An authorized officer under Foreign Exchange Management Act, 1999 had reason to believe that Amar held foreign exchange and immovable property outside India in contravention of certain provisions of the Act. The authoriz

Section 37A of the Foreign Exchange Management Act, 1999 (FEMA) provides special provisions relating to assets held outside India in contravention of Section 4 of the Act. Section 37A states: Power to Seize Equivalent Value: Upon receipt of any information or otherwise, if the Authorised Officer prescribed by the Central Government has reason to believe that any foreign exchange, foreign security, or any immovable property, situated outside India, is suspected to have been held in contravention of Section 4, he may after recording the reasons in writing, by an order, seize value equivalent, situated within India, of such foreign exchange, foreign security or immovable property. Proviso: No such seizure shall be made if the aggregate value of such foreign exchange, foreign security or any immovable property, situated outside India, is less than the value as may be prescribed. Placement before Competent Authority: The order of seizure along with relevant material shall be placed before the Competent Authority, appointed by the Central Government (an officer not below the rank of Joint Secretary), by the Authorised Officer within a period of thirty days from the date of such seizure. Disposal by Competent Authority: The Competent Authority shall dispose of the petition within a period of one hundred eighty days from the date of seizure by either confirming or by setting aside such order, after giving an opportunity of being heard to the representatives of the Directorate of Enforcement and the aggrieved person. Explanation: While computing the period of one hundred eighty days, any stay granted by court shall be excluded, and a further period of at least thirty days shall be granted from the date of communication of vacation of such stay order. Confirmation Order: The order of the Competent Authority confirming seizure of equivalent asset shall continue till the disposal of adjudication proceedings and thereafter, the Adjudicating Authority shall pass appropriate directions in the adjudication order with regard to further action as regards the seizure made under sub-section (1). Proviso: If, at any stage, the aggrieved person discloses the fact of such foreign exchange, foreign security or immovable property and brings back the same into India, then the Competent Authority or the Adjudicating Authority shall pass an appropriate order, including setting aside of the seizure. Appeal: Any person aggrieved by any order passed by the Competent Authority may prefer an appeal to the Appellate Tribunal. Compounding: Nothing contained in Section 15 (relating to Power to compound contravention) shall apply to this section. In view of the above provisions, the action of the authorized officer in seizing Amar's properties located in India, based on a reasonable belief of contravention of FEMA, is tenable under the Foreign Exchange Management Act, 1999.