Foreign Exchange Management Act, 1999

Section 36 FEMA Act 1999 - Directorate of Enforcement

Section 36 of the Foreign Exchange Management Act, 1999 establishes the Directorate of Enforcement for the purposes of FEMA and provides the statutory framework for its officers, appointments and exercise of powers.

In simple terms: Section 36 creates the Directorate of Enforcement under FEMA, permits appointment of Enforcement officers, and provides that those officers may exercise FEMA powers and duties subject to conditions and limitations imposed by the Central Government.

Text and meaning of Section 36

Section 36 appears in Chapter VI of FEMA, titled Directorate of Enforcement. The provision has three sub-sections dealing with establishment of the Directorate, appointment of officers below a specified rank, and exercise of statutory powers by Enforcement officers.

Section 36(1) - Establishment of the Directorate

The Central Government shall establish a Directorate of Enforcement with a Director and such other officers or classes of officers as it considers fit. These officers are called officers of Enforcement for the purposes of FEMA.

Section 36(2) - Appointment of officers

In addition to the Central Government's power under sub-section (1), it may authorise the Director of Enforcement, Additional Director of Enforcement, Special Director of Enforcement or Deputy Director of Enforcement to appoint officers of Enforcement below the rank of Assistant Director of Enforcement.

Section 36(3) - Exercise of powers and duties

An officer of Enforcement may exercise the powers and discharge the duties conferred or imposed under FEMA, subject to any conditions and limitations imposed by the Central Government.

What is the Directorate of Enforcement under FEMA?

The Directorate of Enforcement, commonly known as the ED, is a Department of Revenue organisation under the Ministry of Finance. In relation to FEMA, its official functions include investigation of suspected contraventions of foreign exchange laws and regulations and action under the statutory enforcement framework.

Section 36 should be read with the provisions that confer particular powers. For example, Section 37 of FEMA deals with powers of search, seizure and related investigation, while Section 38 concerns empowering other officers.

Why Section 36 is important

Section 36 is the institutional provision behind FEMA enforcement. It identifies the Directorate and its officers as the enforcement machinery for the Act, creates a statutory route for appointment of officers, and makes the exercise of their FEMA powers subject to the statutory scheme and any applicable conditions or limitations.

Related FEMA provisions

Chapter VI begins with Section 36. Readers dealing with an investigation or enforcement proceeding should also examine the specific substantive and procedural provisions applicable to the transaction or alleged contravention, rather than treating Section 36 itself as an independent source of every investigative power.

Legal note: This page is an explanatory guide to Section 36. For the authoritative and updated statutory text, refer to India Code and official Government sources.