https://www.taxtmi.com/caselaws?id=447103 The Delhi HC dismissed a petition challenging a seizure order under Section 37A(1) of FEMA. The petitioner, operating a digital lending platform, was accused of making bogus foreign remittances to related companies under the guise of software licensing fees, allegedly holding foreign exchange outside India in contravention of Section 4. The HC held that while the "reason to believe" standard requires tangible material and cannot be arbitrary, the court cannot substitute its opinion for the competent authority's at the seizure stage. Since adjudicatory proceedings were pending with substantial hearings already conducted, the court declined to exercise discretionary powers under Article 226, finding no ultra vires action warranting interference. en-us Wed, 13 Dec 2023 00:00:00 +0530 Tue, 19 Dec 2023 09:00:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=447103 The Delhi HC dismissed a petition challenging a seizure order under Section 37A(1) of FEMA. The petitioner, operating a digital lending platform, was accused of making bogus foreign remittances to related companies under the guise of software licensing fees, allegedly holding foreign exchange outside India in contravention of Section 4. The HC held that while the "reason to believe" standard requires tangible material and cannot be arbitrary, the court cannot substitute its opinion for the competent authority's at the seizure stage. Since adjudicatory proceedings were pending with substantial hearings already conducted, the court declined to exercise discretionary powers under Article 226, finding no ultra vires action warranting interference. Case-Laws FEMA Wed, 13 Dec 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=447103