CURRENT AFFAIRS

Detailed explanation-1: -One has to complain to any other agency or Police first and then ED will investigate the matter and will identify the accused. The ED will investigate the matter and may attach the property of an accused person and also make an arrest and start proceeding with the violation of the provisions of FEMA and PMLA act.

Detailed explanation-2: -Explanation: Statement 1 is correct: Foreign Exchange Management Act, 1999 (FEMA) came into force by an act of Parliament. It was enacted on 29 December 1999. The Foreign Exchange Management Act officially came into force on 1st June 2000.

Detailed explanation-3: -Under FEMA, the Central Government has allowed the ED to conduct an investigation into any person or company accused of violating the terms of FEMA or the rules and regulations promulgated thereunder. The ED examines the violation in accordance with Section 13 of the Act.

Detailed explanation-4: -Contravention is a breach of the provisions of the Foreign Exchange Management Act (FEMA), 1999 and rules/ regulations/ notification/ orders/ directions/ circulars issued there under. Compounding refers to the process of voluntarily admitting the contravention, pleading guilty and seeking redressal.