He also questioned whether Section 37A powers can be invoked in every case where an alleged violation of Section 4 (dealing with conditions to hold foreign exchange) of the FEMA has been suspected.
“When you put that question, our answer is, it may happen. It is possible,” the Chief Justice mused, in reply.
Raghavan, however, maintained that Section 37A cannot be so invoked, particularly since it does not have any safeguards to guide its application.
“Even in a serious statute like the PMLA, which has international ramifications, which has been upheld by the Supreme Court – even that statute has safeguards,” he added.