law: Foreign Exchange Management Act, 1999 
  13. Penalties 
  (1) If any person contravenes any provision of this Act, or
  
  contravenes any rule, regulation, notification, direction or order issued in
  
  exercise of the powers under this Act, or contravenes any condition subject to
  
  which an authorization is issued by the Reserve Bank, he shall, upon adjudication,
  
  be liable to a penalty up to thrice the sum involved in such contravention
  
  where such amount is quantifiable, or up to two lakh 
  
  rupees where the amount is not quantifiable, and where such contravention is a
  
  continuing one, further penalty which may extend to five thousand rupees for
  
  every day after the first day during which the contravention continues.
  (2) Any Adjudicating Authority adjudging any contravention under
  
  sub-section (1), may, if he thinks fit in addition to any penalty which he may
  
  impose for such contravention direct that any currency, security or any other
  
  money or property in respect of which the contravention has taken place shall
  
  be confiscated to the Central Government and further direct that the foreign
  
  exchange holdings, if any of the persons committing the contraventions or any
  
  part thereof, shall be brought back into India or shall be retained outside
  
  India in accordance with the directions made in this behalf.
  Explanation.- For the purposes of this sub-section,
  
  "property" in respect of which contravention has taken place, shall
  
  include ;- 
  a. deposits in a bank, where the said property
  
  is converted into such deposits;
  b. Indian currency, where the said property is
  
  converted into that currency; and
  c. any other property which has resulted out
  
  of the conversion of that property.