Section 37 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 37 is headed "Power of search, seizure, etc." Its text does three things. It says the Director of Enforcement and officers not below the rank of Assistant Director shall take up for investigation a contravention referred to in section 13. It lets the Central Government authorise other officers to investigate. And it gives the officers in the first group the like powers of income-tax authorities.
Section 37(1) says the Director of Enforcement and officers of Enforcement not below the rank of Assistant Director shall take up for investigation the contravention referred to in section 13. Section 37(2) lets the Central Government, by notification, authorise officers of the Central Government, a State Government or the Reserve Bank not below the rank of Under Secretary to the Government of India to investigate it too. Section 37(3) gives the officers in sub-section (1) the like powers conferred on income-tax authorities, subject to the limitations in that Act.
About this article
This article is based on the consolidated text of the Act consulted (amendments shown up to Act 50 of 2019). Later amendments should be checked. Section 37 is printed without a footnote of amendment. The Directorate and its officers are established by section 36, explained in our article on sections 36 and 38. For the practical side of an enforcement enquiry, see our guide on the Enforcement Directorate and FEMA. If you are facing an investigation, our legal consultation team can help you prepare.
What "search, seizure, etc." means in this section
The heading of section 37 mentions search and seizure. The three sub-sections do not use the words "search" or "seize". They speak of investigation, and of the "like powers" of income-tax authorities. The Act does not list those powers; it refers to another Act for them, and any reading of what an officer may do must start from that Act as it stands now.
This is worth knowing because headings are not the operative text. A reader who looks only for a list of search and seizure powers in section 37 will not find one; the content lies in the incorporation by reference in sub-section (3), and in section 37A for the special case of assets held outside India, which is explained in our article on section 37A.
Section 37(1): the first route
The Director of Enforcement and other officers of Enforcement, not below the rank of an Assistant Director, shall take up for investigation the contravention referred to in section 13.
- Who: the Director of Enforcement (section 2(k)) and other officers of Enforcement, from the rank of Assistant Director upward. Officers of Enforcement are those of the Directorate established by section 36(1).
- What: "the contravention referred to in section 13". Section 13(1) speaks of contravening any provision of the Act, or any rule, regulation, notification, direction or order issued in exercise of the powers under it, or any condition subject to which the Reserve Bank issued an authorisation, and of the penalty upon adjudication; see our post on contravention and penalties under section 13.
- How firmly: the word is "shall". The sub-section is not framed as a discretion.
The sub-section does not say when an investigation begins, on what information, or how it ends. Those matters are not in section 37.
Section 37(2): the second route
Without prejudice to sub-section (1), the Central Government may also, by notification, authorise any officer or class of officers in the Central Government, State Government or the Reserve Bank, not below the rank of an Under Secretary to the Government of India, to investigate any contravention referred to in section 13.
| Point | Section 37(1) | Section 37(2) |
|---|---|---|
| Who | Director of Enforcement and officers of Enforcement not below Assistant Director | Any officer or class of officers in the Central Government, State Government or Reserve Bank, not below Under Secretary to the Government of India |
| How they get the task | By the Act itself ("shall take up") | By notification of the Central Government |
| What | Investigate the contravention referred to in section 13 | Investigate any contravention referred to in section 13 |
| Minimum rank | Assistant Director | Under Secretary to the Government of India |
"Notification" means notification in the Official Gazette (section 2(t)). Section 37(2) is an enabling power ("may"): whether a particular class of officers has been authorised is a matter of the notifications, which are not part of the Act. The Reserve Bank is named in the sub-section as a place from which officers may be drawn; this is separate from the Reserve Bank's own powers of inspection of authorised persons, which are in section 12.
Section 38 is a different mechanism. It allows the Central Government to authorise customs, central excise, police and other officers to exercise stated powers of officers of Enforcement by order; compare it in our article on sections 36 and 38.
Section 37(3): the like powers of income-tax authorities
The officers referred to in sub-section (1) shall exercise the like powers which are conferred on income-tax authorities under the Income-tax Act, 1961 (43 of 1961) and shall exercise such powers subject to such limitations laid down under that Act.
Points to note:
- Only sub-section (1) officers. The text speaks of "the officers referred to in sub-section (1)". It does not say, in terms, that officers authorised under sub-section (2) have those powers. Section 38(2) gives the like powers to officers empowered under section 38(1).
- Powers and limits travel together. The incorporation takes the powers and also the limitations laid down in the Income-tax Act. A step an income-tax authority could take only on certain conditions is, for these officers, available only on those conditions.
- No section number is given. The reference is quoted as printed. The reader should check the current law for the corresponding provisions of the Income-tax Act, 1961; this article names none. For income-tax matters, see our income-tax guides.
Because the Act borrows the powers instead of listing them, it does not tell a business what an officer may ask for or take. That has to be read from the borrowed law as it applies now. If an officer exercises a power at your premises, ask under which provision and which authorisation he acts.
Example. The Directorate of Enforcement takes up for investigation a suspected contravention by Harbour Trade Links Pvt Ltd, a hypothetical importer. The officer in charge is of the rank of Deputy Director, which is not below Assistant Director, so section 37(1) applies and he must take it up. Another officer, from a State Government office, has been authorised by a notification under section 37(2) and holds a rank not below Under Secretary to the Government of India; he too may investigate the same kind of contravention. The company's concern is what the Deputy Director may do. Section 37(3) gives him the like powers of an income-tax authority, and only within the limits of that Act, which the company's adviser reads from the current law.
What the Act does not say
- It does not list any power of search or seizure in section 37 itself.
- It does not state what happens after an investigation; adjudication is in section 16.
- It does not say how a person is to be told of an officer's authority.
- It does not say that officers under sub-section (2) have the powers in sub-section (3).
Need help with an investigation?
An investigation under section 37 can involve documents, statements and questions of authority. Our legal consultation team can help you review the position, keep records and respond in an orderly way.
Key takeaways
- Section 37(1): officers of Enforcement not below Assistant Director shall take up for investigation the contravention referred to in section 13.
- Section 37(2): the Central Government may, by notification, authorise officers of the Central Government, a State Government or the Reserve Bank not below Under Secretary rank.
- Section 37(3): the officers in sub-section (1) have the like powers of income-tax authorities, subject to the limits of that Act, as printed.
- The heading mentions search and seizure; the text does not list those powers.
- Check the current law of the borrowed Act for the actual powers.
Read next
- Sections 36 and 38: the Directorate of Enforcement and the empowering of other officers
- Section 37A: seizure of equivalent assets for foreign holdings
- Section 39: presumption as to documents
- Enforcement Directorate and FEMA: Powers
Disclaimer: Based on a consolidated text of the Foreign Exchange Management Act, 1999 showing amendments up to Act 50 of 2019, as consulted on 2 October 2026. Limits, forms, timelines and procedures are set by rules, regulations and Reserve Bank directions made under the Act; they change from time to time and are not covered here. Later amendments should be checked. This article is general information, not legal advice; check the official text before acting.