ABDUL KHADER Vs. SECRETARY TO GOVT OF INDIA

JUDGEMENT

(1.) THIS writ of Habeas Corpus is filed by the petitioner assailing the detention order dated 13-9-1998 passed by the second respondent under Section 3 (1) of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (hereinafter called 'cofeposa' Act ). 1) The brief facts of the case are that the petitioner is a resident of Bangalore and a business man. On the basis of the information that he was unauthorisedly indulging in foreign exchange transaction as his acts were prejudicial to the conservation and augmentation of foreign exchange, the detention order was passed on 23-9-1998 by the 2nd respondent under the COFEPOSA Act. That order is challenged in the present writ petition.

(2.) THE learned counsel Mr. Kiran S. Javali for the petitioner has contended that even taking the grounds annexed to the detention order are taken to be true and correct, the acts alleged against the petitioner in the impugned order will not cause any prejudice to conservation of foreign exchange of the country. At the most, it may be prejudicial to the augmentation of foreign exchange of the country. The ground urged in the detention order that the acts of the petitioner are prejudicial or loss to the foreign exchange in the country is not mentioned in the grounds of detention order and therefore, he is entitled to be set at liberty, in view of the law laid down by the Apex Court and Bombay High Court.

(3.) THE learned counsel for the respondents Mr. M. V. Vedachala has contended that the conduct of the petitioner in acquiring the foreign exchange within the country from other persons and using the same in the business activities by the petitioner not only cause prejudice to the augmentation of the foreign exchange but also cause prejudice to the conservation of foreign exchange in the country.