In exercise of the powers conferred by clause a of Section 8 of the Conservation of Foreign Exchange

## Policy Analysis Report: Reconstitution of Advisory Board under COFEPOSA **1. Executive Summary:** This report analyzes a notification (G.S.R. 161E) issued by the Ministry of Finance, Department of Revenue, Central Economic Intelligence Bureau on March 9, 2021. This notification concerns the reconstitution of an Advisory Board under Section 8 of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA). The core purpose is to establish a new Advisory Board for a period of one year. The key finding is the appointment of three members to the board, including a Chairperson who is the Chief Justice. **2. Introduction:** This report aims to provide a comprehensive overview of the Notification G.S.R. 161E, issued on March 9, 2021, regarding the reconstitution of an Advisory Board under COFEPOSA. The analysis is based solely on the information provided in the notification text. **3. Policy Overview:** * This notification is an amendment, superseding Notification G.S.R. No. 183 E dated 17th March, 2020, except for actions already taken or omitted before the supersession. * **Core Objective:** The primary objective is to reconstitute an Advisory Board for a duration of one year, as mandated by Section 8 of COFEPOSA. **4. Background and Rationale:** The notification explicitly states that it supersedes a previous notification (G.S.R. No. 183 E dated 17th March, 2020). This suggests that the previous Advisory Board's term may have expired or that there was a need for a new board. The specific reasons for the reconstitution are not detailed within the text but could be related to the ongoing need for expert advice on matters related to foreign exchange conservation and smuggling prevention. This reconstitution likely ensures continuity in the advisory process required under COFEPOSA. **5. Key Provisions / Changes:** This notification introduces the following key changes: * **Specific Change:** It supersedes the previous notification (G.S.R. No. 183 E dated 17th March, 2020), effectively replacing the previously constituted Advisory Board with a new one. * **New Rule/Provision:** The notification specifies the composition of the newly constituted Advisory Board: * Hon'ble Mr. Justice D. N. Patel, Chief Justice, Chairperson * Hon'ble Mr. Justice J. R. Midha, Member * Hon'ble Mr. Justice C. Hari Shankar, Member * **Difference/Effect of Change:** The prior board is replaced with a new board consisting of the individuals listed above. The new board will serve for a period of one year. The effect is to ensure a functioning Advisory Board is in place to fulfill the requirements of COFEPOSA. **6. Target Audience and Stakeholders:** The target audience and stakeholders directly affected by this notification include: * The members of the reconstituted Advisory Board (Hon'ble Mr. Justice D. N. Patel, Hon'ble Mr. Justice J. R. Midha, and Hon'ble Mr. Justice C. Hari Shankar). * The Central Economic Intelligence Bureau (CEIB), which is responsible for the notification. * Individuals detained under COFEPOSA, who have the right to be heard by the Advisory Board. * The Ministry of Finance and other government agencies involved in the enforcement of COFEPOSA. * Industries affected by foreign exchange regulations and anti-smuggling measures **7. Implementation Aspects (Inferred):** * **Responsible Agency:** The Central Economic Intelligence Bureau (CEIB), under the Ministry of Finance (Department of Revenue), is the responsible agency for issuing the notification. * **Timeline:** The notification comes into effect on March 23, 2021. The Advisory Board is reconstituted for a period of one year. * **Specific to Changes:** The CEIB is responsible for ensuring the new board is informed and operational by the effective date, March 23, 2021. **8. Expected Outcomes / Impact of Changes:** The intended outcome of this reconstitution is to ensure the continued and effective functioning of the Advisory Board under COFEPOSA. The reconstituted board is expected to provide expert advice and guidance to the government on matters related to the conservation of foreign exchange and prevention of smuggling activities. This ultimately contributes to maintaining economic stability and combating illegal trade practices. The one-year term suggests a periodic review of the board's composition. **9. Conclusion:** The Notification G.S.R. 161E signifies the reconstitution of the Advisory Board under COFEPOSA, with a newly appointed panel of members. This action is crucial for the ongoing administration of COFEPOSA, ensuring that the government has access to expert advice in its efforts to conserve foreign exchange and prevent smuggling activities. The notification ensures that individuals detained under COFEPOSA continue to have their cases reviewed by a properly constituted Advisory Board.

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