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

An Authorised Officer seizes assets in India equal in value to a suspected undisclosed foreign property of Rohit under Section 37A. Which statement is correct?

The seizure order with material must go to the Competent Authority within thirty days of seizure, and that authority must confirm or set it aside within 180 days, excluding any court stay period. Appeal against its order lies to the Appellate Tribunal.

  1. AThe order and material must be placed before the Competent Authority within thirty days of seizure, and the Competent Authority must dispose of the matter within 180 days, excluding court stay periodsCorrect
  2. BThe order must be placed before the Competent Authority within 180 days, who must decide within thirty days
  3. CThe seizure needs no review, as the Authorised Officer's order is final
  4. DThe Competent Authority must be an officer of the rank of Deputy Secretary, and appeal lies to the Adjudicating Authority

Explanation

Under Section 37A(2) the order goes to the Competent Authority (not below Joint Secretary rank) within thirty days of seizure. Under 37A(3) it is disposed of within 180 days, excluding stay periods, and appeal lies to the Appellate Tribunal under 37A(5). The reversed periods in the second option are wrong.

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