Govt Sets ₹2–10 Cr FEMA Adjudication Limit for Addl. & Joint Directors

Notification No. S.O. 1397(E); Dated: 18.03.2026

The Central Government has amended the monetary limits for adjudication under the Foreign Exchange Management Act (FEMA) by revising the allocation of cases among adjudicating authorities.

1. Rationalisation of Adjudication Thresholds

The amendment substitutes the entries against serial numbers 3 and 4 in the existing table governing jurisdiction of adjudicating officers.

Under the revised framework:

• Cases involving amounts exceeding ₹2 crore but not exceeding ₹10 crore are now assignable to both:

  1. Additional Director of Enforcement, and
  2. Joint Director of Enforcement

2. Removal of Earlier Distinction

Previously, the adjudication framework differentiated between:

• ₹2 crore to ₹5 crore, and
• ₹5 crore to ₹10 crore

This distinction has now been removed, and both ranges have been consolidated into a single unified slab of ₹2 crore to ₹10 crore.

3. Implications of the Amendment

The revised structure:

• Provides greater flexibility in allocation of cases
• Enables efficient distribution of workload among enforcement authorities
• Simplifies the adjudication framework under FEMA

4. Objective of the Amendment

The amendment aims to:

• Streamline adjudication processes
• Improve administrative efficiency in handling FEMA cases
• Ensure optimal utilisation of enforcement resources

Overall, the rationalisation enhances operational effectiveness in the adjudication of foreign exchange violations.

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