeals):

Section 28 of the act states that

1. Both Appellate Tribunal and Special Director (Appeals) shouldn’t be bound by the
procedure of the Code of Civil Procedure instead should be guided by the principle of
natural justice and should follow the provisions of this Act.
2. While trying any suit both of them should have the same powers as a civil court under
the Code of Civil Procedure.
 3. Any order passed by the Appellate Tribunal or the Special Director (Appeals) under
this Act shall be performed or executed by them as a decree of a civil court and, for
this purpose both of them must have all the powers of a civil court.
4. The Appellate Tribunal or the Special Director (Appeals) can also transfer any order
made by it to a civil court having local jurisdiction. And such civil court shall execute
the order as if it were a decree made by that court.

Appeal to High Court:

If any person is dissatisfied with the decision of the Appellate Tribunal, he/she may file an
appeal to the High Court within sixty days of that communication of the decision or order. High
Court may give a further extension of sixty-days if the Court is satisfied with the reasons for the
delay of the appeal filed by the appellant.

Directorate of Enforcement:

Section 36 of this Act, talks about Directorate of Enforcement2

1. The Central Government for the purpose of this Act may establish Directorate of
Enforcement with a Director and with that other officers or class of officers as the
government thinks fit and they will be called as Officers of Enforcement.
2. The Director of Enforcement or an Additional Director of Enforcement or a Special
Director of Enforcement or a Deputy Director of Enforcement are authorised by the
Central Government to appoint officers of Enforcement below the rank of an Assistant
Director of Enforcement.
3. The officer of Enforcement can exercise his powers and duties apart from the
limitations or conditions imposed on him by the Central Government under this Act.

Power of search and seizure:

https://www.advocatekhoj.com/library/bareacts/foreignexchange/index.php?Title=Foreign%20Exchange%20Man
agement%20Act,%201999
Section 37 of the Act states that

1. If any person violates or contravenes any rule, provision, order etc. which was
restricted or specifically mentioned not to do then the Director of Enforcement and
other officers of Enforcement above the rank of an Assistant Director can only
investigate.
2. Through a notification the Central Government can authorize any officer or class of
officers in the Central Government, State Government or the Reserve Bank, to
investigate any contravention.
3. Similar powers which are conferred on the Income-tax authorities under the Income-
tax Act, 1961 should be exercised by the officers and shall exercise such powers,
subject to such limitations laid down under that Act.

Contraventions and Penalties:

If any person contravenes any provision, rule, order, regulation or direction of this Act. The
person will be liable to pay the fine for that contravention and thrice the amount which is
mentioned in the Act where the violation is measurable or up to two lakh rupees where the
amount cannot be determined or measured. Also, where such violation is a continuing one then a
further penalty will be extended to five thousand rupees every day.

Any Adjudicating Authority adjudging any contravention and if he thinks fit or is satisfied with
the violation done then in addition to any penalty he may direct the party who is responsible for
this contravention, that any currency, property, security or money in respect of which the
contravention has taken place shall be confiscated to the Central Government and further direct
that if there are any foreign exchange holdings of the persons committing the contraventions
must be brought back into India or must be retained outside India in accordance with the
directions made in this behalf.
If any person fails to make full payment of the penalty imposed on him within a period of ninety
days from the date on which the notice for payment of such penalty is served on him, he shall be
liable to civil imprisonment.

Power to compound contravention:

1. Any contravention under section 13 may, on an application made by the person

committing such contravention, be compounded within one hundred and eighty days
from the date of receipt of application by the Director of Enforcement or such other
officers of the Directorate of Enforcement and officers of the Reserve Bank as may be
authorised in this behalf by the Central Government in such manner as may be
prescribed.
2. Where a contravention has been compounded under sub-section (l), no proceeding or
further proceeding, as the case may be, shall be initiated or continued, as the case may be,
against the person committing such contravention under that section, in respect of the
contravention so compounded.

