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FEMA - Highlights / Catch Notes

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Reasonable opportunity of being heard cannot be restricted to ...


Reasonable opportunity of being heard extends beyond show cause notice. Grave consequences mandate full natural justice compliance.

Case Laws     FEMA

July 30, 2024

Reasonable opportunity of being heard cannot be restricted to issuance of show cause notice. When consequences are grave, principles of natural justice must be complied with in entirety. Non-affording of personal hearing to petitioner prior to suspension of registration under Foreign Contribution (Regulation) Act, 2010 for alleged mismanagement of foreign contributors' funds has rendered order unsustainable, leading to its obliteration. Personal hearing was required due to dire civil and economic consequences of cancellation u/s 14(3) prohibiting registration for three years.

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