Economic Laws Paper 6D(Optional Paper)

S. NO CHAPTER NAME PAGE NO

2 COMPETITION ACT, 2002 2.1-2.71

3 THE REAL ESTATE (REGULATION & 3.1-3.60

DEVELOPMENT) ACT, 2016

4 INSOLVENCY AND BANKRUPTCY CODE, 2016 4.1-4.88

5 PREVENTION OF MONEY LAUNDERING ACT, 2002 5.1-5.58

6 THE FOREIGN EXCHANGE MANAGEMENT ACT, 1999 6.1-6.51

7 PROHIBITION OF BENAMI PROPERTY TRANSACTIONS ACT, 1988 7.1-7.44

THIS DOCUMENT CONTAINS INDEX NUMBERS AS PER ICAI STUDY

MATERIAL.
6D IS DIVIDED INTO TWO CONCEPTUAL AREA AND PROCEDURAL AREA.
PROCEDURES CAN DIRECTLY BE REFERRED FROM THE INDEX AND
CONCEPTUAL AREAS LIKE DEFINITIONS AND INTERPRETATIONS REFER
OUR CLASS DIAGRAMS AND NOTES.

KOUSHIK MUKHESH ACA, CMA, B.COM 1

2. COMPETITION ACT, 2002

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1 INTRODUCTION 2.2

Object behind the enactment of the Competition Act, 2002 2.2

What is Competition? 2.3

Competition Policy and Law 2.3

Main Ingredients of Competition Law 2.4

2 DEFINITIONS 2.4

3 Prohibition of certain Agreements , Abuse of Dominant position and 2.13

Regulation
of combinations

1. Anti competitive agreements [Section 3] 2.13

Bid-rigging 2.13

Agreement at different stages in different markets 2.14

Restriction of rights under some Acts 2.14

Prohibition of export of rights 2.14

2. Abuse of dominant position [Section 4] 2.15

predatory price 2.15

3 .Combination [Section 5] 2.15

4. Regulation of combinations [Section 6] 2.19

Foreign institutional investor 2.20

Venture capital fund 2.20

COMPETITION COMMISSION OF INDIA (PROCEDURE IN REGARD TO 2.20
THE
TRANSACTION OF BUSINESS RELATING TO COMBINATIONS)
REGULATIONS, 2011
Form of notice for the proposed combination 2.21

Filing of details of acquisition under sub-section (5) of section 6 of the Act 2.23

Belated notice 2.23

Failure to file notice 2.23

Obligation to file the notice 2.24

KOUSHIK MUKHESH ACA, CMA, B.COM 2

 Procedure for filing notice 2.24

Scrutiny of notice 2.25

Computation of time limit 2.26

Intimation of any change 2.26

Termination of proceedings 2.27

Mode of service of notice(s), etc. 2.27

Prima facie opinion on the combination 2.27

Calling for a report from the Director General 2.28

Report by the Director General 2.28

Publication of the details of the combination 2.28

Proof of publication 2.29

Appearance of the parties before the Commission 2.29

Modification to the proposed combination 2.29

Compliance by the parties for carrying out modification 2.30

Appointment of independent agencies to oversee modification 2.30

Orders of the Commission 2.31

Request for confidentiality 2.31

Overriding effect 2.32

4 COMPETITION COMMISSION OF INDIA 2.32

Establishment of Commission [Section 7] 2.32

Composition of Commission [Section 8] 2.32

Selection committee for selection of chairperson and Members of commission ( 2.32
Sec 9)
Term of office of Chairperson and other Members [Section 10] 2.33
Resignation, removal and suspension of Chairperson and other members 2.34
[Section 11]
Restriction on employment of Chairperson and other Members in certain 2.34
cases [Section 12]
Administrative powers of Chairperson [Section 13] 2.34

Salary and allowances and other terms and conditions of 2.36

service of Chairperson and other Members [Section 14]

Vacancy, etc. not to invalidate proceedings of Commission [Section 15] 2.36

Appointment of Director General, etc. [Section 16] 2.36

KOUSHIK MUKHESH ACA, CMA, B.COM 3

 Secretary and officers and other employees of Commission [Section 17] 2.36

(Continued)

5 DUTIES, POWERS AND FUNCTIONS OF COMMISSION 2.37

Duties of Commission [Section 18] 2.37

Inquiry into certain agreements and dominant position of enterprise 2.37

[Section 19]
Powers and Functions of the Commission 2.38

Inquiry into combination by Commission [Section 20] 2.39

Reference by statutory authority [Section 21] 2.41

Reference by Commission [Section 21 A] 2.41

Meetings of Commission [Section 22] 2.41

Procedure for inquiry under Section 19 [Section 26] 2.42

Orders by Commission after inquiry into agreements or abuse of dominant 2.43

position [Section 27]
Division of enterprise enjoying dominant position [Section 28] 2.44

