FEMA penalty for receiving foreign payment outside authorised channels, upheld to the Supreme Court
The Enforcement Directorate's Cochin office took action under Section 3(c) of FEMA against two men for receiving payment otherwise than through an authorised person. The Kerala High Court rejected their appeals in March 2025 and their review petitions in November 2025. The Supreme Court refused to interfere on 6 February 2026 and dismissed their petitions.
This page records what the cited court, tribunal and government records say happened. Findings belong to the court or authority that made them; this register adds none of its own. Names of private individuals are withheld unless a naming gate clears them.
How we verify →The FEMA penalty stands; the Supreme Court dismissed the special leave petitions on 6 February 2026.
What happened
The High Court recorded that the FEMA appeals before it had arisen from the orders of the Cochin enforcement office and the Chennai appellate authority, and that they were filed under the FEMA appeal provision.
The High Court said the dispute concerned only action under Section 3(c) of FEMA, and it rejected the review petitions, holding there was no error apparent on the face of the record.
The Supreme Court condoned the delay in filing, found no reason to interfere with the High Court's orders, and dismissed the special leave petitions.
What the record says
“had arisen from the orders rendered by the Assistant Director of Enforcement, Foreign Exchange Management Act, Cochin.”
Kerala High Court review order in RP Nos. 1389/2025 and 1406/2025 — read the full text
A peaceful economic act
Receiving money outside the authorised-dealer system is a consensual transfer between willing parties; the record shows no violence, fraud victim, or coercion.
What we could not confirm
The exact foreign currency amounts and the place of receipt are not visible in the excerpts opened; the March 2025 common judgment (MFA(FEMA) Nos. 3-4/2024) could not be opened. No fraud, violence or other victim element appears in the portions reviewed.