Appeal to Special Director (Appeals):

1. The Central Government shall, by notification, appoint one or more Special Directors
(Appeals) to hear appeals against the orders of the Adjudicating Authorities under this
section and shall also specify in the said notification the matter and places in relation to
which the Special Director (Appeals) may exercise jurisdiction.
2. Any person aggrieved by an order made by the Adjudicating Authority, being an
Assistant Director of Enforcement or a Deputy Director of Enforcement, may prefer an
appeal to the Special Director (Appeals).
3. Every appeal under sub-section (1) shall be filed within forty-five days from the date on
which the copy of the order made by the Adjudicating Authority is received by the
aggrieved person and it shall be in such form, verified in such manner and be
accompanied by such fee as may be prescribed: Provided that the Special Director
(Appeals) may entertain an appeal after the expiry of the said period of forty-five days, if
he is satisfied that there was sufficient cause for not filing it within that period.
 4. On receipt of an appeal under sub-section (1), the Special Director (Appeals) may after
giving the parties to the appeal an opportunity of being heard, pass such order thereon as
he thinks fit, confirming, modifying or setting aside the order appealed against.
5. The Special Director (Appeals) shall send a copy of every order made by him to the
parties to appeal and to the concerned Adjudicating Authority.
6. The Special Director (Appeals) shall have the same powers of a civil court which are
conferred on the Appellate Tribunal under sub-section (2) of section 28.

Terms and conditions of service:

The salary and allowances payable to and the other terms and conditions of service of the
Chairperson, other Members and the Special Director (Appeals) shall be such as may be
prescribed: —The salary and allowances payable to and the other terms and conditions of service
of the Chairperson, other Members and the Special Director (Appeals) shall be such as may be
prescribed" Provided that neither the salary and allowances nor the other terms and conditions of
service of the Chairperson or a Member shall be varied to his disadvantage after appointment.

Vacancies:

If, for reason other than temporary absence, any vacancy occurs in the office of the Chairperson
or a Member, the Central Government shall appoint another person in accordance with the
provisions of this Act to fill the vacancy and the proceedings may be continued before the
Appellate Tribunal from the stage at which the vacancy is filled. —If, for reason other than
temporary absence, any vacancy occurs in the office of the Chairperson or a Member, the Central
Government shall appoint another person in accordance with the provisions of this Act to fill the
vacancy and the proceedings may be continued before the Appellate Tribunal from the stage at
which the vacancy is filled."

Resignation and removal:

1. The Chairperson or a Member may, by notice in writing under his hand addressed to the
Central Government, resign his office\:" Provided that the Chairperson or a Member
shall, unless he is permitted by the Central Government to relinquish his office sooner,
 continue to hold office until the expiry of three months from the date of receipt of such
notice or until a person duly appointed as his successor enters upon his office or until the
expiry of term of office, whichever is the earliest.
2. The Chairperson or a Member shall not be removed from his office except by an order
by the Central Government on the ground of proved misbehaviour or incapacity after an
inquiry made by such person as the President may appoint for this purpose in which the
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Chairperson or a Member concerned has been informed of the charges against him and
given a reasonable opportunity of being heard in respect of such charges.

CASE STUDY:

RBI asks 125 crore fees for investing Mutual fund settlement on Reliance Infrastructure.

Why RBI ask penalty to pay on Reliance Energy? For the justification of its levy of fine of Rs
125 Crores, RBI viewed that as the Reliance has made an additional income of Rs 124 crores by
parking its ECB in its mutual funds in contravention of ECB end-use restrictions; Reliance
Energy was liable to pay a fine of Rs 124.68 crores.

IN 2006

In its order, RBI said Reliance Energy raised a $360-million ECB on July 25, 2006, for
investment in infrastructure projects in India. The ECB proceeds were drawn down on November
15, 2006, and temporarily parked overseas in liquid assets.

IN 2007

On April 26, 2007, Reliance Energy repatriated the ECB proceeds worth $300 million to India
while the balance remained abroad in liquid assets.

