COMPETENT AUTHORITY AND ADMINISTRATOR Vs. NAVITA AGGARWAL

JUDGEMENT

(1.) The petitioner "Competent Authority, Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 (hereafter referred to as "the Competent Authority") has filed the present petition under Article 226 and 227 of the Constitution of India impugning an order dated 14.07.2017 (hereafter "the impugned order") passed by the Appellate Tribunal (hereafter "the Tribunal") constituted under Section 12 of the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 (hereafter "the Act"). By the impugned order, the Tribunal has allowed the respondent's appeal against an order dated 14.03.2017 passed by the Competent Authority under Section 7(1) and 7(3) of the Act, inter alia, forfeiting all rights, title and interest in the house property bearing no.A3/88, Paschim Vihar, New Delhi (hereafter "the said property").

(2.) Mr Arun Bhardwaj, learned counsel appearing for the petitioner referred to the said order dated 14.03.2017 and submitted that the Competent Authority had found that the respondent had been unable to substantiate the source of funds used for purchasing the said property and, therefore, the Competent Authority had forfeited the said property. He submitted that the impugned order, which had the effect of releasing the said property from forfeiture, was palpably erroneous.

(3.) The Competent Authority had sought to forfeit the said property as the benami property belonging to one Sh. Mahesh Chauhan alias Bunty son of Sh. Inderjeet Singh Chauhan. It is stated that on 09.01.1996, the Lt. Governor, NCT of Delhi had passed an order of detention against Sh. Mahesh Chauhan @ Bunty, under the provisions of Section 3(1) of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (hereafter "COFEPOSA"). The allegation against Sh. Mahesh Chauhan was that he was engaged in smuggling gold to India. It is stated that on 28.08.1995, one Sh. Harpal Singh was intercepted by the custom officials on his arrival from Dubai and thirty-five gold biscuits of foreign markings were recovered from Sh. Harpal Singh and the contraband was seized by the custom authorities under Section 110 of the Customs Act, 1962. It is stated that Sh. Harpal Singh was smuggling gold for Sh. Mahesh Chauhan, who was waiting at the airport at the material time to receive the contraband from Sh. Harpal Singh. He was also apprehended. It is claimed that Sh. Mahesh Chauhan made a voluntary statement under Section 108 of the Customs Act, 1962 admitting that he had entered into an arrangement with his cousin to smuggle the gold into the country from Dubai. He admitted that Sh. Harpal Singh had agreed to smuggle the goods for them and all expenses towards his travel to Dubai and back been paid by Sh. Mahesh Chauhan. The residential address of Sh. Mahesh Chauhan was reflected as A-3/88, Paschim Vihar, New Delhi (the said property).