GULSHAN AHUJA Vs. UNION OF INDIA

JUDGEMENT

(1.) The action taken by the competent authority under the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 (hereinafter referred to as SAFEMA) against the properties held by or on behalf of Hari Kishan Sarin has given rise to the present proceedings. The petitioners are impugning the decision of both the competent authority and the appellate authority forfeiting the property in question.

(2.) SAFEMA was enacted to provide for forfeiture of illegally acquired properties of smugglers and foreign exchange manipulators, whether such property is held in their own name or in the name of their relatives, associates and confidants. Section 2(1) makes provisions of the Act applicable to persons specified in sub-section (2). Sub-section (2) defines "every person" and clause (b) stipulates that the same includes a person in respect of whom an order of detention has been made under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (hereinafter referred to as 'the COFEPOSA Act'). Clauses (c), (d).and (e) of sub-section (2) of Section 2 provide that the person referred to in sub-section (1) includes a relative of such a person, associate of such a person and any holder of any property which was at any time previously held by such a person.

(3.) In terms of explanation 2 to the said Section, "relative" includes any lineal ascendant or descendant of the person which would thus include the mother of such a person.