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

Under Section 37A, if the aggrieved person discloses a foreign asset and brings it back into India at any stage of proceedings, what may the Competent Authority or Adjudicating Authority do?

On application, and after hearing the aggrieved person and the Enforcement Directorate, the authority may pass an appropriate order as it deems fit, including setting aside the seizure. This applies where the person discloses the foreign asset and brings it back into India.

  1. APass an appropriate order as it deems fit, including setting aside the seizure, after hearing the aggrieved person and Enforcement representativesCorrect
  2. BAutomatically confirm the seizure and impose three times penalty
  3. CRefer the matter to the Appellate Tribunal for prosecution
  4. DHave no power since the seizure is final

Explanation

The proviso to Section 37A(4) lets the authority, on application and after hearing both sides, pass an appropriate order including setting aside the seizure. It is discretionary and not automatic. Confirmation with penalty or lack of power is not what the proviso says.

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