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CS Executive · Setting Up of Business, Industrial and Labour Laws · Setting up of Business outside India and Issues Relating thereto

An Authorised Officer seized assets in India on 1 March under Section 37A. Ignoring any court stay, which statement about the follow-up process is correct?

The seizure order with relevant material must be placed before the Competent Authority within thirty days of seizure, and the Competent Authority must dispose of it within 180 days from seizure, confirming or setting it aside after hearing both sides. Court stay periods are excluded from the 180 days.

  1. AThe order must be placed before the Competent Authority within thirty days of seizure, who must dispose of the matter within 180 days of seizureCorrect
  2. BThe order must be placed before the Competent Authority within 180 days, who must dispose of it within thirty days
  3. CThe order goes directly to the Appellate Tribunal within thirty days, which must decide within 180 days
  4. DThe order need not be placed before anyone if the aggrieved person is heard by the Authorised Officer

Explanation

Section 37A(2) requires placing the order and material before the Competent Authority, an officer not below Joint Secretary rank, within thirty days of seizure. Section 37A(3) requires disposal within 180 days from seizure, after hearing the Enforcement Directorate's representatives and the aggrieved person. The other options reverse or invent the steps.

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