Foreign Exchange & Trade•Ministry of Finance (Enforcement Directorate)•1973 → 1999

Foreign Exchange Regulation Act (FERA), 1973

Status: Replaced

Category: Foreign Trade & Currency

Successor: Foreign Exchange Management Act (FEMA), 1999

Executive Inquest Summary

“Shifted foreign exchange governance from criminalized control (FERA) to civil management and dispute settlement (FEMA).”

1. Original Objective & Statutory Design

Instituted in 1973 by the Ministry of Finance (Enforcement Directorate) to govern foreign exchange & trade. Aimed at addressing core governance challenges and structural priorities of its era.

2. Implementation Architecture & Frontline Delivery

Administered under Ministry of Finance (Enforcement Directorate) through federal coordination, state-level departments, and executive oversight mechanisms.

3. Rationale for Action, Repeal or Replacement

Draconian legislation where forex violations were treated as non-bailable criminal offenses; severely impeded foreign direct investment (FDI).

Subsequent Legal or Administrative Framework:

Foreign Exchange Management Act (FEMA), 1999

4. Empirical Evidence & Official Documentation

Official parliamentary records, ministry gazette notifications, and statutory review committee assessments concerning Foreign Exchange Regulation Act (FERA), 1973.

Institutional Memory & Enduring Lessons

What Should Be Retained, Redesigned, or Revived?

Status: Replaced. Replacement: Foreign Exchange Management Act (FEMA), 1999. Demonstrates the systemic lifecycle of public policy in India—highlighting how changes in state capacity, federal dynamics, and technological capability render legacy frameworks obsolete or require complete legislative overhaul.

Verified Administrative & Evaluation Sources

Official Gazette of India, Ministry of Finance (Enforcement Directorate)
Parliamentary Standing Committee Reports (1999)
Law Commission of India & Ministry Transition Notes