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CS Executive · Economic, Commercial and Intellectual Property Laws · Foreign Direct Investments - Regulations and Policy

Ravi's overseas property was seized in equivalent value in India under section 37A and the seizure was confirmed. During adjudication he discloses the foreign property and brings it back into India. What does the proviso to section 37A(4) permit?

On his application, after hearing him and the Directorate of Enforcement representatives, the Competent or Adjudicating Authority passes an appropriate order as it deems fit, which can include setting aside the seizure. Release is not automatic, and a hearing is mandatory.

  1. ANothing, as confirmed seizure cannot be altered
  2. BOnly reduction of the seizure by half
  3. CThe Competent Authority or Adjudicating Authority may pass an appropriate order, including setting aside the seizure, after hearing him and the Enforcement representativesCorrect
  4. DAutomatic release of the seizure without any hearing

Explanation

The proviso to section 37A(4) says that if at any stage the aggrieved person discloses the asset and brings it back to India, then on application and after a hearing of him and the Directorate of Enforcement representatives, the authority shall pass an appropriate order, including setting aside the seizure. Release is not automatic and a hearing is required.

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