If it comes to the notice of the Director General of Foreign Trade or he has reason to believe that an export or import has been made in a manner gravely prejudicial

1. to the trade relations of India with any foreign country;
   
   
2. to the interest of other persons engaged in exports or imports;
   
   
3. has brought disrepute to the credit or the goods of the country;
   
   

The Director General Foreign Trade may take action against the exporter or importer concerned in accordance with the provisions of the Act, the Rules and Orders made thereunder and this Policy.