AJAY KUMAR JAIN Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner has preferred a writ petition under Article 226 of the Constitution of India and has prayed, inter alia, that the writ of habeas corpus be issued quashing an order of detention dated 31st January, 1991 passed under Section 3(1) of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974, by the Joint Secretary to the Government of India, with a view to preventing him from smuggling goods and also preventing from engaging and transporting, concealing and keeping smuggled goods. Brief facts necessary to dispose of this writ petition arc set out as under- Delhi Zonal Office of Enforcement Directorate received an information that one Mohd. Shakir Khan has been indulging in the purchase of foreign exchange at unauthorised rates and the same is being taken by him to Dubai for sale. Accordingly, on 6.1.91, officers of the Enforcement Directorate, New Delhi mounted surveillance at Indira Gandhi International Airport, New Delhi and when Shri Mohd. Shakir Khan alongwith his baggage was in the queue for clieck-in for flight no.AI-735, he was intercepted and he and his baggage were searched u/s 34 of the Foreign Exchange Regulation Act, 1973. The search of his person and baggage resulted in recovery and seizure of substantial foreign exchange.

(2.) Shri Mohd. Shakir Khan was summoned under Section 40 of the Foreign Exchange Regulation Act, 1973, and his voluntary statement was recorded on 6th/7th January, 1991. He stated that he is an illiterate and on his request his statement was written by an officer of Enforcement Directorate. In his statement, he inter alia deposed as follows:- i) that he and his brothers are running Zakki Hotel, Nizammuddin, New Delhi; ii) that his two sons, viz. Mohd. Yusuf and Azmal are also associated with him in his aforesaid illegal business and they also take foreign exchange to Dubai; iii) that in India the foreign currencies are purchased by him and his sons Mohd. Yusuf and Azmal from S/Shri Murad Khan, Sabir, Ikhiaq, Deepak Mahajan, etc. iv) that you reside in Greater Kailash Part-1 v) that on 6.1.91, while he was going to Dubai, he was intercepted and searched by the officers of Enforcement, resulting in the seizure of foreign exchange as detailed in the panchnama; vi) that the seized foreign currency was to be given to Sharifuddin in Dubai and that he was to return back on the same day by flight on Dubai-Bombay-Delhi sector; vii) that the Dollars have been purchased by him from Murad Pathan @ Rs.21.50 per Dollar and rest of the foreign exchange was purchased by Mohd. Yusuf who will be in a position to state the rates of purchase; viii) that till the date of apprehension he in association with his two sons, viz. Mohd. Yusuf and Azmal have taken foreign exchange to the tune of about Rs.l2 crores to Dubai.

(3.) As a follow-up, residential premises of Mohd. Shakir Khan at T- 380, Hazarat Nizammuddm in Basti, New Delhi was searched on 7.1.91 u/s 37 of FERA, 1973 by the officers of Enforcement Directorate, New Delhi and as a result thereof certain documents were recovered and seized. The business and residential premises of Rajpal Trading Co., 1810, Chandni Chowk, Delhi and at N-149, Greater Kailash I, New Delhi were also searched on 7.1.91 u/s 37 of FERA, 1973 the officers of Enforcement Directorate, New Delhi. However,nothing was recovered and seized as a result of these searches.