ED to close legacy FERA cases by early 2026

The ED is identifying around 400 to 500 FERA cases where adjudication proceedings before various courts can be fast-tracked for closure. Many of these cases involve accused persons who have either died or become untraceable, or where the assets under investigation have already been liquidated or no longer exist

The Enforcement Directorate (ED) has initiated a major exercise to bring long-pending cases registered under the repealed Foreign Exchange Regulation Act (FERA) to a conclusion, with a target to complete the process by the first quarter of 2026, officials said.

FERA, a stringent criminal law governing foreign exchange violations, was replaced by the Foreign Exchange Management Act (FEMA) in 1999 and formally repealed in 1998 as part of India’s economic liberalisation. Despite this, hundreds of cases registered under the older law have remained pending for over two decades.

According to officials, the ED is identifying around 400 to 500 FERA cases where adjudication proceedings before various courts can be fast-tracked for closure. Many of these cases involve accused persons who have either died or become untraceable, or where the assets under investigation have already been liquidated or no longer exist.

The objective is to complete the exercise within the next few months, with early 2026 set as the immediate deadline. The last show-cause notices under FERA were issued in May 2002.

ED Director Rahul Navin, while addressing officers at a recent conference in Gujarat, directed officials to prioritise the “fast-tracking” of old FERA adjudication matters. He stressed the need for completing the full lifecycle of cases that have been pending across multiple legal forums for years.

Officials said the move would finally end prolonged litigation and redundancy linked to a law that predates India’s liberalised economic regime. The ED was originally set up in 1956 under the Department of Economic Affairs to enforce FERA provisions.

Unlike FERA, which treated most violations as criminal offences, FEMA focuses on managing foreign exchange and primarily deals with civil violations, reflecting a significant shift in India’s regulatory approach.