Procedure for investigation of combination [Section 29] 2.44

Procedure in case of notice under sub-section 2 of section 6 [Section 30] 2.45

Orders of Commission on certain combinations [Section 31] 2.45

Acts taking place outside India but having an effect on competition in India 2.47
[Section 32]
Power to issue interim orders [Section 33] 2.47

Appearance before Commission [Section 35] 2.48

Power of Commission to regulate its own procedure [Section 36] 2.48

Rectification of orders [Section 38] 2.49

Execution of orders of Commission imposing monetary penalty [Section 39] 2.49

6 DUTIES OF DIRECTOR GENERAL 2.50

Director General to investigate contravention [Section 41] 2.50

7 PENALTIES 2.50

Contravention of orders of Commission [Section 42] 2.50

Compensation in case of contravention of orders of Commission [Section 2.51

42A]
Penalty for failure to comply with directions of Commission and Director 2.51
General [Section43]
Power to impose penalty for non-furnishing of information on combinations 2.51
[Section 43A]

KOUSHIK MUKHESH ACA, CMA, B.COM 4

 Penalty for making false statement or omission to furnish material information 2.51
[Section 44]
Penalty for offences in relation to furnishing of information [Section 45] 2.52

Power to impose lesser penalty [Section 46] 2.52

Crediting sums realised by way of penalties to Consolidated Fund of India 2.53

[Section 47]
Contravention by companies [Section 48] 2.53

8 COMPETITION ADVOCACY 2.53

Competition advocacy [Section 49] 2.53

9 FINANCE, ACCOUNTS AND AUDIT 2.54

Grants by Central Government [Section 50] 2.54

Accounts and Audit [Section 52] 2.54

Furnishing of returns, etc., to Central Government [Section 53] 2.54

10 APPELLATE TRIBUNAL 2.55

Appellate Tribunal [Section 53A] 2.55

Appeal to Appellate Tribunal [Section 53B] 2.56

Awarding compensation [Section 53N] 2.56

Procedures and powers of Appellate Tribunal [Section 53 O] 2.57

Execution of orders of Appellate Tribunal (Section 53P) 2.58

Contravention of orders of Appellate Tribunal [Section 53Q] 2.58

Right to legal representation [Section 53S] 2.59

Appeal to Supreme Court [Section 53T] 2.59

Power to Punish for contempt [Section 53U] 2.59

COMPETITION APPELLATE TRIBUNAL (PROCEDURE) REGULATIONS, 2011 2.60

Language of Tribunal 2.60

Sittings of Tribunal 2.60

Functions of Registrar 2.60

Registration of appeal or application 2.60

Pleadings before Tribunal 2.61

Service of notice or other documents 2.61

Adjournment of hearings 2.61

Custody of records 2.62

KOUSHIK MUKHESH ACA, CMA, B.COM 5

 Inspection and certified copies of documents and other papers 2.62

Order of judgment of Tribunal 2.62

Rectification of errors 2.62

Interpretation 2.62

(Continued)

11 MISCELLANEOUS 2.63

Power to exempt [Section 54] 2.63

Power of Central Government to issue directions [Section 55] 2.63

Power of Central Government to supersede Commission [Section 56] 2.63

Restriction on disclosure of information [Section 57] 2.64

Chairperson, Members, Director General, Registrar, officers and other

employees, etc. of 2.64
Commission to be public servants [Section 58]
Protection of action taken in good faith [Section 59] 2.65

Act to have overriding effect [Section 60] 2.65

Exclusion of jurisdiction of civil courts [Section 61] 2.65

Application of other laws not barred [Section 62] 2.65

Power to make rules [Section 63] 2.65

Power to make regulations [Section 64] 2.67

Power to remove difficulties [Section 65] 2.68

Repeal and saving [Section 66] 2.68

KOUSHIK MUKHESH ACA, CMA, B.COM 6

3.THE REAL ESTATE (REGULATION &DEVELOPMENT) ACT, 2016

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1 INTRODUCTION 3.2

Real Estate Act – Important Dates and Timelines 3.2

RERA at a Glance 3.2

The prominent features of the ACT are as follows 3.3

Offences by companies 3.6

Scope of RERA 3.6

Benefits of RERA for Allottees 3.7

2 DEFINITIONS 3.8

3 Registration of Real Estate projects and Real Estate Agents 3.17

Prior registration of real estate project with Real Estate Regulatory Authority 3.17
[Section 3]
Application for registration of real estate projects (Section 4) 3.18

Grant of registration [Section 5] 3.20

Extension of registration [Section 6] 3.21

Revocation of Registration [Section 7] 3.21

Obligation of authority consequent upon lapse of or on revocation of 3.23
registration [Section 8]
Registration of real estate agents [Section 9] 3.23

Functions of real estate agents [Section 10] 3.24

4 FUNCTIONS AND DUTIES OF PROMOTER

Functions and Duties of Promoter [Section 11] 3.25

Obligations of Promoter regarding veracity of the advertisement or 3.27

prospectus [Section 12]

No deposit or advance to be taken by promoter without first entering into 3.28

agreement for sale [Section 13]

