Skip to content

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

The Authorised Officer suspects that Karan, resident in India, holds an undisclosed foreign property in breach of Section 4, and the property's value is above the prescribed value. What can the Authorised Officer do under Section 37A(1)?

The Authorised Officer may, after recording reasons in writing, order seizure of the value equivalent, situated within India, of the suspected foreign asset. Section 37A(1) does not allow seizure of the foreign property itself, and it applies only if the aggregate value is not below the prescribed value.

  1. ASeize the foreign property directly in the foreign country
  2. BSeize the value equivalent situated within India, by a reasoned written orderCorrect
  3. CSeize assets within India only after the Adjudicating Authority has passed its final order
  4. DCancel Karan's residential status in India

Explanation

Section 37A(1) lets the Authorised Officer, after recording reasons in writing, seize by order the value equivalent situated within India of the suspected foreign asset. It does not authorise seizure abroad. It is not postponed until adjudication ends, and it says nothing of residential status.

Did you get it right without looking?

One question tells you little. A timed set on Setting up of Business outside India and Issues Relating thereto shows your real accuracy, how long you take and where you lose marks.

Practise Setting up of Business outside India and Issues Relating theretoFree diagnostic mock

More Setting up of Business outside India and Issues Relating thereto questions