(a) whether there is a large scale outflow of
foreign exchange and FERA violations
due to insertion of advertisements by Indian exporters in foreign T.V. channels;
(b) if so, the number of FERA violation cases registered
against these exporters;
(c) whether the Government propose to formulate a
comprehensive policy regarding insertion of advertisements in foreign T.V. channels by the Indian exporters; and
(d)if so, the details thereof?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI GINGEE N. RAMACHANDRAN)
(a) & (b) The Enforcement Directorate has conducted
investigations into the allegations of violation of
provision of Foreign Exchange Regulation Act (FERA),
1973 by the Indian Agents of some of the Foreign T.V.
Channels and certain Export Houses in respect of telecast
of advertisement and remittance of advertisement charges.
Show cause notices have been issued to such agents and
exporters in 123 cases of violation of provisions of FERA.
Action in accordance with provisions of FERA read with
Exchange Control Manual of RBI have been initiated against
them.
(c) & (d) Remittances on account of advertisements on foreign
TV channels by a person resident in India can be allowed
by authorised dealers in foreign exchange in terms of item 13
of Schedule III of the Foreign Exchange Management
(Current Account Transactions) Rules,2000. Also remittances
on account of advertisements on foreign TV channels made out
of Exchange Earner`s Foreign Currency (EEFC)/ Resident Foreign
Currency (RFC) Accounts can be permitted by the Authorised
Dealers. Only in respect of a person whose export earnings
are less than Rs.10 lakh during each of the preceding
two years, prior permission of Reserve Bank of India is
required for the remittance.