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

An Authorised Officer suspects that Kabir holds foreign property abroad in contravention of Section 4 and seizes an equivalent value of assets in India under Section 37A. Which statement is correct?

The seizure order with relevant material must be placed before the Competent Authority within thirty days of the seizure. The Competent Authority then has 180 days to confirm or set it aside, seizure below the prescribed value is barred, and Section 15 does not apply.

  1. AThe order must be placed before the Competent Authority within thirty days of the seizureCorrect
  2. BThe Competent Authority has one year to confirm or set aside the order
  3. CSection 15 compositions apply to the seizure
  4. DSeizure is allowed even if the foreign assets are below the prescribed value

Explanation

Under Section 37A(2), the seizure order and relevant material must be placed before the Competent Authority within thirty days of seizure. The Competent Authority must dispose of the matter within 180 days, not one year. The proviso bars seizure below the prescribed value, and Section 37A(6) excludes Section 15.

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