Section 24 FCRA 2010 - Seizure of Accounts or Records
Section 24 of the Foreign Contribution (Regulation) Act, 2010 deals with the seizure of accounts or records after an inspection under Section 23. It forms part of Chapter V of the Act, which deals with inspection, search and seizure.
What Section 24 provides
If, after inspection of an account or record referred to in Section 23, the inspecting officer has any reasonable cause to believe that any provision of the FCRA or any other law relating to foreign exchange has been, or is being, contravened, the officer may seize the account or record and produce it before the court, authority or tribunal in which proceedings are brought for the contravention.
The proviso requires the authorised officer to return the seized account or record to the person from whom it was seized if no proceeding is brought within six months from the date of seizure for the contravention disclosed by that account or record.
Meaning and legal effect of Section 24
Section 24 does not create a general power to seize accounts or records without the statutory sequence contemplated by the Act. The provision is linked to an inspection under Section 23. After that inspection, the inspecting officer must have reasonable cause to believe that the material reveals a contravention of the FCRA or another law relating to foreign exchange before exercising the power of seizure.
1. Inspection under Section 23 comes first
Section 23 empowers inspection where the Central Government, for reasons recorded in writing, has grounds to suspect contravention of the Act and authorises the inspecting officer. Section 24 operates after inspection of the account or record referred to in Section 23.
2. Reasonable cause to believe is required
The inspecting officer must have reasonable cause to believe that a provision of the FCRA or another law relating to foreign exchange has been or is being contravened. This statutory condition connects the seizure to suspected legal non-compliance disclosed through the inspected material.
3. Seized material may be produced in proceedings
The seized account or record may be produced before the court, authority or tribunal in which proceedings are brought for the relevant contravention. The provision therefore links seizure with proceedings concerning the suspected contravention.
4. Six-month safeguard for return of records
The proviso creates an important time safeguard. If no proceeding is brought within six months from the date of seizure for the contravention disclosed by the seized account or record, the authorised officer must return it to the person from whom it was seized.
Section 24 at a glance
- Law: Foreign Contribution (Regulation) Act, 2010.
- Chapter: Chapter V - Inspection, Search and Seizure.
- Subject: Seizure of accounts or records.
- Precondition: Inspection of an account or record referred to in Section 23.
- Threshold: Reasonable cause to believe that the FCRA or another law relating to foreign exchange has been or is being contravened.
- Use of seized material: Production before the court, authority or tribunal where proceedings are brought.
- Return rule: The account or record must be returned if no proceeding is brought within six months from the date of seizure for the disclosed contravention.
Related FCRA provisions
For the statutory sequence, read Section 23 - Inspection of accounts or records before Section 24. The following provisions deal with seizure of articles, currency or security, disposal, procedure and confiscation.
This page is an explanatory legal reference. For the authoritative text and current FCRA services, consult the official India Code and Ministry of Home Affairs resources linked in the sidebar.