Adherence to sanctioned plans and project specifications by the promoter 3.28
[Section 14]

KOUSHIK MUKHESH ACA, CMA, B.COM 7

 Obligations of promoter in case of transfer of a real estate project to a third 3.29
party [Section 15]
Obligations of promoter regarding insurance of real estate project [Section 3.30
16]
Transfer of title [Section 17] 3.30

Return of amount and compensation [Section 18] 3.31

5 RIGHTS AND DUTIES OF ALLOTTEES [SECTION 19] 3.31

6 THE REAL ESTATE REGULATORY AUTHORITY 3.33

Establishment and incorporation of Real Estate Regulatory Authority 3.33
[Section 20]
Composition of the Authority [Section 21] 3.33

Qualifications of Chairperson and Members of Authority [Section 22] 3.33

Term of office of Chairperson and Members [Section 23] 3.34

Salary and allowances payable to Chairperson and Members [Section 24] 3.34

Administrative powers of Chairperson [Section 25] 3.34

Removal of Chairperson and Members from office in certain circumstances 3.35
[Section 26]
Restrictions on Chairperson or Members on employment after cessation of 3.35
office [Section 27]
Officers and other employees of Authority [Section 28] 3.36

Meetings of Authority [Section 29] 3.36

Vacancies, etc., not to invalidate proceeding of Authority [Section 30] 3.37

Filing of complaints with the Authority or adjudication officer [Section 31] 3.37

Functions of Authority for promotion of real estate sector [Section 32] 3.37

Advocacy and awareness measures [Section 33] 3.38

Functions of Authority [Section 34] 3.38

Powers of Authority to call for information, conduct investigations [Section 3.39
35]
Power to issue interim orders [Section 36] 3.39

Powers of Authority to Issue directions [Section 37] 3.39

Powers of Authority [Section 38] 3.40

Rectification of orders [Section 39] 3.40

Recovery of Interest or penalty or compensation and enforcement of order, etc. 3.40
[Section 40]
7 CENTRAL ADVISORY COUNCIL 3.41

Establishment of Central Advisory Council [Section 41] 3.41

KOUSHIK MUKHESH ACA, CMA, B.COM 8

 Functions of Central Advisory Council [Section 42] 3.41

(Continued)

8 THE REAL ESTATE APPELLATE TRIBUNAL 3.42

Establishment of Real Estate Appellate Tribunal [Section 43] 3.42

Application for settlement of disputes and appeals to Appellate Tribunal 3.42
[Section 44]
Composition of Appellate Tribunal [Section 45] 3.43

Qualifications for appointment of Chairperson and Members [Section 46] 3.43

Term of office of Chairperson and Members [Section 47] 3.44

Salary and allowances payable to Chairperson and Members [Section 48] 3.44
Removal of Chairperson and Member from office in certain circumstances 3.45
[Section 49]
Restrictions on Chairperson or Members on employment after cessation of
office [Section 27] 3.46

Officers and other employees of Appellate Tribunal [Section 51] 3.46

Vacancies [Section 52] 3.47

Powers of Tribunal [Section 53] 3.47

Administrative powers of Chairperson of Appellate Tribunal [Section 54] 3.47

Vacancies, etc., not to invalidate proceeding of Appellate Tribunal [Section 3.48
55]
RIGHT TO LEGAL REPRESENTATION [SECTION 56] 3.48
Orders passed by Appellate Tribunal to be executable as a decree [Section 3.48
57]
Appeal to High Court [Section 58] 3.49

9 OFFENCES, PENALTIES AND ADJUDICATION 3.49

Punishment for non-registration under section 3 [Section 59] 3.49

Penalties ( sec 60 - 68 ) 3.49

Offences by Companies [Section 69] 3.51

Compounding of Offences [Section 70] 3.51

Power to adjudicate [Section 71] 3.52

Factors to be taken into account by the adjudicating officer [Section 72] 3.52

10 FINANCE, ACCOUNTS, AUDITS AND REPORTS 3.53

Constitution of Fund [Section 75] 3.53

Crediting sums realised by way of penalties to Consolidated Fund of India or 3.54

KOUSHIK MUKHESH ACA, CMA, B.COM 9

 State account [Section 76]

Budget, accounts and audit [Section 77] 3.54

Annual report [Section 78] 3.54

11 MISCELLANEOUS 3.55

Bar of jurisdiction [Section 79] 3.55

Cognizance of offences [Section 80] 3.55

Delegation [Section 81] 3.55

Power of appropriate Government to supersede Authority [Section 82] 3.55

Power of appropriate Government to issue directions to Authority and
obtain reports and returns
[Section 83] 3.56

