Section 25 FEMA Act 1999 - Resignation and Removal Omitted
Section 25 of the Foreign Exchange Management Act, 1999 originally dealt with the resignation and removal of the Chairperson or a Member of the Appellate Tribunal. The provision is no longer operative.
What is Section 25 of FEMA?
Section 25 formed part of Chapter V of the Foreign Exchange Management Act, 1999, dealing with adjudication and appeals. Before its omission, the section prescribed how the Chairperson or a Member could resign and the safeguards governing removal from office.
Why was Section 25 omitted?
The Finance Act, 2017 reorganised the tribunal framework applicable to a number of central laws. As part of the amendments made to FEMA by Section 165 of that Act, several provisions concerning the earlier Appellate Tribunal structure were omitted or modified. Section 25 was one of the provisions omitted with effect from 26 May 2017.
For the present text of FEMA, an omitted section is no longer an operative provision of the Act from the effective date of omission. The earlier text remains relevant for understanding the historical law and may matter when examining legal events arising during the period in which that provision was in force.
Earlier text of Section 25 before omission
The following is the substance of Section 25 as it stood before 26 May 2017:
Section 25(1) - Resignation
The Chairperson or a Member could resign by giving a written notice addressed to the Central Government.
Unless the Central Government permitted earlier relinquishment, the office-holder was required to continue until the earliest of: three months from receipt of the resignation notice, the successor entering office, or expiry of the existing term.
Section 25(2) - Removal
The Chairperson or a Member could not be removed except by an order of the Central Government on the ground of proved misbehaviour or incapacity after an enquiry by a person appointed by the President. The concerned office-holder had to be informed of the charges and given a reasonable opportunity of being heard.
Legal effect for readers today
A person researching the present FEMA framework should read Section 25 as omitted, not as a current procedure for resignation or removal. Where an older order, judgment, pleading or transaction refers to Section 25, the date of the relevant event should be checked because the former provision remained in force until 25 May 2017 and was omitted from 26 May 2017.
Official legal sources
For the consolidated statutory text, amendments and current FEMA framework, readers should verify the latest official material published by the Government of India and the Reserve Bank of India.
This page explains the statutory position for general legal information. For a matter involving an earlier appointment, resignation, removal or tribunal proceeding, the law applicable on the relevant date should be examined.