JAGANNATHMEHROTRA Vs. UNION OF INDIA

JUDGEMENT

(1.) This is a writ petition where by the petitioner challenges the order of his detention dated July 5, 1997 issued by the Joint Secretary, Government of India, under Section 3(1) of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (for short 'the Act'). The allegations against the petitioner are as follows :

(2.) The Enforcement Directorate, Delhi Zone, New Delhi, on an information intercepted one Natwar Dalmia at the Indira Gandhi International Airport. New Delhi, while he was about to board a flight to Singapore. On the search of the person of Natwar Dalmia, US $ 50,000.00 and DM l,25,000.00 were recovered. Natwar Dalmia made a statement under Section 40 of the Foreign Exchange Regulation Act according to which foreign currency was purchased by him from the petitioner. As a result of his statement, the premises of the petitioner were searched by the officers of the Enforcement Directorate. The search led to seizure of Rs..23,00,000.00 and one instrument of DM 2150. Besides, certain documents were also seized. While the search was in progress one Mohd. Mustaq allegedly came to the premises of the petitioner and from his personal seareh:US $ 400 were recovered.

(3.) Petitioner's statement was recorded under Section.40 of the FERA. On the basis of the material mentioned in the grounds of detention, the Joint Secretary, Government of India, issued the impugned detention order against the petitioner under Section 3(1) of the Act.