Question

'FERA law' is related with which of the following ?

• A. Child labour
• B. Trafficking
• C. Prostitution
• D. Black money

Hint:

Remember the full forms of important legal acronyms. FERA (Foreign Exchange Regulation Act) immediately points towards its connection with currency and economic offenses, distinguishing it from laws related to social crimes like trafficking or child labour.

Answer 1

The Correct Option is D

Step 1: Understanding the Concept:
The question asks about the subject matter of the 'FERA' law in India.
Step 2: Detailed Explanation:
FERA stands for the Foreign Exchange Regulation Act. It was a law passed in India in 1973.
- The primary purpose of FERA was to impose very strict regulations on all transactions involving foreign exchange, securities, and property held abroad.
- Due to its stringent and restrictive nature, it was a powerful tool used by enforcement agencies to curb illegal activities related to foreign currency, such as hawala transactions and the stashing of unaccounted wealth, commonly known as black money, in foreign countries.
- FERA was repealed in 1999 and replaced by the more liberal Foreign Exchange Management Act (FEMA).
Step 3: Final Answer:
The FERA law was primarily related to the regulation of foreign exchange and was used to combat economic offenses, including the generation and transfer of black money.