Consider the following statements regarding the Foreign Exchange Management Act, 1999 (FEMA):
Statement I: It is a criminal law.
Statement II: It empowers the Directorate of Enforcement with the authority to conduct searches, seizures, and investigations in cases of suspected violations.
Which one of the following is correct in respect of the above statements?
1
Both Statement I and Statement II are correct, and Statement II is the correct explanation for Statement I.
2
Both Statement I and Statement II are correct, but Statement II is not the correct explanation for Statement I.
3
Statement I is correct, but Statement II is incorrect.
4
Statement I is incorrect, but Statement II is correct.