Section 24 of FEMA, 1999: Vacancies (Omitted)
Section 24 of the Foreign Exchange Management Act, 1999 (FEMA) formerly governed vacancies in the office of the Chairperson or a Member of the Appellate Tribunal. It was omitted with effect from 26 May 2017 by section 165(g) of the Finance Act, 2017 (Act 7 of 2017).
What did Section 24 provide before its omission?
Before 26 May 2017, Section 24, titled "Vacancies", provided:
"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."
Historical wording, reproduced for reference only; not current law.
Meaning of the former provision
Under the earlier Section 24, a vacancy arising for a reason other than temporary absence was to be filled by a fresh appointment made by the Central Government in accordance with FEMA. It also allowed proceedings before the Appellate Tribunal to continue from the stage reached when the vacancy was filled, rather than requiring proceedings to start afresh merely because of that vacancy.
Effect of the Finance Act, 2017
Section 165 of the Finance Act, 2017 revised the appellate arrangements under FEMA. Clause (g) omitted Sections 24, 25 and 26. Consequently, the earlier statutory mechanism in Section 24 for filling Chairperson or Member vacancies ceased to apply from 26 May 2017. Questions about present-day appointments, vacancies or proceedings must be examined under the currently applicable tribunal framework and rules rather than the deleted text.
Related provisions and official legal sources
Chapter V of FEMA addresses adjudication and appeals. Section 18 concerns the Appellate Tribunal; Section 19 addresses appeals to it; Section 21 deals with qualifications for Special Director (Appeals); and Section 23 deals with the terms and conditions of service of Special Director (Appeals). The current text of FEMA and the amending legislation should be consulted together.
Official references: India Code - Foreign Exchange Management Act, 1999; IFSCA - FEMA consolidated Act (PDF); India Code - Central legislation. See also the FEMA Act overview.
Frequently asked questions
Is Section 24 of FEMA still in force?
No. It was omitted by section 165(g) of the Finance Act, 2017 with effect from 26 May 2017.
What was the purpose of Section 24?
It provided for filling non-temporary vacancies in the office of the Chairperson or a Member and for continuing pending Appellate Tribunal proceedings after the vacancy was filled.
Can the former Section 24 be relied upon today?
Not as a currently operative provision. It remains relevant when examining the historical law applicable to earlier events, subject to the applicable transitional and saving provisions.