Section 26 of FEMA Act 1999: Member to Act as Chairperson in Certain Circumstances
Section 26 of the Foreign Exchange Management Act, 1999 formerly provided a temporary arrangement for the senior-most Member to act as, or discharge the functions of, the Chairperson of the Appellate Tribunal. The provision is no longer operative.
What did Section 26 provide?
Before its omission, Section 26 dealt with two temporary situations involving the office of the Chairperson of the Appellate Tribunal: a vacancy in that office, and the inability of the Chairperson to discharge functions because of absence, illness or another cause.
Historical text of Section 26 before omission
Member to act as Chairperson in certain circumstances
26. (1) In the event of the occurrence of any vacancy in the office of the Chairperson by reason of his death, resignation or otherwise, the senior-most Member shall act as the Chairperson until the date on which a new Chairperson, appointed in accordance with the provisions of this Act to fill such vacancy, enters upon his office.
(2) When the Chairperson is unable to discharge his functions owing to absence, illness or any other cause, the senior-most Member shall discharge the functions of the Chairperson until the date on which the Chairperson resumes his duties.
The text above is retained for historical reference. For the current statutory position, consult the updated official text of FEMA.
Effect of the 2017 amendment
The Finance Act, 2017 restructured the appellate framework referred to in FEMA. As part of those amendments, Section 26 was omitted with effect from 26 May 2017. The present FEMA text accordingly shows the heading of Section 26 with an omission note rather than the former substantive provisions.
Meaning of important terms
FEMA: The Foreign Exchange Management Act, 1999 (Act 42 of 1999) is the central law governing foreign exchange management in India. It came into force on 1 June 2000.
Appellate Tribunal: Section 2(b), as amended, defines "Appellate Tribunal" by reference to the Appellate Tribunal referred to in Section 18 of FEMA.
Chairperson: Section 2(f) defines "Chairperson" as the Chairperson of the Appellate Tribunal.
Why the historical provision still matters
The former text may remain relevant when reading older orders, proceedings, commentaries or documents concerning events that occurred while Section 26 was in force. For any present-day legal issue, however, the current amended Act and the applicable tribunal framework should be checked rather than relying on the pre-26 May 2017 wording.
Legal status checked: 27 September 2026. This page is informational and should be read with the latest official statutory text and amendments.