Skip to content

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

During proceedings, Deepak Iyer, whose foreign property was suspected of being held in contravention, discloses it and brings it back into India. What may the Competent Authority or Adjudicating Authority do on his application?

On disclosure and bringing the asset back into India, the Competent or Adjudicating Authority, on his application and after hearing him and the Directorate of Enforcement, may pass an appropriate order as it deems fit, including setting aside the seizure. Penalties are not automatically waived.

  1. ANothing, as the seizure must continue until prosecution ends
  2. BPass an appropriate order as it deems fit, including setting aside the seizure, after hearing him and the Directorate of EnforcementCorrect
  3. CAutomatically waive all penalties under section 13
  4. DTransfer the matter to the Reserve Bank for decision

Explanation

The proviso to section 37A(4) lets the authority, on application and after hearing both sides, pass an appropriate order including setting aside the seizure. It does not promise automatic waiver of penalties.

Did you get it right without looking?

One question tells you little. A timed set on Setting up of Business outside India and Issues Relating thereto shows your real accuracy, how long you take and where you lose marks.

Practise Setting up of Business outside India and Issues Relating theretoFree diagnostic mock

More Setting up of Business outside India and Issues Relating thereto questions