INDIA Law and Practice Contributed by: Ayush Mehrotra, Upkar Agrawal and Varsha Goel, Khaitan and Co
• Ministry of External Affairs (MEA): Issues UNSCA Orders implementing UNSC resolutions. The MEA also serves as the nodal point for communication with UNSC sanctions committees. • Ministry of Home Affairs (MHA): Administers coun - ter-terrorism sanctions under the UAPA through the Counter Terrorism and Counter-Radicalisation (CTCR) Division. The National Investigation Agency (NIA) operates under the aegis of MHA and is responsible for the investigations and enforcement. • Central Board of Indirect Taxes and Customs (CBIC): Enforces trade sanctions at the border through customs authorities and the Directorate of Revenue Intelligence (DRI). • Directorate General of Foreign Trade (DGFT): Administers the export control regime and strategic trade controls. The DGFT maintains the SCOMET list and processes export authorisation applica - tions. • Reserve Bank of India (RBI): Serves as the principal financial regulator for sanctions compliance within the banking and financial system. The RBI issues Master Directions and circulars governing the obli - gations of banks and financial institutions. • Financial Intelligence Unit – India (FIU-IND): Receives and processes suspicious transaction reports and disseminates intelligence to enforce - ment agencies. FIU-IND also supervises reporting entities for compliance with anti-money laundering and counter-terrorism financing obligations. 2.2 Enforcement 2.2.1 Enforcement Responsibilities Implementation and enforcement of the statutes con - stituting the sanctions framework in India is entrusted to the following agencies: • the MEA enforces obligations under the UNSC Act by issuing and amending UNSCA Orders; • the MHA and NIA handle UAPA-related enforce - ment, including proscription of organisations and freezing of assets; • the Enforcement Directorate (ED) administers pro - ceedings under PMLA and FEMA, with powers of provisional attachment, search and seizure; • customs and the DRI enforce the Customs Act and FTDR Act at border crossings and through intelli - gence-led operations;
• the DGFT handles trade-related contraventions through suspension and cancellation of importer- exporter codes and denial of export authorisations; and • the RBI exercises supervisory enforcement in the financial sector through directions, monetary pen - alties and licensing actions. The above agencies also rely on the relevant state machinery for criminal enforcement and prosecution. Prosecutions are conducted before designated spe - cial courts established under the relevant statutes, with appeals lying to the respective High Courts and ultimately to the Supreme Court of India. 2.2.2 Breaching Sanctions The Indian framework, comprising multiple legisla - tions, prescribes criminal penalties based on the nature of the offence under the respective statutes. UAPA Death or imprisonment for life for terrorist acts; impris - onment of up to 14 years for raising funds for terrorist organisations; up to ten years for providing support to terrorist organisations; forfeiture of property used in or derived from the commission of the offence; death or life imprisonment for being a member of an unlaw - ful association; imprisonment for a term which may extend up to three years, one year and five years for dealing with funds of an unlawful association, contra - vention of order made with respect to unlawful places and indulging in unlawful activities, respectively. WMD Act Imprisonment for five years, extendable to life impris - onment, together with a fine for trade in prohibited goods or financing of prohibited activities related to weapons of mass destruction. Customs Act Imprisonment of up to three years and/ or fine for eva - sion of prohibitions on import or export; up to two years for false declarations; and confiscation of goods and conveyances. PMLA Rigorous imprisonment of three to seven years together with a fine for money laundering offences
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