Section 39 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 39 deals with evidence. When a document that was produced, furnished or seized under the Act or any other law, or received from outside India during an investigation, is tendered against a person in a proceeding under the Act, the court or the Adjudicating Authority must make three presumptions about it. Two of them can be answered by proof to the contrary.
The section covers documents of two kinds: (i) produced, furnished or seized from a person under the Act or any other law, and (ii) received from outside India, duly authenticated as prescribed, in the course of an investigation. The court or Adjudicating Authority shall presume the handwriting and execution (clause (a)), admit the document even if not duly stamped (clause (b)), and, for kind (i) only, presume the truth of its contents (clause (c)), unless the contrary is proved.
About this article
This article is based on the consolidated text of the Act consulted (amendments shown up to Act 50 of 2019). Later amendments should be checked. Section 39 is printed without a footnote of amendment. The proceedings in which the presumption works include adjudication under section 16; see our post on adjudication under section 16. If documents seized or furnished in an inquiry are going to be used against you, our legal consultation team can help you review them.
The two kinds of document
The section opens "Where any document" and then lists two situations.
Clause (i). The document is produced or furnished by any person or has been seized from the custody or control of any person, in either case under this Act or under any other law.
Clause (ii). The document has been received from any place outside India, duly authenticated by such authority or person and in such manner as may be prescribed, in the course of investigation of any contravention under the Act alleged to have been committed by any person.
| Kind | Source | Condition |
|---|---|---|
| Clause (i) | Produced or furnished by a person, or seized from a person's custody or control | Under this Act or under any other law |
| Clause (ii) | Received from a place outside India | Duly authenticated as prescribed; during investigation of an alleged contravention |
The words "under any other law" widen clause (i): a document that was seized under a law other than FEMA can still fall within the section, if it is tendered in a proceeding under this Act. The seizure power of the Act's own officers is the subject of our article on section 37.
The hook for authentication
For clause (ii), the authority or person who must authenticate, and the manner, are as may be prescribed. The hook is section 46(2)(h): "the authority or person and the manner in which any document may be authenticated under clause (ii) of section 39". The Act prints neither. The authority and the manner are in the rules made by the Central Government under section 46, as amended from time to time; check them for a particular document.
When the presumptions apply
The document must be tendered in any proceeding under this Act in evidence against him, or against him and any other person who is proceeded against jointly with him. Two points follow.
- The presumption is tied to a proceeding under the Act. It is not stated for proceedings under other laws.
- It works against the person against whom it is tendered. A document tendered by the person himself, in his own favour, is outside these words.
The bodies that must apply it are "the court or the Adjudicating Authority, as the case may be". The Adjudicating Authority is the officer authorised under section 16(1) (section 2(a)).
The three presumptions
(a) Handwriting and execution. The court or Adjudicating Authority shall presume, unless the contrary is proved, that the signature and every other part of the document that purports to be in the handwriting of any particular person, or that the court may reasonably assume to have been signed by or to be in the handwriting of any particular person, is in that person's handwriting; and, in the case of a document executed or attested, that it was executed or attested by the person by whom it purports to have been so executed or attested.
(b) Stamp. The court or Adjudicating Authority shall admit the document in evidence notwithstanding that it is not duly stamped, if the document is otherwise admissible in evidence. This clause has no "unless the contrary is proved" qualifier. It is a rule of admission, and the words "otherwise admissible" mean that other rules of admissibility still apply.
(c) Truth of contents. In a case falling under clause (i), the court or Adjudicating Authority shall also presume, unless the contrary is proved, the truth of the contents of the document. Clause (c) is confined to clause (i). For a document received from outside India under clause (ii), the Act does not presume the truth of its contents; the presumptions in (a) and (b) apply.
| Presumption | Applies to | Can it be rebutted? |
|---|---|---|
| (a) Handwriting, execution, attestation | Clause (i) and clause (ii) documents | Yes, "unless the contrary is proved" |
| (b) Admission although not duly stamped | Clause (i) and clause (ii) documents | Not framed as a presumption; admissibility otherwise still required |
| (c) Truth of contents | Clause (i) documents only | Yes, "unless the contrary is proved" |
What a presumption does and does not do
A presumption shifts the burden: the person against whom the document is tendered must produce proof to the contrary if he wants to avoid the presumed fact. It does not make the document conclusive. The Act does not say what standard of proof is needed to rebut, or what kind of evidence will do; the Adjudicating Authority or court decides on the facts.
In practice the effect is felt in clause (c). A statement, ledger or letter taken from a person's custody is taken to be true in what it says until the person shows otherwise. A business that is told its own records will be used should therefore be ready to explain them. See also section 28, under which the Appellate Tribunal and the Special Director (Appeals) have civil court powers on documents and affidavits; our article on section 28 covers it.
Example. During an investigation, a hypothetical importer, Bluewave Imports Pvt Ltd, furnishes its account books to an enforcement officer. Later the books are tendered against the company before the Adjudicating Authority. Under clause (a) the authority presumes the signatures on them are genuine; under clause (b) it admits a loan agreement among them even though it is not duly stamped, if otherwise admissible; and under clause (c) it presumes the contents are true unless the company proves the contrary. A bank statement received from a foreign bank, duly authenticated in the manner prescribed, is a clause (ii) document: the presumptions of handwriting and admission apply, but not the presumption of truth of its contents.
What the Act does not say
- It does not name the authority or the manner of authentication for foreign documents; the rules do.
- It does not say how a presumption is rebutted.
- It does not extend the presumption of truth to clause (ii) documents.
- It does not say what happens to the stamp duty on a document admitted although not duly stamped.
Need help with documents in a FEMA proceeding?
Records furnished or seized during an enquiry can carry weight in a later proceeding. Our legal consultation team can help you review what has been furnished and prepare to answer it.
Key takeaways
- Section 39 applies to documents produced, furnished or seized under the Act or any other law (clause (i)) and to documents received from abroad, duly authenticated, during an investigation (clause (ii)).
- Handwriting and execution are presumed, unless the contrary is proved.
- A document is admitted though not duly stamped, if otherwise admissible.
- The truth of the contents is presumed for clause (i) documents, unless the contrary is proved.
- Authentication of foreign documents is prescribed under section 46(2)(h).
Read next
- Section 37: investigation, search and seizure powers
- Section 28: procedure and powers of the Appellate Tribunal and Special Director
- Sections 36 and 38: the Directorate of Enforcement and other officers
- Adjudication Under FEMA: Section 16
Disclaimer: Based on a consolidated text of the Foreign Exchange Management Act, 1999 showing amendments up to Act 50 of 2019, as consulted on 2 October 2026. Limits, forms, timelines and procedures are set by rules, regulations and Reserve Bank directions made under the Act; they change from time to time and are not covered here. Later amendments should be checked. This article is general information, not legal advice; check the official text before acting.