ED Fast-Tracks Closure of Decades-Old FERA Cases

The Enforcement Directorate is expediting the closure of cases under the Foreign Exchange Regulation Act, replaced by the Foreign Exchange Management Act over two decades ago. Aiming to resolve around 400-500 cases, ED seeks to complete this by early 2026, ending prolonged litigation.

The Enforcement Directorate (ED) is moving swiftly to conclude long-pending cases registered under the Foreign Exchange Regulation Act (FERA), a law repealed more than 25 years ago. FERA, loaded with criminal provisions, was replaced by the civil Foreign Exchange Management Act (FEMA) in June 2000.

ED officials have been tasked with identifying 400-500 cases that can be expedited in various courts, primarily because those involved have either passed away, are untraceable, or the assets in question no longer exist. The agency aims to complete this effort by the first quarter of 2026, with ED Director Rahul Navin emphasizing the importance of concluding these longstanding cases.

The closure of FERA cases is expected to resolve more than two decades of litigation, as the original law—notably aggressive in its enforcement—has its roots in legislation dating back to 1947. Repealed and replaced as part of India's economic liberalization, the current FEMA framework emphasizes the management rather than regulation of foreign exchange.

(With inputs from agencies.)