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

During adjudication, Sunil, whose Indian assets were seized under Section 37A, discloses a foreign property held in breach of Section 4 and brings it back into India. What does the proviso to Section 37A(4) allow?

On Sunil's application, the Competent Authority or Adjudicating Authority, after hearing him and the Directorate of Enforcement's representatives, can pass an appropriate order, including setting aside the seizure. Release is not automatic, but disclosure and bringing the asset back into India opens this relief.

  1. AAutomatic release of all seized assets without any hearing
  2. BThe Competent Authority or Adjudicating Authority, on his application and after a hearing, may pass an appropriate order, including setting aside the seizureCorrect
  3. COnly a reduction of the thirty-day period for placing the order before the Competent Authority
  4. DNo relief, because disclosure after seizure has no effect

Explanation

The proviso to Section 37A(4) says that if at any stage the aggrieved person discloses the asset and brings it back into India, then on application and after hearing him and the Enforcement Directorate's representatives, the Competent or Adjudicating Authority passes an appropriate order, including setting aside the seizure. Release is therefore not automatic.

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