Section37
The Foreign Exchange Management Act, 1999

Power of search, seizure, etc

In force From 01 Jun 2000 Act 42 of 1999 As on 15 Oct 2026

Act 42 of 1999 Ministry Finance Enacted 29 Dec 1999 In force 01 Jun 2000 Instruments 1

Section 37 of the Foreign Exchange Management Act, 1999 deals with power of search, seizure, etc. The Director of Enforcement and other officers of Enforcement, not below the rank of an Assistant Director, shall take up for investigation the contravention referred to in section 13. The Act came into force on 01 Jun 2000.

(1) The Director of Enforcement and other officers of Enforcement, not below the rank of an Assistant Director, shall take up for investigation the contravention referred to in section 13.

(2) Without prejudice to the provisions of sub-section (1), the Central Government may also, by notification, authorise any officer or class of officers in the Central Government, State Government or the Reserve Bank, not below the rank of an Under Secretary to the Government of India to investigate any contravention referred to in section 13.

(3) The officers referred to in sub-section (1) shall exercise the like powers which are conferred on income-tax authorities under the Income-tax Act, 1961 (43 of 1961) and shall exercise such powers, subject to such limitations laid down under that Act.

Section 37, The Foreign Exchange Management Act, 1999 (Act 42 of 1999).

Cross-references

Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.

This section refers to

  1. s. 13 Penalties

Related judgements & precedents

These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.

  1. Lalit Kumar Modi v. Special Director, Directorate of Enforcement

    High Court 30 Jan 2018 Persuasive (High Court) Reportable

    Court's Decision & Legal Precedent

    Where FEMA adjudication expressly relies on statements of witnesses recorded under investigation, denial of cross-examination of those witnesses violates natural justice and fair hearing implicit in adjudicatory process under Section 16. Adjudicating authorities are not bound by the Evidence Act but must allow testing of material relied on to establish contested facts.

    On this section: Statements recorded under FEMA s.37 and relied upon in adjudication must be open to cross-examination.

    Read the full order on eCourts India

The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.

Made under this section, and citing it

1 instrument names this provision in its title or its text without being made under it.

All subordinate legislation

Questions about Section 37

What have the courts held on Section 37 of the Foreign Exchange Management Act?

Lalit Kumar Modi v. Special Director, Directorate of Enforcement (30 Jan 2018) is the leading judgment on this section among those set out below: Statements recorded under FEMA s.37 and relied upon in adjudication must be open to cross-examination.

How do I find court cases under Section 37 of the Foreign Exchange Management Act?

In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Fema 37, section 37 Fema, section 37 of the Foreign Exchange Management Act. People searching for it also type section 37 of foreign exchange management act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Lalit Kumar Modi v. Special Director, Directorate of Enforcement (30 Jan 2018).

What should I read with Section 37 of the Foreign Exchange Management Act, and has it changed?

Its own text turns on section 13 (Penalties), so none of them can safely be read on its own. One instrument names it without being made under it, most recently the Foreign Exchange Management (Encashment of Draft, Cheque, Instrument and payment of interest) Rules, 2000. (2000).

When did Section 37 of the Foreign Exchange Management Act come into force?

Section 37 of the Foreign Exchange Management Act, cited as Fema 37, came into force on 01 Jun 2000, having been enacted on 29 Dec 1999. It is in force as at the date shown on this page.

Other sections of this Act

Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.