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CS Executive · Economic, Commercial and Intellectual Property Laws · Overseas Direct Investment

Rohit is found to have acquired foreign security and immovable property outside India of aggregate value exceeding the threshold prescribed under the proviso to Section 37A(1). Which combination of consequences does Section 13 provide for?

Rohit faces a penalty up to three times the sum involved, confiscation of equivalent value situated in India, and additionally imprisonment up to five years with fine. A court can take cognizance only on a written complaint by an officer not below the rank of Assistant Director.

  1. APenalty up to thrice the sum involved and confiscation of equivalent value situated in India; additionally imprisonment up to five years and fine, with cognizance only on written complaint by an officer not below Assistant DirectorCorrect
  2. BPenalty up to Rs 2 lakh only, with no confiscation or imprisonment
  3. CConfiscation of equivalent value only, with prosecution possible on a private complaint to any court
  4. DImprisonment up to five years only, with no monetary penalty, and courts may take cognizance suo motu

Explanation

Section 13(1A) gives penalty up to three times the sum plus confiscation of equivalent value in India. Section 13(1C) adds imprisonment up to five years and fine. Section 13(1D) bars cognizance except on a written complaint by an officer not below Assistant Director.

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