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CS Executive · Economic, Commercial and Intellectual Property Laws · Law relating to Foreign Exchange Management

The Authorised Officer seizes value-equivalent assets in India on suspicion that a resident holds foreign immovable property in contravention of section 4. Which statement about the process under section 37A is correct?

The seizure order must go to the Competent Authority within thirty days of seizure, and that authority must confirm or set it aside within one hundred eighty days of seizure, excluding any court-stay period. Section 15 does not apply to this provision.

  1. AThe order of seizure must be placed before the Competent Authority within thirty days of seizure, and the Competent Authority must dispose of the matter within one hundred eighty days of seizure, excluding court-stay periodsCorrect
  2. BThe seizure order must be placed before the Competent Authority within one hundred eighty days, and it is disposed of within thirty days
  3. CThe seizure order needs no review, as it continues until the Appellate Tribunal decides
  4. DSection 15 on composition applies to the seizure so that it ends automatically on payment

Explanation

Section 37A(2) requires placing the order before the Competent Authority within thirty days of seizure. Section 37A(3) gives one hundred eighty days from seizure to confirm or set aside, with stay periods excluded. The timelines in the second option are reversed. Section 37A(6) states that section 15 does not apply.

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