HARISH BHATIA Vs. UNION OF INDIA

JUDGEMENT

(1.) This writ petition has been brought under Article 226 of the Constitution of India read with Section 482, Code of Criminal Procedure for issuance of a writ of habeas corpus or any other appropriate order for quashment of detention order dated February 13, 1989 passed by respondent No. 2 under Section 3(1) of the COFEPOSA Act with a view to prevent the petitioner from acting in any manner prejudicial to the augmentation of foreign exchange.

(2.) The facts leading to the passing of the detention order, in brief, are that on receiving a secret information that petitioner was indulging in the sale and purchase of foreign exchange on a large scale and he was likely to sell substantial foreign exchange on January 5, 1989 at about 3.15 P.M. to some person at the business premises of one Naresh Aggarwal at G-26, first floor (near entrance). South Extension Market, Part I, New Delhi, the petitioner on the said date and time and at that place was apprehended by the officers of the Enforcement Directorate and personal search of the petitioner was carried under Section 34 of the Foreign Exchange Regulation Act 1973 resulting in seizure of 5,850 US dollars, Indian Currency of Rs. 500.00 and some documents as mentioned in the Panchnama. The business premises of Naresh Aggarwal and residential premises of the petitioner were searched and some dollars and documents were also recovered. The petitioner stated to have made a voluntary statement under Section 40 ofthe FERA Act, 1973 in which he admitted that he had purchased the aforesaid U. S. dollars at the rate of Rs. 18.00 per dollar and was to sell the same at the rate of Rs. 18.20 per dollar and that the calculations appearing at Page 6 of the document seized from his residential premises represent foreign exchange purchased by him and entries have been later on struck out by him and he reproduced the said entries with regard to the foreign exchange and explained the abbreviations appearing in those entries. He also admitted to have in this way purchased and sold foreign exchange worth rupees for lac earlier. He admitted that he had no permission from Reserve Bank of India for purchase and sale of foreign exchange and he explained that two visiting cards of M/s. Gift Hut, D-39, New Delhi South Extention Part II which have been seized pertain to one Shri Bhandari doing Vidio business with whom he did a little sale and purchase of foreign exchange. The petitioner was arrested and was produced before the Magistrate who remanded him to judicial custody but in the meanwhile petitioner moved the application for bail on January 6, 1989 and on the following day the petitioner was granted bail with directions to join investigation whenever required and should not leave the country except with prior permission of the Court.

(3.) It is averred that petitioner gave another statement on January 9, 1989 and explained the entries appearing at the reverse ofthe Visiting Card of V.K. Associate. On 17th January 1989, the business premises and residen- tial premises of different persons including one. of Surinder Vasudeva were searched. One diary was recovered from the premises of Surinder Vasudeva and some documents were recovered from his business premises i.e. M/s Vasudeva Publicity Service. Statement of one Aditya Kumar Bhandari was recorded who admitted that he had sold foreign exchange worth 1500 U.S. dollars to the petitioner and later on he retracted his previous statement. Surinder Vasudeva could not be contacted and inspite of summons being issued to him for different dates, he did not appear on one pretext or the other for giving the statement. On January 23, 1989, petitioner is stated to have given another statement to the authorities in which be admitted that 6 U.S. dollars recovered from his house were from the unspent amount of U.S. 500 dollars obtained by him on June 30, 1987. Vide letter dated February 1, 1989, petitioner is stated to have retracted his confession earlier made and levelled allegations against the officers of having procured his false statements.