Special provisions relating to assets held outside India in contravention of section 4
Section 37A of the Foreign Exchange Management Act, 1999 deals with special provisions relating to assets held outside India in contravention of section 4. 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 afte The Act came into force on 01 Jun 2000.
1 [37A. Special provisions relating to assets held outside India in contravention of section 4.—(1) 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:
Provided that no such seizure shall be made in case where 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.
(2) The order of seizure along with relevant material shall be placed before the Competent Authority, appointed by the Central Government, who shall be an officer not below the rank of Joint Secretary to the Government of India by the Authorised Officer within a period of thirty days from the date of such seizure.
(3) 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, the period of 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.
(4) 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):
Provided that if, at any stage of the proceedings under this Act, 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, as the case may be, on receipt of an application in this regard from the aggrieved person, and after affording an opportunity of being heard to the aggrieved person and representatives of the Directorate of Enforcement, shall pass an appropriate order as it deems fit, including setting aside of the seizure made under sub-section (1).
(5) Any person aggrieved by any order passed by the Competent Authority may prefer an appeal to the Appellate Tribunal.
(6) Nothing contained in section 15 shall apply to this section.]
Section 37A, 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
Referred to by 3
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.
-
Joy Varghese Alukkas v. Union of India
Court's Decision & Legal Precedent
Where ED seizes property under FEMA s.37A(1) and the competent authority under s.37A(3) refuses confirmation, the s.37A(1) seizure stands eclipsed/suspended so long as the competent-authority order holds the field and the Tribunal has issued no interim/final order restoring the seizure. Pending ED appeal alone does not keep the seizure alive.
On this section: s.37A(1)/(3) — unconfirmed seizure eclipsed by competent-authority non-confirmation until Tribunal orders otherwise
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.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
-
… (Rupees Eighty Seven Crores Eighty Four Lakhs Twenty Six Thousand Eight Hundred and Five Only)] vide letter dated 12.10.2021 to Commissioner of Customs (Appeals-I), and an amount of approximately Rs.51,22,88,087/- (Rupees Fifty One Crores and Twenty Two Lakhs Eighty Eight Thousand and Eighty Seven Only) under Section 37A(1) of Foreign Exchange Management Act, 1999 (FEMA) vide Seizure Orders dated 26.08.2021, 30.09.2021 and 15.12.2001. 3. The respondent No.1 company preferred a Writ Petition No.36212/2021 before the High Court of Telangana praying for quashment of the impugned Seizure Orders and directing release of the properties …
Questions about Section 37A
What have the courts held on Section 37A of the Foreign Exchange Management Act?
Joy Varghese Alukkas v. Union of India (09 Jan 2024) is the leading judgment on this section among those set out below: s.37A(1)/(3) — unconfirmed seizure eclipsed by competent-authority non-confirmation until Tribunal orders otherwise.
How do I find court cases under Section 37A 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 37A, section 37A Fema, section 37A of the 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 Joy Varghese Alukkas v. Union of India (09 Jan 2024).
What should I read with Section 37A of the Foreign Exchange Management Act, and has it changed?
Its own text turns on section 4 (Holding of foreign exchange, etc), section 15 (Power to compound contravention), so none of them can safely be read on its own. 3 other provisions in this corpus refer back to it.
When did Section 37A of the Foreign Exchange Management Act come into force?
Section 37A of the Foreign Exchange Management Act, cited as Fema 37A, 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
- 2. Definitions1265 words
- 14. Enforcement of the orders of Adjudicating Authority837 words
- 13. Penalties496 words
- 10. Authorised person489 words
- 49. Repeal and saving475 words
- 19. Appeal to Appellate Tribunal465 words
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.