Revised FEMA Adjudication Thresholds: Expanded Monetary Jurisdiction for ED Officers

The Central Government has significantly revised the adjudication thresholds under the Foreign Exchange Management Act, 1999, reshaping which officers of the Directorate of Enforcement will handle specified ranges of monetary contraventions. Through a Notification dated 18 March 2026, the Ministry of Finance has amended the earlier framework laid down by Notification S.O. 2565(E), dated 30 September 2014, thereby expanding the jurisdiction of certain categories of Enforcement Directorate officers.

This development directly affects how contraventions involving amounts above ₹2 crore and up to ₹10 crore will be distributed among adjudicating authorities under FEMA. The move is aimed at streamlining case allocation, enhancing administrative efficiency, and ensuring more flexible deployment of senior officers within the Directorate of Enforcement.

Statutory Basis of the Amendment

The latest modification has been issued under a combined reading of powers drawn from both the earlier Foreign Exchange Regulation Act, 1973 and the Foreign Exchange Management Act, 1999. Specifically, the Notification dated 18 March 2026 invokes:

  • section 50 read with sub-sections (1) and (3) of section 4 of the Foreign Exchange Regulation Act, 1973 (46 of 1973); and
  • sub-sections (3), (4) and (5) of section 49 of the Foreign Exchange Management Act, 1999 (42 of 1999).

These enabling provisions empower the Central Government to issue and amend notifications relating to adjudication and transitional matters, particularly those concerning the jurisdiction and functioning of officers under the Directorate of Enforcement.

In practical terms, the 2026 notification amends the principal notification S.O. 2565(E), dated 30 September 2014, which originally set out the monetary limits for various Enforcement Directorate designations acting as adjudicating authorities under FEMA.

Core Change: Monetary Limits for Additional and Joint Directors

Earlier Position Under 2014 Framework

Under the original table notified in S.O. 2565(E) dated 30 September 2014, the monetary limits for adjudication by specific officers of the Directorate of Enforcement were as follows:

  • Director of Enforcement

    • Jurisdiction: Cases involving amounts exceeding ₹10 crore

  • Special Director of Enforcement

    • Jurisdiction: Cases involving amounts exceeding ₹10 crore

  • Additional Director of Enforcement

    • Jurisdiction: Cases involving amounts in excess of ₹5 crore but not exceeding ₹10 crore

  • Joint Director of Enforcement

    • Jurisdiction: Cases involving amounts in excess of ₹2 crore but not exceeding ₹5 crore

  • Deputy Director of Enforcement

    • Jurisdiction: Cases involving amounts in excess of ₹1 crore but not exceeding ₹2 crore

  • Assistant Director of Enforcement

    • Jurisdiction: Cases involving amounts not exceeding ₹1 crore

Subsequently, a Corrigendum dated 14 November 2014 (S.O. 2918(E)) clarified serial numbering in the table, but did not alter the substantive monetary limits or jurisdictional allocation, except correcting the sequence of entries for Deputy Director and Assistant Director.

Revised Position Under Notification Dated 18 March 2026

The 18 March 2026 Notification specifically amends the entries corresponding to serial numbers 3 and 4 of the original 2014 table, which relate to the Additional Director of Enforcement and Joint Director of Enforcement.

The substituted entries now provide the following:

“Cases involving an amount or value in excess of rupees two crore but not exceeding rupees ten crore”

This wording is applied identically to both:

  • Serial No. 3 – Additional Director of Enforcement; and
  • Serial No. 4 – Joint Director of Enforcement.

As a result: