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

Under FEMA section 37A, an Authorised Officer suspects that a resident holds foreign assets abroad in contravention of section 4. Which statement about the seizure power is correct?

The Authorised Officer may, after recording reasons in writing, seize the equivalent value situated within India, not the overseas asset itself. The seizure order with relevant material must be placed before the Competent Authority within thirty days, and no seizure is allowed below the prescribed value.

  1. AHe may seize the foreign asset itself located abroad without recording reasons
  2. BHe may seize value equivalent situated within India after recording reasons in writing, and place the order before the Competent Authority within thirty daysCorrect
  3. CSeizure order needs no review by any authority
  4. DSeizure is allowed even where the aggregate value is below the prescribed value

Explanation

Section 37A(1) allows seizure of equivalent value within India after recording reasons in writing, with no seizure if the aggregate value is below the prescribed value. Under 37A(2), the order and material go to the Competent Authority within thirty days of seizure. The other options contradict these conditions.

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