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@article{190135,
        author = {S. BABU and T. Vaishali},
        title = {Foreign Exchange Violations as Economic Crimes: A Critical Study of Enforcement and Regulatory Gaps in FEMA 1999},
        journal = {International Journal of Innovative Research in Technology},
        year = {2026},
        volume = {12},
        number = {8},
        pages = {436-444},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=190135},
        abstract = {Foreign exchange violations under the Foreign Exchange Management Act (FEMA), 1999, represent a critical enforcement challenge in India's economic crime prevention framework. This research examines structural enforcement gaps that enable violations to evade criminal accountability despite substantial investigative activity by the Directorate of Enforcement (ED). Through analysis of enforcement statistics from FY 2014-15 to FY 2021-22, appellate jurisprudence, and case studies of high-profile violations, this paper demonstrates that while the ED generated Rs. 6,376.51 crore in penalties and seized Rs. 7,066 crores in assets, the criminal conviction rate remained at 0.5% vastly below the 92% PMLA conviction rate during the same period. The paper analyzes the dual nature of FEMA violations (civil penalties and criminal prosecution), jurisdictional overlaps between FEMA, PMLA, and Bharatiya Nyaya Sanhita (BNS) 2023 frameworks, and predicate criminal conduct prosecutable under BNS provisions (Sections 318, 319, 336, 61(2), and 316). Through examination of regulatory gaps, definitional ambiguities, inter-agency coordination failures, procedural constraints, and technological inadequacies the paper identifies mechanisms enabling sophisticated foreign exchange crimes including round-tripping schemes, hawala transactions, and unauthorized forex trading platforms to escape criminal accountability. The research concludes that meaningful enforcement enhancement requires: statutory clarification of key concepts, consolidated inter-agency coordination frameworks, expansion of criminal prosecution mechanisms, and investment in technology-enabled detection systems.},
        keywords = {Criminal liability, Economic Crimes, Foreign Exchange Violations, FEMA 1999, Money Laundering, Proportionality Doctrine, Regulatory Enforcement.},
        month = {January},
        }