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CS Executive · Economic, Commercial and Intellectual Property Laws · Foreign Trade Policy and Procedure

Meera Textiles submits to the Director General a document it has reason to believe is false in a material particular, to claim an export benefit. Which statement is correct under the FTDR Act, 1992?

Using or causing the use of a document known or believed to be false in a material particular attracts a penalty of at least ₹10,000 or up to five times the value involved, whichever is more. Actual benefit or personal forging is not required.

  1. AIt is liable to a penalty of not less than ₹10,000 or more than five times the value involved, whichever is moreCorrect
  2. BIt is liable only if it actually obtained the benefit
  3. CIt is liable only if it forged the document itself, not if it merely used it
  4. DIt can be settled only by imprisonment, with no monetary penalty

Explanation

Section 11(3) covers a person who signs, uses or causes to be made, signed or used a declaration or document submitted to the Director General, knowing or having reason to believe it is forged, tampered with or false in a material particular. The penalty is as stated, whichever is more. Using the document suffices, and actual benefit is not required.

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