Powers of appropriate Government to make rules (Section 84) 3.57

Power to make regulations [Section 85] 3.58

Laying of rules [Section 86] 3.59

Members, etc., to be public servants [Section 87] 3.60

Application of other laws not barred [Section 88] 3.60

Act to have overriding effect [Section 89] 3.60

Protection of action taken in good faith [Section 90] 3.60

Power to remove difficulties [Section 91] 3.60

Repeal [Section 92] 3.60

KOUSHIK MUKHESH ACA, CMA, B.COM 10

 4. INSOLVENCY AND BANKRUPTCY CODE, 2016

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1 INTRODUCTION 4.2

Concept of Insolvency and Bankruptcy 4.2

Relationship between Bankruptcy, Insolvency & Liquidation 4.3

Need for a New Law 4.4

Objectives 4.5

The following benefits are expected from the new Law 4.6

Structure of the Code 4.6

Foundation of Code 4.7

Flow of insolvency process 4.8

Provisions of this Code to override other laws 4.9

Applicability of the Code 4.9

Exemption to financial service providers from the applicability of the Code 4.10

Features of the Insolvency and Bankruptcy Code 4.10

Key Objectives of the Code 4.11

Regulatory Mechanism 4.11

Insolvency and Bankruptcy Board of India 4.12

Composition of the Board 4.12

Insolvency Professional Agencies 4.12

Principles governing registration of Insolvency Professional Agency 4.13

Functions of Insolvency professional agencies (IPA) 4.13

Insolvency Professionals 4.14

Information Utilities 4.14

Obligations of Information Utility 4.14

Adjudicating Authority 4.15

2 IMPORTANT DEFINITIONS [SECTIONS 3 AND 5] 4.16

3 CORPORATE INSOLVENCY RESOLUTION PROCESS ( SEC 4, 6-32 ) 4.22

KOUSHIK MUKHESH ACA, CMA, B.COM 11

 Process Flow 4.23

(I) Application to National Company Law Tribunal 4.23

Filing of application before NCLT 4.24

Who can initiate insolvency resolution process? 4.24

(A) Initiation of corporate insolvency resolution process by financial 4.24
creditor
(B) Insolvency resolution by operational creditor 4.25
(C) Initiation of corporate insolvency resolution process by corporate 4.27
applicant
Persons not entitled to initiate insolvency process 4.28

(II) Adjudication: Admission or Rejection of Application 4.28

Time-limit for completion of insolvency resolution process 4.28

Process flow for insolvency resolution process 4.29

(III) Declaration of moratorium and public announcement: 4.29

Moratorium: 4.30

When Moratorium period shall cease to have effect 4.30

Public Announcement 4.31

(IV) Appointment, Term and Powers of Interim Resolution Professional 4.31
(IRP)
Period of appointment of IRP 4.32

Powers of IRP 4.32

(V) Resolution Professional (RP), Appointment , Powers, Roles and duties 4.33
Eligibility of an insolvency Professional to be appointed as a Resolution 4.34
Professional
Preparation of information memorandum 4.35

(VI) Committee of Creditors 4.35

First Meeting of Creditors 4.37

Approval of committee of creditors for certain actions 4.38

(VII) Resolution Plan 4.39

Appeal against Approval of Resolution Plan 4.40

Consequences of non-submission of a Resolution Plan 4.41

4 LIQUIDATION PROCESS 4.41

(I) Initiation of liquidation: 4.41

(II) Appointment of liquidator 4.43

KOUSHIK MUKHESH ACA, CMA, B.COM 12

 (III) Powers and duties of liquidator 4.44

Powers of liquidator to access information 4.45

(Iv) Liquidation estate 4.46

Comprising of liquidation estate 4.46

Exceptions to the assets from inclusion in the liquidation estate assets 4.46

(V) Consolidation of claims 4.47

Verification of claims 4.48

(VI) Preferential transactions & Extortionate Credit Transactions 4.48

Orders in case of preferential transactions 4.50

Avoidance of undervalued transactions 4.51

Transactions defrauding creditors 4.51

Extortionate credit transactions: 4.51

Order of Adjudicating authority 4.52

(VII) Secured creditor in liquidation proceedings 4.52

(VIII) Distribution of assets 4.53

Fees to liquidator 4.55

(IX) Dissolution of corporate debtor 4.55

5 FAST TRACK INSOLVENCY RESOLUTION FOR CORPORATE PERSONS 4.56

Who may apply? 4.56

Time period for completion of fast track corporate insolvency resolution 4.56
process
Manner of initiating fast track corporate insolvency resolution process 4.57

Applicability of Chapter II to his chapter 4.57

6 VOLUNTARY LIQUIDATION OF CORPORATE PERSONS [SECTION 59] 4.57

7 ADJUDICATING AUTHORITY FOR CORPORATE PERSONS 4.59

Adjudicating Authority for corporate persons 4.59

Period of moratorium excluded for purpose of limitation 4.60

Appeals and Appellate Authority 4.60

Appeal to Supreme Court on a question of law 4.60

Civil Court is prohibited to entertain any suit or proceedings 4.61

Expeditious disposal of applications 4.61

KOUSHIK MUKHESH ACA, CMA, B.COM 13

 Fraudulent or malicious initiation of proceedings 4.61

Fraudulent trading or wrongful trading 4.61

Proceedings under section 66: 4.62

8 OFFENCES AND PENALTIES 4.62

INSOLVENCY RESOLUTION AND BANKRUPTCY FOR INDIVIDUALS AND
9 PARTNERSHIP FIRMS 4.68
10 REGULATION OF INSOLVENCYPROFESSIONALS AGENCIES, UTILITIES 4.68

