(a) the existing mechanism and action taken by the Government in coordination with
State Governments to stop illegal money flow from foreign countries;
(b) the details of such cases registered during the last three years; and
(c) whether the Government has any proposal to amend laws to deal with/punish the
culprits involved in illegal money transfer in a more stringent manner?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI S.S. PALANIMANICKAM)
(a) & (b) : The Directorate of Enforcement has not registered any case relating to illegal
money flow from Foreign Countries in coordination with State Government. However, during the
last three years, i.e., 2009-10, 2010-11 & 2011-12, Directorate of Enforcement, in pursuance
to its own investigations has issued Show Cause Notices under Foreign Exchange Management Act,
1999(FEMA) in 220 cases relating to illegal transfer of funds into India through unauthorized
channels.
(c): The existing provisions of FEMA are considered to-be adequate and appropriate on the
quantum of penalty/punishment.