State the penalties prescribed under FEMA for contravention of its provisions.

(i) that the payment for the goods or -software is made otherwise than in the
specified manner; or
(ii) that the payment is delayed beyond the period specified under these Regula
tions; or
(iii) that the proceeds of sale of the goods or software exported do not represent the full export value of the goods or software subject to such deductions, if any, as may be allowed by the Reserve Bank or, subject to the directions of the Reserve Bank, by an authorised dealer.
Exemption from Realisation and Repatriation (Section 9)
Section 9 seeks to provide for exemption from the provisions of section 4 and section
8 in respect of the following transactions:
(a) Possession of foreign currency or foreign coins by any person upto such limit
as the Reserve Bank may specify;
(b) foreign currency account held or operated by such person or class of persons
and the limit upto which the Reserve Bank may specify;
(c) foreign exchange acquired or received before July 8, 1947 or any income
arising or accruing thereon which is held outside India by any person in
pursuance of a general or special permission granted by the Reserve Bank;
(d) foreign exchange held by a person resident in India up to such limit as the Reserve Bank may specify, if such foreign exchange was acquired by way of gift or inheritance from a person referred to in clause (c), including any income arising therefrom;
(e) foreign exchange acquired from employment, business, trade, vocation, services, honorarium, gifts, inheritance or any other legitimate means upto such limit as the Reserve Bank may specify; and
(I> such other receipts in foreign exchange as the Reserve Bank ma i specify.

Penalties

~ 24. State the penalties prescribed under FEMA for contravention of its provisions.

Jtns.

Penalty (Section 13)
If any person contravenes any provision of the FEMA, 1999 or any rule, regulation, notification, direction or order issued in exercise of the powers under FEMA, he shall be liable to penalty up to thrice the sum involved in such contravention where such amount is quantifiable, or up to two lakh of rupees where the amount is not quantifiable. In case contravention is a continuing one, then a further fine of up to Rs. 5,000 per day till the contravention continues, may be levied (Section 13). However, almost all offences under the FEMA are compoundable.
The Government will appoint Adjudicating Authorities to hord enquiry for contravention of any provisions of the FEMA or FEMA Rules (Section 16). Again, Section 13 provides that any adjudicating authority may, in addition to