MANOHAR LAL BHATIA Vs. UNION OF INDIA

JUDGEMENT

(1.) This judgment will dispose of Criminal Writ No. 19 of 1985 and Criminal Writ No. 21 of 1985, which have been filed by father and son challenging the orders passed in regard to their detention by the Additional Secretary to the Government of India on June 28, 1984 under S. 3(1) of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 in order to prevent each one of them in acting in any manner prejudicial to the augmentation of foreign exchange.

(2.) An information was received in the month of Dec. 1983 by the Enforcement Directorate, Delhi Zonal Office to the effect that petitioners were indulging in illegal sale and purchase of foreign exchange as well as in arranging compensatory payments on a large scale for the last many years. Premises situated at B-4/29-B, Ashok Vihar Phase II, Delhi were searched by the officers of the Enforcement Directorate on Dec. 13, 1983. As a result of the search a large number of documents and a sum of Rs. 20,000.00 were recovered from the said premises stated to be the residential premises of Manohar Lal Bhatia and his family. Statements were recorded on diverse dates of the two petitioners and explanations were asked for in regard to the seized money and the alleged transactions evidenced by the documents seized. The transactions pertained to 'Hawala' transactions and as well as dealing in foreign exchange. Premises of certain other parties were also searched. Under S. 37 of the Foreign Exchange Regulation Act, statements of certain other parties were also recorded. On the basis of the material so obtained which showed alleged illegal dealings involving foreign exchange continuously for many years, the petitioners were detained by the aforesaid orders. Grounds of detention as well as copies of documents relied upon were served on them.

(3.) The petitioners challenged their detention and continued detention and obtained rule nisi from this Court. By way of return, affidavits in each case have been filed sworn by Shri A. K. Agnihotri, Undersecretary, Ministry of Finance, Department of Revenue, Government of India, New Delhi. Petitioners were given opportunity to file additional affidavit to which also counter- affidavit was filed by respondents sworn by Shri A. P. Nanday, Assistant Director, Enforcement Directorate, New Delhi.