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

Under Section 37A, the Authorised Officer seizes in India value equivalent to a suspected foreign asset held in breach of Section 4. The order was seized on 1 March. Which statement is correct as per the section?

The Authorised Officer must place the seizure order before the Competent Authority within thirty days of seizure, and the Competent Authority must confirm or set it aside within 180 days of seizure, excluding any court stay period.

  1. AThe order must be placed before the Competent Authority within thirty days of seizure, who must dispose of it within 180 days of seizure, excluding any court stay periodCorrect
  2. BThe order must be placed before the Adjudicating Authority within 180 days, who must dispose of it within thirty days
  3. CThe seizure continues indefinitely and no authority reviews it
  4. DThe Competent Authority may dispose of it at any time, as no time limit is prescribed

Explanation

Section 37A(2) requires placing the order before the Competent Authority within thirty days of seizure. Section 37A(3) requires disposal within 180 days of seizure, with court stay periods excluded and at least thirty further days after the stay is vacated. The other options reverse or ignore these limits.

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