FEMA Appellate Tribunal Vacant For 2 Years : Supreme Court Warns All Proceedings Might Require To Be Stayed Till Vacancies Are Filled

The bench of Justices S. K. Kaul and M. M. Sundresh was hearing a Special Leave Petition against the February 25, 2022 decision of a division bench of the Telangana High Court in a writ appeal whereby the division bench had set aside the order dated 11.02.2022 passed by the Single Judge allowing the provisional release of a sum seized under FEMA. Noting that the seizure was confirmed by the competent authority under section 37A of the FEMA, the division bench observed that the aforesaid statutory provision provides for a remedy of appeal and therefore, the respondent No.1/writ petitioner shall certainly be free to prefer an appeal or to avail the other remedies available under the law against the order of the competent authority.

On Friday, the bench of Justices Kaul and Sundresh noted that the, "Learned counsel for the petitioner points that no purpose is being subserved by relegating the petitioner to a Tribunal as there is no Tribunal for the last two years."

The bench then observed, "The aforesaid being the position, not only in this matter but in different matters, the result is the parties are compelled to approach the High Courts in the absence of the FEMA Appellate Tribunal. Once the Tribunal, as envisaged, not filling the vacancies for a period of two years frustrates the judicial remedy. Thus, it may require an order that till the Tribunal vacancies are filled up, proceedings across the Board should be kept in abeyance to obviate the possibility of the High Courts being flooded with such an issue."

With the above observations, the bench issued notice on the special leave petition as well as on the prayer for interim relief returnable on 06.05.2022

It may be noted that on March 24, while hearing another matter relating to PMLA Appellate , the bench led by Justice Kaul had warned that it will stay all proceedings unless the Central Government fills up the vacancies.

Few weeks back, a bench led by Justice AM Khanwilkar had also expressed concerns at the unfilled vacancies in tribunals.