[I] The Insolvency and Bankruptcy Board of India 4.68

Establishment and incorporation of Board 4.68

Constitution of Board 4.69

Removal of member from office 4.70

Meetings of Board 4.70

Member not to participate in meetings in certain cases 4.70

Vacancies, etc., not to invalidate proceedings of Board, Officers and employees 4.71
of Board
Powers and Functions of the Board 4.71
Constitution of advisory committee, executive committee or other 4.74
committee.
[II] Insolvency Professional Agencies 4.74

Manner of registration of insolvency professional agency 4.74

Appeal to National Company Law Appellate Tribunal 4.75

Governing Board of insolvency professional agency 4.75

Functions of insolvency professional agencies. 4.75

[III] Insolvency Professionals 4.76

Who may act as insolvency professionals? 4.76

Registration of insolvency professionals 4.77

Functions and obligations of insolvency professionals (IP) 4.78

[IV] Information Utilities 4.78

Who shall carry on the business as information utility? 4.78

Manner of registration of information utility 4.78

Eligibility for registration 4.79

Appeal to National Company Law Appellate Tribunal 4.80

Governing Board of information utility 4.80

KOUSHIK MUKHESH ACA, CMA, B.COM 14

Composition of the Governing Board. 4.80

Obligations of information utility 4.81

Procedure for submission, etc., of financial information 4.81

Rights and obligations of persons submitting financial information 4.81

(Continued)

(V) Inspection and Investigation 4.82

Complaints against insolvency professional agency or its member or 4.82
information utility.
Investigation of insolvency professional agency or its member or information 4.82
utility.
Show cause notice to insolvency professional agency or its member or 4.83
information utility
Disposal of Show-cause notice 4.83

Appointment of disciplinary committee 4.84

(VI) Finance, Accounts and Audit 4.85

Grants by Central Government 4.85

Accounts and audit 4.85

Audit of Accounts by the CAG: 4.85

Presentation of certified copy of the accounts and audit report to CG 4.86

Power of Central Government to issue directions 4.86

Power of Central Government to supersede Board: 4.86

Upon the publication of a notification 4.86

On the expiration of the period of supersession 4.87

Delegation 4.87

Bar of jurisdiction 4.87

Members, officers and employees of Board to the public servants 4.87

Protection of action taken in good faith 4.87

Agreements with Foreign Countries 4.87

Letter of request to a country outside India in respect of assets 4.88

Trial of offences by Special Court 4.88

Cognizance of an offence committed under this code 4.88

Appeal and revision 4.88

Power to make regulations 4.88

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KOUSHIK MUKHESH ACA, CMA, B.COM 16
 5. PREVENTION OF MONEY LAUNDERING ACT, 2002

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1 INTRODUCTION 5.2

Money Laundering 5.2

Understanding Money Laundering 5.4

How Hawala Works 5.4

2 DEFINITIONS 5.4

3 PUNISHMENT for the offence of Money Laundering ( sec 3 &4 ) 5.8

Section 4 provides for the Punishment for Money-Laundering 5.8

4 ATTACHMENT, ADJUDICATION AND CONFISCATION 5.9

Attachment of property involved in money-laundering [Section 5] 5.9

Adjudicating Authorities, composition, powers, etc. [Section 6] 5.10

Staff of Adjudicating Authorities [Section 7] 5.12

Adjudication [Section 8] 5.13

1) Serving of Notice by AO 5.13

2) Order Passed 5.13

3) Confirmation of Execution of Passed order 5.13

4) In case of Provisional order 5.14

Property involved be confiscated to the Central Government 5.14

Order of release 5.14

Passing of an appropriate order in case where trial cannot be concluded 5.14

Direction to CG by the Special Court 5.14

Vesting of property in Central Government [Section 9] 5.15

Management of properties confiscated under this Chapter [Section 10] 5.15

Power regarding summons, production of documents and evidence, 5.15
etc.[Section 11]
OBLIGATION OF BANKING COMPANIES, FINANCIAL INSTITUTIONS AND
5 INTERMEDIARIES 5.16
Reporting entity to maintain records 5.16

Access to information [Section 12A] 5.17

KOUSHIK MUKHESH ACA, CMA, B.COM 17

 Power of director to impose fine [Section 13] 5.18

No civil or criminal proceedings against reporting entity, its directors and 5.19

employees in certain cases [Section 14]

Procedure and manner of furnishing information by reporting entities 5.19
[Section 15]
6 SUMMONS, SEARCHES AND SEIZURES, ETC 5.20

