RAMESH GUPTA Vs. UNION OF INDIA

JUDGEMENT

(1.) By order of detention dated 29th August, 1989 made by the Joint Secretary to the Government of India, Ministry of Finance (Department of Revenue) in exercise of powers conferred by Section 3(1) of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974, (for short 'the Act') petitioner has been ordered to bedetained with a view to preventing him from acting in any manner prejudicial to the augmentation of foreign exchange. Briefly the facts emerging from grounds of detention are these :-

(2.) On 2nd May, 1989 the officers of Punjab Police searched the business premises of M/s. Golden Silk Stores, Jullundur. As a result of the search, documents, foreign currency and Indian currency, as Mentioned in the grounds of detention, were recovered and seized, immediately, the officers of the Punjab Police informed about the said seizure to Jullundur Zonal office of Enforcement Directorate and as a follow up, the seized Indian currency foreign currencies and documents were taken over from Punjab Police and S/Shri Avinash Chander, Rakesh Kumar, Raj Pal and Ramesh Kumar who were present at the time of seizure in the premises of M/s. Golden Silk Store were summoned under Section 40 of the Foreign Exchange Regulation Act, 1973. In statement dated 2nd May 1989 Sh. Ramesh Kumar Mutal. inter- alia, staled that for last six months he has been working on the monthly salary of Rs. 550.00 at detenu's shop M/s. Durga General Store. Goshala Bazar, Hoshiarpur; that detenu has been doing the business of foreign currency for many years and some years ago detenu was earlier detained under COFEPOSA ; that as per detenu's instructions he goes from village to village and purchases foreign exchange from those people who visit India from abroad and that the Indian currency is provided to him by detenu and the foreign currency so purchased is handed over to the detenu. The particulars of certain villages and persons from whom the foreign currency was purchased were also given in the statement of Sh. Ramesh Kumar Mittal.

(3.) The statement of the detenu was also recorded under Section 40 of the Foreign Exchange Regulation Act, 1973. In view of the facts mentioned in the grounds of detention the detaining authority arrived at the conclusion that the petitioner has been indulging in authorised transaction in foreign exchange in violation of the provisions of the Foreign Exchange Regulation Act, 1973 and that unauthorised transactions indulged by the petitioner have affected the foreign exchange resources of the country adversely. The validity of the order of detention is in the present petition.