Enforcement Directorate. file | Photo courtesy: The Hindu
The Enforcement Directorate (ED) has decided to bring to a conclusion the cases registered under the Foreign Exchange Regulation Act (FERA), which the country repealed more than 25 years ago in 1998.
FERA, consisting of criminal sections of 1973, was replaced in June 2000 by the Foreign Exchange Management Act (FEMA) of 1999, a civil law.
officials told PTI The federal probe agency has started identifying around 400-500 cases in which judicial proceedings pending before various courts under FERA may be closed speedily, as the persons under prosecution have either died or gone missing, or the assets in question have been liquidated or have ceased to exist.
Officials said the goal is to complete the exercise in the next few months – the first quarter of 2026 is the immediate deadline.
The last show cause notices under FERA were issued in May 2002.
ED Director Rahul Naveen, during a conference of agency officials held in Gujarat recently, had reiterated his instructions for “fast-tracking” of old FERA adjudication cases as he stressed on “completing the lifecycle” of all pending cases at various forums.
Officials said closing the FERA cases in the “next few months” will end a legacy of litigation and overreach that has lasted more than two decades.
He said that there was an incarnation of FERA even before 1973 which was first introduced in 1947.
The Central Government, in 1956, had set up the ED as an “enforcement unit” under the Department of Economic Affairs (DEA) to handle violations and cases registered under FERA of 1947. This law was then repealed and replaced by FERA of 1973 and later by the FEMA law of 1999 as part of India’s economic liberalization policy.
FEMA focuses more on the management of foreign exchange rather than its regulation and control (like FERA).
Most violations under FEMA are considered civil offenses rather than criminal proceedings under FERA.
published – December 14, 2025 06:53 pm IST