Undeclared foreign currency in a parcel from UK sister

Dear Client
Its a scam and you immediately stop paying any money to them. You need to report this to the local police station to initiate a cyber crime complaint against those fraudsters. This type is scam is rampant now and you need to protect yourself from any such scam. Do not panic and do not share your bank or other important details with those people who are calling you regarding the parcel. If you wish then please get in touch with our Vidhikarya team to discuss more about this with a lawyer.

Dear Client,
Both Indian currency notes and UK currency are prohibited from being sent through parcel and courier. All international shipments from the UK to India are required to go through customs clearance. So, sending money to India from overseas will have tax implications for the recipient who is a resident of India. Under Regulation 5 of the Foreign Exchange Management (Possession and Retention of Foreign Currency) Regulations, 2000, clearly states that no person shall, without the general or special permission of the Reserve Bank of India, export or send out of India or bring into India, any foreign currency. The goods attempted to be exported are foreign currency, as defined under the FEMA, 2000. Section 2 (22) (d) of the Customs Act defines 'goods' to include currency and negotiable instruments. Thus, the definition of "goods" as stated in Section 2(22) along with the definition of "currency" stated in Section 2(h) of FEMA, make it clear that the export of currency contrary to the prohibition imposed under any other law is liable for confiscation and the recipient is liable to pay fine and taxes as applicable on the proven confiscation. Whenever the goods are confiscated by an adjudicating authority, if these are not prohibited goods, an option is to be given to the party as per Section 125 of the Customs Act, to pay a fine known as a ‘redemption fine’ of quantum as the adjudicating authority deems fit, in lieu of the confiscation and that gives you an option to pay the fine and take the goods and the confiscated items. Hence, if goods enter the Indian territory without paying customs duty that itself is considered a crime and simply called smuggling and the carrier or owner of the goods if caught will be charged and also be subjected to adjudication proceedings depending on the nature of the goods and the mode of snuggling used. If required, hire an Advocate experienced in Customs Act and FEMA matters to navigate the issue in the right way.