Section 37 of FEMA : Section 37: Power Of Search, Seizure, Etc

Explanation using Example

Imagine a business owner in India, Mr. Sharma, who has been receiving large sums of money from a foreign country without proper documentation. This raises suspicion of a violation of FEMA regulations. Under Section 37(1) of the Foreign Exchange Management Act, 1999, the Director of Enforcement, or an officer not below the rank of an Assistant Director, could initiate an investigation into Mr. Sharma's financial activities to determine if there has been a contravention of Section 13, which deals with the management of foreign exchange.

In addition to this, as per Section 37(2), the Central Government could empower an officer at the level of Under Secretary or above from the Central Government, State Government, or the Reserve Bank of India to investigate Mr. Sharma's case to ensure compliance with FEMA.

These officers, as stated in Section 37(3), would have similar powers to those of income-tax authorities, such as the ability to summon individuals, inspect documents, and search premises, to effectively carry out the investigation into the suspected FEMA contravention.