It then invested these funds in Reliance Mutual Fund Growth Option; and, Reliance Floating
Rate Fund Growth Option on April 26, 2007. On the following day, i.e., on April 27, 2007, the

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entire money was withdrawn and invested in Reliance Fixed Horizon Fund 3 Annual Plan series
V.

IN 2008

On March 5, 2008, Reliance Energy repatriated $500 million (which included the ECB proceeds
repatriated on April 26, 2007, and invested in capital market instruments); for investment in the
capital of an overseas joint venture called Gourock Ventures based in the British Virgin Islands.

RBI said

Under FEMA guidelines issued in 2000; a borrower requires to keep ECB funds parked abroad
till the actual requirement in India. Further, the central bank said a borrower cannot utilize the
funds for any other purpose.

The RBI order signed by its chief general manager Salim Gangadharan said;

During the personal hearing on June 16, 2008, Reliance Energy, represented by group managing
director Gautam Doshi and Price Waterhouse Coopers executive director Sanjay Kapadia,
admitted the contravention and sough compounding. The company said due to unforeseen
circumstances, its Dadri power project was delayed. Therefore, the ECB proceeds of $300
million were bought to India; and, were parked in liquid debt mutual fund schemes, it added.

FINAL OUTCOME:

It said as the company has made an additional income of Rs 124 crore; it is liable to pay a fine of
Rs 124.68 crore. In August this year, the company submitted another fresh application for
compounding; and, requested for withdrawal of the present application dated April 17, 2008; to
include contravention committed in respect of another transaction of ECB worth $150 million.
But RBI said the company will have to make a separate application for every transaction; and,
two transactions are different, independent, and cannot be clubbed together.
CONCLUSION:

The Foreign Exchange Regulation Act, 1973 (46 of 1973) is hereby repealed and the Appellate
Board constituted under sub-section (1) of section 52 of the said Act (hereinafter referred to as
the repealed Act) shall stand dissolved.
On the dissolution of the said Appellate Board, the person appointed as Chairman of the
Appellate Board and every other person appointed as Member and holding office as such
immediately before such date shall vacate their respective offices and no such Chairman or other
person shall be entitled to claim any compensation for the premature termination of the term of
his office or of any contract of service.
Notwithstanding anything contained in any other law for the time being in force, no court shall
take cognizance of an offence under the repealed Act and no adjudicating officer shall take
notice of any contravention under section 51 of the repealed Act after the expiry of a period of
two years from the date of the commencement of this Act.
Subject to the provisions of sub-section (3) all offences committed under the repealed Act shall
continue to be governed by the provisions of the repealed Act as if that Act had not been
repealed.
Notwithstanding such repeal, —
(a) anything done or any action taken or purported to have been done or taken including any rule,
notification, inspection, order or notice made or issued or any appointment, confirmation or
declaration made or any licence, permission, authorisation or exemption granted or any
document or instrument executed or any direction given under the Act hereby repealed shall, in
so far as it is not inconsistent with the provisions of this Act, be deemed to have been done or
taken under the corresponding provisions of this Act;
(b) any appeal preferred to the Appellate Board under sub-section (2) of section 52 of the
repealed Act but not disposed of before the commencement of this Act shall stand transferred to
and shall be disposed of by the Appellate Tribunal constituted under this Act;
(c) every appeal from any decision or order of the Appellate Board under sub-section (3) or sub-
section (4) of section 52 of the repealed Act shall, if not filed before the commencement of this
Act, be filed before the High Court within a period of sixty days of such commencement:
Provided that the High Court may entertain such appeal after the expiry of the said period of
sixty days if it is satisfied that the appellant was prevented by sufficient cause from filing the
appeal within the said period.
(6) Save as otherwise provided in sub-section (3), the mention of particular matters in sub-
sections (2), (4) and (5) shall not be held to prejudice or affect the general application of section
6 of the General Clauses Act, 1897 (10 of 1897), with regard to the effect of repeal.