Power of survey [Section 16] 5.20

Search and seizure [Section 17] 5.21

Search of persons [Section 18] 5.22

Power to arrest [Section 19] 5.24

Retention of property [Section 20] 5.24

Retention of records [Section 21] 5.25

Presumption as to records or property in certain cases [Section 22] 5.26

Presumption in inter-connected transactions [Section 23] 5.27

Burden of proof [Section 24] 5.27

7 APPELLATE TRIBUNAL 5.28

Hierarchy under the Prevention of Money Laundering Act, 2002 5.28

Establishment of Appellate Tribunal [Section 25] 5.28

Appeals to Appellate Tribunal [Section 26] 5.28

Procedures & Powers of the Appellate Tribunal [Section 35] 5.29

Distribution of business amongst Benches [Section 36] 5.30

Power of Chairman to transfer cases [Section 37] 5.30

Decision to be by majority [Section 38] 5.30

Right of appellant to take assistance of authorised representative and of 5.31

Government to appoint presenting officers [Section 39]

Members, etc., to be public servants [Section 40] 5.31

Civil court not to have jurisdiction [Section 41] 5.31

Appeal to High Court [Section 42] 5.31

(Continued)

KOUSHIK MUKHESH ACA, CMA, B.COM 18

8 SPECIAL COURTS 5.32

Offences to be cognizable and non-bailable [ Section 45] 5.33

Application of Code of Criminal Procedure, 1973 to proceedings before 5.34

Special Court [Section 46]

Appeal and revision [Section 47] 5.34

9 RECIPROCAL ARRANGEMENT FOR ASSISTANCE IN CERTAIN MATTERS 5.34

Definitions 5.34

Agreements with foreign countries [Section 56] 5.35

Letter of request to a contracting State in certain cases [Section 57] 5.36

Assistance to a contracting State in certain cases [Section 58] 5.37

Special Court to release the property [Section 58A] 5.37

Letter of request of a contracting State or authority for confiscation or 5.38

release the property [Section 58B]

Reciprocal arrangements for processes and assistance for 5.39

transfer of accused persons [Section 59]

Attachment, seizure and confiscation, etc., of property in a contracting State 5.40

or India [Section 60]
Procedure in respect of letter of request [Section 61] 5.41

10 RECOVERY OF FINE OR PENALTY 5.41

Punishment for vexatious search [Section 62] 5.41

Punishment for false information or failure to give information, etc. [Section 5.41
63]
Cognizance of offences [Section 64] 5.42

Code of Criminal Procedure, 1973 to apply [Section 65] 5.42

11 MISCELLANEOUS 5.43

Disclosure of Information [Section 66] 5.43

Bar of suits in civil courts [Section 67] 5.43

Notice, etc., not to be invalid on certain grounds [Section 68] 5.43

Recovery of fine or penalty [Section 69] 5.43

Offences by companies [Section 70] 5.44

Act to have overriding effect [Section 71] 5.44

Continuation of proceedings in the event of death or insolvency [Section 72] 5.44

KOUSHIK MUKHESH ACA, CMA, B.COM 19

 Power to make rules [Section 73] 5.45

Rules to be laid before Parliament [Section 74] 5.47

Power to remove difficulties [Section 75] 5.47

12 Annexures 5.48

Part - A ( Paragraphs 1 -27 ) 5.48

PART - B 5.58

PART - C 5.58

KOUSHIK MUKHESH ACA, CMA, B.COM 20

6. THE FOREIGN EXCHANGE MANAGEMENT ACT, 1999

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1 INTRODUCTION 6.2

Need for the Act 6.2

Broad Structure of FEMA 6.2

Salient provisions of FEMA 6.2

2 PREAMBLE,EXTENT APPLICATION AND COMMENCEMENT OF FEMA 6.3

1999
Preamble 6.3

Extent and Application [Sections 1] 6.3

Commencement 6.3

3 DEFINITIONS [SECTION 2] 6.4

4 IMPORTANT DEFINITIONS 6.7

Authorised Person 6.7

Capital and Current Account Transactions 6.7

Capital Account Transactions means 6.7

Current account transaction 6.8

‘Person’ and ‘Person resident in India 6.8

‘Service’ 6.8

Examples 6.8

5 REGULATION AND MANAGEMENT OF FOREIGN EXCHANGE 6.10

Dealing in foreign exchange, etc. [Section 3] 6.10

Holding of foreign exchange [Section 4] 6.11

6 CURRENT ACCOUNT TRANSACTIONS [SECTION 5] 6.11

I. SCHEDULE I 6.12

II. SCHEDULE II 6.13

III SCHEDULE III 6.14

1)Facilities for individuals 6.14

2)Facilities for persons other than individual 6.15

3). Procedure 6.15

KOUSHIK MUKHESH ACA, CMA, B.COM 21

7 CAPITAL ACCOUNT TRANSACTIONS [SECTION 6] 6.16

I. Permissible Transactions 6.18

SCHEDULE I 6.18

SCHEDULE II 6.19

II. Transactions with no restriction 6.19

III. Prohibited Transactions 6.19

CAPITAL TRANSACTIONS RELATED TO IMMOVABLE PROPERTY 6.21

(I) ACQUISITION AND TRANSFER OF IMMOVABLE PROPERTY IN INDIA 6.21

Acquisition and Transfer of Property in India by an 6.21

Indian Citizen resident outside India

Acquisition and Transfer of Property in India by a person of Indian origin. 6.21

Repatriation of sale proceeds. 6.22

II) ACQUISITION AND TRANSFER OF IMMOVABLE PROPERTY OUTSIDE 6.23
INDIA
Restriction on acquisition or transfer of immovable property outside India. 6.23

