Section 28 of FEMA : Section 28: Procedure And Powers Of Appellate Tribunal And Special Director (Appeals)

Explanation using Example

Imagine a business owner in India who has been penalized by the Reserve Bank of India (RBI) for not adhering to certain foreign exchange regulations. The business owner believes the penalty is unjust and decides to appeal the decision. They take their case to the Appellate Tribunal, which is established under the Foreign Exchange Management Act (FEMA), 1999.

In this scenario, Section 28 of FEMA comes into play. The Tribunal hears the case, and during the proceedings, it operates not strictly by the book of the Code of Civil Procedure, but by principles of natural justice, ensuring fairness and equity in its decision-making process.

The Tribunal uses its power to summon witnesses, require the production of documents, and take evidence on affidavits, just like a civil court might. If necessary, they can also review their own decisions or set aside an order if they find it was made in error or if new evidence comes to light.

Ultimately, if the Tribunal rules in favor of the business owner, their order can be executed as if it were a decree from a civil court, ensuring that the business owner receives relief from the penalty initially imposed by the RBI.