Centre may give more teeth to FEMA

New Delhi: The Narendra Modi government is mulling changes in the existing Foreign Exchange Management Act (FEMA) to give it more teeth so that it will act as a deterrent for those stashing black money abroad. The move is significant in the backdrop of the government already having constituted a SIT to help bring back black money from abroad. Under the amended law, the government plans to allow initiation of property attachment proceedings against those who fall foul of the Act, sources said. At present, those violating FEMA can get away by paying fines. A prison term varying in duration is in store only for those who fail to cough up the fine  within 90 days of the date of notice. “Amendments in the FEMA will help authorities, including SIT, in initiating action against those who stash illegal money in foreign banks,” a source said.