S KRISHNA Vs. JOINT SECRETARY COFEPOSA

JUDGEMENT

(1.) BY this writ petition filed under Article 226 of the Constitution of India, the petitioner has sought for a declaration that the detention of his friend Sri. Firoz Khan @ Feroz Khan, S/o Yusuf Khan, resident of Flat No. 802, Rhine Apartments, Sturrock Road, Falnir, Mangalore- 575001, (hereinafter referred to as 'Detenue' for short) pursuant to the order of detention No. F.No.673/2010-Cus.VIII dated 25.02.2010 issued by the Joint Secretaiy of COFEPOSA, Central Economic Intelligence Bureau, Department of Revenue, Ministry of Finance, Delhi, as illegal and void ab initio and to direct release of the detenue- Firoz Khan @ Feroz, S/o. Yusuf Khan, who has been lodged in Central prison, Bangalore.

(2.) THE petitioner has averred that he is a resident of Bangalore City and the detenue is his friend, as such, he is interested in the life, welfare and personal liberty of the detenue. According to the petitioner, the detenue was taken into custody on 27.02.2010 and since then he has been in detention in Central Prison, Bangalore and on 02.03.2010, the grounds for detention order dated 25.02.20 10 issued by the Joint Secretary to the Government of India, Ministry of Finance, New Delhi, along with a list of documents relied upon and the copies of the documents referred to in the said list were served on the detenue.

(3.) ACCORDING to the grounds of detention dated 25.02.2010 served on the detenue, a copy of which is produced as per Annexure-A, the Zonal Office of Directorate of Enforcement, Bangalore, received information that the detenue is indulging in making and receiving hawala payments upon receipt of instructions from the persons resident in Dubai and such Hawala payments were being made from his business as well as residential premises. On the basis of such information, the officers of the Enforcement Directorate, Bangalore, conducted searches in both the business and residential premises of the detenue on 29.09.2009 and 30.09.2009. During the search of the business premises bearing shop No.3, 1 Floor, Parthasarathy Complex, C.T. Street, Bangalore, Indian Currency of Rs.1 Crore 20 lakhs along with certain documents were seized under mahazar/ panchanama dated 29.09.2009 and on search of business premises bearing No.18,2nd Floor, Shalimar Complex, Mangalore, conducted on 30.09.2009 certain documents were seized under mahazar dated 30.09.2009. During the course of search of business premises on 29.09.2009, the officers of the Enforcement Department. Bangalore, found three persons by name Sri. Shoeb Aziz Dhandh, Sri. Raju Bhai @ Rajesh and Sri. Puraram, standing outside the shop. On questioning, the detenue said to have told the officers of the Enforcement Department that the Indian Currency about 60 lakhs stacked inside wooden cupboard was received by him from a party at Indira Nagar, Bangalore, through his employee Mohammed Sayeed @ Babu and three bags containing Rs.30 lakhs, Rs.15 lakhs and 15 lakhs respectively were received by him from three persons who were standing outside the shop. On questioning by the officers, those three persons, who were standing outside the shop, and the employee of detenue admitted to have delivered the amounts as stated by the detenue. Thereafter, the statements of the detenue was recorded by the Assistant Director of Enforcement on 29.09.2009, in which interalia he said to have told that as per the instructions of one Jaffer resident of Dubai he was collecting the amounts from various persons and handing over various amounts to different persons. The detenue said to have made further statements on 30.09.2009. As indicated in the grounds of detention, show cause notices were issued to several persons and organizations disclosed by the detenue in his statements. Searches were conducted, documents were recovered and seized. Based on the documents collected, the authorities were of the opinion that the detenue has been indulging in prejudicial activities of receiving and making hawala payments upon instructions from persons resident outside India in contravention of provisions of Foreign Exchange Management Act and relevant rules and regulations made thereunder. Thereafter, the materials collected were placed before the Detaining Authority namely respondent No.1, who on consideration of those materials and on being satisfied that the detenue has been indulging in activities which have adversely affected the augmentation of the Foreign Exchange and having regard to his high potentiality and propensity to engage himself in such prejudicial activities, being of the view that unless the detenue is detained, he is likely to continue in the aforesaid prejudicial activities in future also, directed his detention under the provisions of COFEPOSA with a view to prevent him in future from acting in any manner which is prejudicial to the augmentation of Foreign Exchange. Pursuant to the order of detention passed on 25.02.2010, the detenue was apprehended on 27.02.2010 at Mangalore. and he was lodged in the Central Prison, Bangatore, as per the order of detention.