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

Mr. Arjun Bedi's assets in India were seized under section 37A and the seizure was confirmed. During adjudication he discloses the suspected foreign property and brings it back into India. What may the Competent Authority or Adjudicating Authority do on his application?

On his application, after giving a hearing to him and to representatives of the Directorate of Enforcement, the authority passes an appropriate order as it deems fit, including setting aside the seizure. This applies when he discloses the asset and brings it back into India.

  1. ANothing, since a confirmed seizure cannot be altered
  2. BPass an appropriate order as it deems fit, including setting aside the seizure, after hearing him and the Directorate of EnforcementCorrect
  3. CAutomatically release the seizure without hearing the Directorate of Enforcement
  4. DRefer the matter to the Reserve Bank, which alone may set aside the seizure

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, the authority, on application and after hearing him and the Directorate's representatives, shall pass an appropriate order, including setting aside the seizure. Release is not automatic and the hearing is required.

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