Acquisition and Transfer of Immovable Property outside India 6.23

Prohibition on acquisition or transfer of immovable property in India . 6.24

by citizens of certain countries

8 EXPORT OF GOODS AND SERVICES [SECTION 7] 6.24

Procedure: 6.24

1 Short title and commencement: 6.24

2 Definitions:- Some definitions: 6.25

3 Declaration of exports: 6.25

4 Exemptions: 6.26

5 Indication of importer-exporter code number: 6.27

6. Authority to whom declaration is to be furnished and the manner of 6.27

dealing with the declaration:

7 Evidence in support of declaration 6.28

8 Manner of payment of export value of goods 6.28

9 Period within which export value of goods/software/ services to be 6.28
realised
10 Submission of export documents: 6.29

KOUSHIK MUKHESH ACA, CMA, B.COM 22

 11 Transfer of documents: 6.29

12 Payment for the Export: 6.30

13 Certain Exports requiring prior approval 6.30

14 Delay in Receipt of Payment: 6.31

15 Advance payment against exports: 6.31

16 Issue of directions by Reserve Bank in certain cases 6.32

17 Project exports: 6.32

9 REALISATION AND REPATRIATION OF FOREIGN EXCHANGE [SECTION 6.33

8]
Foreign Exchange Management 6.33
(Realisation, repatriation and surrender of foreign exchange) Regulations,
2000
1 Duty of persons to realise foreign exchange due 6.33

2 Manner of Repatriation: 6.33

3 Period for surrender of realised foreign exchange 6.34

4 Period for surrender in certain cases: 6.34

5 Period for surrender of received/ realised/ unspent/ unused 6.34

foreign exchange by Resident individuals:

6 Exemption 6.34

Exemption from realisation and repatriation in certain cases [Section 9] 6.35

Limits for possession and retention of foreign currency or foreign coins: 6.35

10 AUTHORISED PERSON [SECTION 10] 6.36

Reserve Bank’s powers to issue directions to authorised person [Section 11] 6.37

Power of Reserve Bank to inspect authorised person [Section 12] 6.37

11 CONTRAVENTIONS AND PENALTIES IN BRIEF 6.38

Penalties [Section 13] 6.38

Enforcement of the orders of Adjudicating Authority [Section 14] 6.39

Power to recover arrears of penalty [Section 14A] 6.41

12 COMPOUNDING OF OFFENCES 6.42

Compounding Authority 6.42

13 ADJUDICATION AND APPEAL 6.42

Appointment of Adjudicating Authority [Section 16] 6.43

KOUSHIK MUKHESH ACA, CMA, B.COM 23

 Appeal to Special Director (Appeals) [Section 17] 6.43

Appellate Tribunal [Section 18] 6.44

Appeal to Appellate Tribunal [Section 19] 6.44

Right of appellant to take assistance of legal practitioner or chartered 6.45
accountant
and of Government, to appoint presenting officers [Section 32]

Civil court not to have jurisdiction [Section 34] 6.45

Appeal to High Court [Section 35] 6.45

14 DIRECTORATE OF ENFORCEMENT 6.46

Directorate of Enforcement [Section 36] 6.46

Power of search and seizure [Section 37] 6.46

Special provisions relating to assets held outside India in contravention 6.46

of section 4 [Section 37A]

Empowering other officers [Section 38] 6.47

15 MISCELLANEOUS 6.48

Presumption as to documents in certain cases [Section 39] 6.48

Suspension of operation of this Act [Section 40] 6.48

Power of Central Government to give directions [Section 41] 6.49

Contravention by companies [Section 42] 6.49

Death or insolvency in certain cases [Section 43] 6.50

Bar Legal proceedings [Section 44] 6.50

Repeal and saving [Section 49] 6.50

KOUSHIK MUKHESH ACA, CMA, B.COM 24

 7. Prohibition of Benami Transactions Act- 1988

S.NO Particulars Page No

1 INTRODUCTION 7.2

Structure of the Act 7.3

2 PRELIMINARY [Section 2] 7.3

Definitions 7.3

Examples of Benami Transactions: 7.7

Benamidar [Section 2(10)] 7.10

Fair Market Value [Section 2(16)] 7.10

3 PROHIBITION OF BENAMI TRANSACTIONS 7.15

Prohibition of benami transactions [Section 3] 7.15

Prohibition of the right to recover property held benami [Section 4] 7.15

Property held Benami liable to confiscation [Section 5] 7.16

Prohibition on retransfer of property by benamidar [Section 6] 7.16

4 AUTHORITIES 7.16

Adjudicating Authority [Section 7] 7.16

Composition of Authority [Section 8] 7.16

Qualifications for appointment of Chairperson and Members [Section 9] 7.16

Constitution of Benches of the Adjudicating Authority [Section 10] 7.17

Power of the Adjudicating Authority to regulate its own procedure [Section 7.17
11]
Term of Office of Chairperson and Members of Adjudicating Authority 7.17
[Section 12]
Terms and conditions of services of Chairperson and Members of 7.18

