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

Kavita Rao is found to have acquired foreign immovable property worth more than the prescribed threshold under the proviso to section 37A(1), in contravention of FEMA. Which consequence is provided in section 13 in addition to the penalty under sub-section (1A)?

In addition to the penalty up to three times the sum involved and confiscation of equivalent value in India, she is punishable with imprisonment up to five years and with fine. Courts take cognizance only on a written complaint by an officer not below Assistant Director.

  1. AImprisonment up to five years and fineCorrect
  2. BImprisonment up to two years only
  3. CFine only, with no imprisonment
  4. DProsecution by a court on its own cognizance

Explanation

Section 13(1C) provides, in addition to the 1A penalty, imprisonment up to five years and fine. Under 13(1D), courts take cognizance only on a written complaint by an officer not below Assistant Director, so suo motu cognizance is wrong.

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