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CS Executive · Economic, Commercial and Intellectual Property Laws · Law relating to Foreign Exchange Management

A seizure under Section 37A was confirmed by the Competent Authority. During adjudication, the aggrieved person, Kavita, discloses her overseas property and brings it back into India, then applies. What may the Competent Authority or Adjudicating Authority do under the proviso to Section 37A(4)?

The authority may pass an appropriate order as it deems fit, including setting aside the seizure, after hearing Kavita and the Directorate of Enforcement representatives. This follows from disclosure and bringing the asset back to India under the proviso to Section 37A(4); the relief is not automatic.

  1. ANothing, as confirmed seizure cannot be revisited
  2. BPass an appropriate order as it deems fit, including setting aside the seizure, after hearing her and the Enforcement Directorate representativesCorrect
  3. CAutomatically set aside the seizure without any hearing
  4. DTransfer the matter to the civil court under Section 15

Explanation

The proviso to Section 37A(4) allows an appropriate order, including setting aside the seizure, once the person discloses the asset and brings it back into India, after an opportunity of being heard to her and the Directorate's representatives. It is not automatic, so the no-hearing option is wrong. Section 37A(6) says Section 15 does not apply.

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