G K KANTHARAJA SETTY Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) The petitioner is the father of the detenu - G.K. Nagaraj. By an order dt.18-2-1987 made under Sec.3(1)(iv) of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA Act) the said Nagaraj was detained by the Government of Karnataka. The grounds of detention may be summarised thus :-

(2.) On 17-11-1987 Officers of the Directorate of Revenue Interlligence (DRI) having gathered information that the detenu was likely to dispose of foreign marked gold in Chickpet area of Bangalore, shadowed his movement and apprehended him at 13.30 hours near the Avenue Road, Chickpet Circle. In the presence of the witnesses, the detenu Admitted having possessed foreign marked gold. In view of the large crowd gathered at the said public spot, the Officers took him to their office at Indiranagar along with some witnesses. In the office of the DRI at Indiranagar, the detenu was searched and 8 gold biscuits with foreign markings kept in the pant pockets were recovered. The detenu did not have any evidence to show his licit possession of the said gold biscuits. A certified goldsmith testified, after applying the touch-stone method, that the gold biscuits were of foreign origin, having purity of 24 cts. These are also reflected in the mahazar drawn, duly attested by the witnesses and the said goldsmith. Thereafter the detenu was questioned under S. 108 of the Customs Act and he made his statement.

(3.) The detenu has stated inter alia that his elder brother Suryaprakash and himself started a shop in the Temple Street and in the said shop both of them were doing business. He stated that they did not have any gold dealer's licence. The ostensible business was in old silver and silver ornaments. The detenu admitted again, having possessed of the gold biscuits seized from him. According to him his brother gave him the said 8 gold biscuits with foreign markings and asked him to sell the same among the local gold dealers. After enquiring the prices in 3 or 4 shops, he proceeded to sell them and the last shop he visited was Rajatha Jewellers at Avenue Road, who refused to buy the gold biscuits. Immediately thereafter when the detenu came to the Avenue Road Circle, he was apprehended by the DRI Officers. According to the detenu, he had decided to sell each biscuit for Rs. 27,758/-, the price which his brother had quoted. After selling, the money had to be handed over to his brother.