https://www.taxtmi.com/caselaws?id=799401 Section 37A of FEMA operates prospectively: completed pre-commencement transactions cannot be seized under it, but post-commencement payments forming part of an alleged connected arrangement may support preliminary action. A closed-loop pattern of foreign borrowing, NCD subscription, onward fund transfers, acquisition, amalgamation and repayment can supply jurisdictional facts for examining a possible Section 4 contravention, notwithstanding formal regulatory compliance or separate tax treatment. Recorded reasons based on that pattern may sustain seizure pending statutory confirmation, without later material creating a new basis. Rule 10 requires a reasoned NOC refusal with a demonstrable nexus to the investigation; an unexplained refusal requires fresh consideration and cannot be retrospectively justified by a later seizure. en-us Wed, 16 Sep 2026 00:00:00 +0530 Tue, 22 Sep 2026 08:17:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=799401 Section 37A of FEMA operates prospectively: completed pre-commencement transactions cannot be seized under it, but post-commencement payments forming part of an alleged connected arrangement may support preliminary action. A closed-loop pattern of foreign borrowing, NCD subscription, onward fund transfers, acquisition, amalgamation and repayment can supply jurisdictional facts for examining a possible Section 4 contravention, notwithstanding formal regulatory compliance or separate tax treatment. Recorded reasons based on that pattern may sustain seizure pending statutory confirmation, without later material creating a new basis. Rule 10 requires a reasoned NOC refusal with a demonstrable nexus to the investigation; an unexplained refusal requires fresh consideration and cannot be retrospectively justified by a later seizure. Case-Laws FEMA Wed, 16 Sep 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=799401