The Foreign Exchange Management Act, 1999

Section 49 Repeal and saving. ACT NO. 42 OF 1999 [29th December, 1999.]

Chapter: VII · Miscellaneous
Text as on: As on 01 June 2026

49. Repeal and saving.—

(1) The Foreign Exchange Regulation Act, 1973 (46 of 1973) is hereby repealed and the Appellate Board constituted under sub-section (1) of section 52 of the said Act (hereinafter referred to as the repealed Act) shall stand dissolved.

(2) On the dissolution of the said Appellate Board, the person appointed as Chairman of the Appellate Board and every other person appointed as Member and holding office as such immediately before such date shall vacate their respective offices and no such Chairman or other person shall be entitled to claim any compensation for the premature termination of the term of his office or of any contract of service.

(3) Notwithstanding anything contained in any other law for the time being in force, no court shall take cognizance of an offence under the repealed Act and no adjudicating officer shall take notice of any contravention under section 51 of the repealed Act after the expiry of a period of two years from the date of the commencement of this Act.

(4) Subject to the provisions of sub-section (3) all offences committed under the repealed Act shall continue to be governed by the provisions of the repealed Act as if that Act had not been repealed.

(5) Notwithstanding such repeal,—

(a) anything done or any action taken or purported to have been done or taken including any rule, notification, inspection, order or notice made or issued or any appointment, confirmation or declaration made or any license, permission, authorization or exemption granted or any document or instrument executed or any direction given under the Act hereby repealed shall, in so far as it is not inconsistent with the provisions of this Act, be deemed to have been done or taken under the corresponding provisions of this Act;

(b) any appeal preferred to the Appellate Board under sub-section (2) of section 52 of the repealed Act but not disposed of before the commencement of this Act shall stand transferred to and shall disposed of by the Appellate Tribunal constituted under this Act;

(c) every appeal from any decision or order of the Appellate Board under sub-section (3) or sub-section (4) of section 52 of the repealed Act shall, if not filed before the commencement of this Act, be filled before the High Court within a period of sixty days of such commencement:

(6) Save as otherwise provided in sub-section (3), the mention of particular matters in sub-sections (2), (4) and (5) shall not be held to prejudice or affect the general application of section 6 of the General Clauses Act, 1897 (10 of 1897) with regard to the effect of repeal.

STATEMENT OF OBJECTS AND REASONS

The Foreign Exchange Regulation Act, 1973 was reviewed in 1993 and several amendments were enacted as part of the on-going process of economic liberalisation relating to foreign investments and foreign trade for closer interaction with the world economy. At that stage, the Central Government decided that a further review of the Foreign Exchange Regulation Act would be undertaken in the light of subsequent developments and experience in relation to foreign trade and investment. It was subsequently felt that a better course would be to repeal the existing Foreign Exchange Regulation Act and enact a new legislation. Reserve Bank of India was accordingly asked to undertake a fresh exercise and suggest a new legislation. A Task Force constituted for this purpose submitted its report in 1994 recommending substantial changes in the existing Act.

Significant developments have taken place since 1993 such as substantial increase in our foreign exchange reserves, growth in foreign trade, rationalisation of tariffs, current account convertibility, liberalisation of Indian investments abroad, increased access to external commercial borrowings by Indian corporates and participation of foreign institutional investors in our stock markets.

Keeping in view the changed environment, the Central Government has decided to introduce the Foreign Exchange Management Bill and repeal the Foreign Exchange Regulation Act, 1973. The provisions of the Bill aim at consolidating and amending the law relating to Foreign Exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange markets in India.

The notes on clauses explain in detail the various provisions contained in the Bill.

YASHWANT SINHA.

NEW DELHI; The 27th July, 1998.

49. Repeal and saving.—(1) The Foreign Exchange Regulation Act, 1973 (46 of 1973) is hereby
repealed and the Appellate Board constituted under sub-section (1) of section 52 of the said Act
(hereinafter referred to as the repealed Act) shall stand dissolved.

(2) On the dissolution of the said Appellate Board, the person appointed as Chairman of the Appellate
Board and every other person appointed as Member and holding office as such immediately before such
date shall vacate their respective offices and no such Chairman or other person shall be entitled to claim
any compensation for the premature termination of the term of his office or of any contract of service.

(3) Notwithstanding anything contained in any other law for the time being in force, no court shall take
cognizance of an offence under the repealed Act and no adjudicating officer shall take notice of any
contravention under section 51 of the repealed Act after the expiry of a period of two years from the date
of the commencement of this Act.

(4) Subject to the provisions of sub-section (3) all offences committed under the repealed Act shall
continue to be governed by the provisions of the repealed Act as if that Act had not been repealed.

(5) Notwithstanding such repeal,—

(a) anything done or any action taken or purported to have been done or taken including any rule,
    notification, inspection, order or notice made or issued or any appointment, confirmation or
    declaration made or any license, permission, authorization or exemption granted or any document or
    instrument executed or any direction given under the Act hereby repealed shall, in so far as it is not
    inconsistent with the provisions of this Act, be deemed to have been done or taken under the
    corresponding provisions of this Act;

(b) any appeal preferred to the Appellate Board under sub-section (2) of section 52 of the
    repealed Act but not disposed of before the commencement of this Act shall stand transferred to and
    shall disposed of by the Appellate Tribunal constituted under this Act;

(c) every appeal from any decision or order of the Appellate Board under sub-section (3) or
   sub-section (4) of section 52 of the repealed Act shall, if not filed before the commencement of this
   Act, be filled before the High Court within a period of sixty days of such commencement:

Provided that the High Court may entertain such appeal after the expiry of the said period of sixty
   days if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal within
   the said period.
   (6) Save as otherwise provided in sub-section (3), the mention of particular matters in
sub-sections (2), (4) and (5) shall not be held to prejudice or affect the general application of section 6 of
the General Clauses Act, 1897 (10 of 1897) with regard to the effect of repeal.

STATEMENT OF OBJECTS AND REASONS

The Foreign Exchange Regulation Act, 1973 was reviewed in 1993 and several amendments were
enacted as part of the on-going process of economic liberalisation relating to foreign investments and
foreign trade for closer interaction with the world economy. At that stage, the Central Government
decided that a further review of the Foreign Exchange Regulation Act would be undertaken in the light of
subsequent developments and experience in relation to foreign trade and investment. It was subsequently
felt that a better course would be to repeal the existing Foreign Exchange Regulation Act and enact a new
legislation. Reserve Bank of India was accordingly asked to undertake a fresh exercise and suggest a new
legislation. A Task Force constituted for this purpose submitted its report in 1994 recommending
substantial changes in the existing Act.

Significant developments have taken place since 1993 such as substantial increase in our foreign
exchange reserves, growth in foreign trade, rationalisation of tariffs, current account convertibility,
liberalisation of Indian investments abroad, increased access to external commercial borrowings by Indian
corporates and participation of foreign institutional investors in our stock markets.

Keeping in view the changed environment, the Central Government has decided to introduce the
Foreign Exchange Management Bill and repeal the Foreign Exchange Regulation Act, 1973. The
provisions of the Bill aim at consolidating and amending the law relating to Foreign Exchange with the
objective of facilitating external trade and payments and for promoting the orderly development and
maintenance of foreign exchange markets in India.

The notes on clauses explain in detail the various provisions contained in the Bill.

YASHWANT SINHA.

NEW DELHI;
The 27th July, 1998.