Adjudicating Authority [Section 13]

Removal of Chairperson and Members of Adjudicating Authority [Section 7.18
14]
Member to act as Chairperson in certain circumstances [Section 15] 7.18
Vacancies, etc., not to invalidate proceedings of Adjudicating Authority 7.19
[Section 16]
Officers and employees of Adjudicating Authority [Section 17] 7.19

Authorities and jurisdiction [Section 18] 7.19

KOUSHIK MUKHESH ACA, CMA, B.COM 25

 Powers of authorities [Section 19] 7.20

Certain officers to assist in inquiry, etc. [Section 20] 7.21

Power to call for information [Section 21] 7.21

Power to impound documents [Section 22] 7.22

Power of authority to conduct inquiry, etc. [Section 23] 7.22

5 ATTACHMENT, ADJUDICATION AND CONFISCATION 7.22

Notice and attachment of property involved in benami transaction [Section 7.23
24]
Manner of service of notice [Section 25] 7.23

Adjudication of benami property [Section 26] 7.24

i)Parties to be issued notice 7.24

ii) Time period for issue of Notice 7.24

iii)Further action by Adjudicating Authority after issue of notice 7.24

iv) Authorised Representative 7.25

Confiscation and vesting of benami property [Section 27] 7.26

Management of properties confiscated [Section 28] 7.27

Possession of the property [Section 29] 7.28

6 APPELLATE TRIBUNAL 7.29

Establishment of Appellate Tribunal [Section 30] 7.29

Composition, etc., of Appellate Tribunal [Section 31] 7.29

Qualifications for appointment of Chairperson and Members of Appellate 7.29
Tribunal
Terms and conditions of services of Chairperson and Members of Appellate 7.30
Tribunal
Term of office of Chairperson and Members [Section 34] 7.30
Removal of Chairperson and Member from office in certain 7.31
circumstances[Section 35]
Vacancies, etc., not to invalidate proceedings of Appellate Tribunal [Section 7.31
36]
Resignation and removal [Section 37] 7.32

Member to act as Chairperson in certain circumstances [Section 38] 7.32

Staff of Appellate Tribunal [Section 39] 7.32

Procedure and powers of Appellate Tribunal [Section 40] 7.32

Distribution of business amongst Benches of Appellate Tribunal [Section 41] 7.33

Power of Chairperson of Appellate Tribunal to transfer cases [Section 42] 7.33

KOUSHIK MUKHESH ACA, CMA, B.COM 26

 Decision to be by majority [Section 43] 7.33

Members, etc., to be public servants [Section 44] 7.34

Bar of jurisdiction of civil courts [Section 45] 7.34

Appeals to Appellate Tribunal [Section 46] 7.34

Rectification of mistakes [Section 47] 7.35

Right to representation (Section 48) 7.35

Appeal to High Court [Section 49] 7.36

7 SPECIAL COURTS 7.37

Special Courts [Section 50] 7.37

Application of Code of Criminal Procedure, 1973 to proceedings 7.37

before Special Court [Section 51]

Appeal and revision [Section 52] 7.38

8 OFFENCES AND PROSECUTION 7.38

Penalty for benami transaction [Section 53] 7.38

Penalty for false information [Section 54] 7.39

Previous sanction [Section 55] 7.39

9 MISCELLANEOUS 7.39

Repeal of provisions of certain Acts [Section 56] 7.39

Certain transfers to be null and void [Section 57] 7.39

Exemption [Section 58] 7.39

Power of Central Government to issue directions, etc. [Section 59] 7.39

Application of other laws not barred [Section 60] 7.40

Offences to be non-cognizable [Section 61] 7.40

Offences by companies [Section 62] 7.40

Notice, etc., not to be invalid on certain grounds [Section 63] 7.41

Protection of action taken in good faith [Section 64] 7.41

Transfer of pending cases [Section 65] 7.41

Proceedings, etc., against legal representative [Section 66] 7.41

Act to have overriding effect [Section 67] 7.42

Power to make rules [Section 68] 7.42

KOUSHIK MUKHESH ACA, CMA, B.COM 27

Laying of rules and notifications before Parliament [Section 69] 7.43

Power to remove difficulties [Section 70] 7.43

Transitional provision [Section 71] 7.43

Repeal and saving [Section 72] 7.44

KOUSHIK MUKHESH ACA, CMA, B.COM 28