Ed Seeks Details On Summons To Nris: Fera Case

The Enforcement Directorate (ED) has sought clarification from the ministry of law and the Attorney General of India as to whether non-resident Indians (NRIs) can be summoned to the country for questioning in alleged cases of Fera (Foreign Exchange Regulation Act) violation.

A clarification from the law ministry has become necessary since many Fera violation cases are pending a final decision on account of non-resident Indians refusing to respond to summons issued by the enforcement directorate.

This issue cropped up after Manu Chhabria, chairman of Shaw Wallace, declined to respond to summon notices issued by the enforcement directorate regarding an alleged case of Fera violation by the company.

 

The enforcement directorate had already written to the office of the Attorney General about two months back seeking clarification on this particular issue.

A reminder was also sent a week back to the law ministry to review Fera in this connection.

A senior official with the Enforcement Directorate told Business Standard, "I don't know why there is a confusion about whether non-resident Indians can be brought back for questioning.

Section 1(iii) of the Fera clearly states that the Act applies to all citizens outside India. We have asked for clarification on this matter from the Law ministry and have also sent reminders to it."

However, the secretary, ministry of law, denied having received any such letter from the Enforcement Directorate.

He said, "I am not aware of any such letter. However, before an non-resident Indians can be brought into the country for questioning, many matters need to be considered, especially the extent of offence committed by him."