Section 8(3) of FERA 1973 makes it obligatory for any person who acquires foreign exchange for any particular purpose but does not for any reason whatsoever use it for that purpose, to surrender the foreign exchange without delay to an authorised dealer in foreign exchange. Use of such foreign exchange for any other purpose is an offence under the Act.

Furthermore, in terms of Section 8(4) ibid, where any person acquires foreign exchange for importing goods into India but does not at all import the goods or does not import goods of a value representing the foreign exchange acquired within a reasonable time or imports goods of a kind, quality or quantity different from that specified by him at the time of acquisition of the foreign exchange, he shall be presumed to have been unable to use the foreign exchange for the purpose for which it was acquired or, as the case may be, to have used the foreign exchange for a purpose other than the one for which it was acquired. Pursuant to the provisions of Section 9 of FERA 1973, Reserve Bank has permitted credit of rupees to non-resident accounts as one of the methods of payment to persons resident outside India for making payment towards imports. This permission is subject to the condition that payment in such manner by any person is made towards imports as declared by the importer and not for any other purpose. It is, therefore, obligatory for any such person to use the payment only for the purpose declared by him. If the payment is used for any other purpose, it will amount to a breach of the condition subject to which permission has been granted. These provisions are also applicable in case of payments through Asian Clearing Union.