VINOD KUMAR CHAWLA Vs. UNION OF INDIA

JUDGEMENT

(1.) This petition under Articles 226 and 227 of the Constitution of India has been filed challenging the order of the Joint Secretary to the Government of India dated 12.2.1997 passed under Section 3(1) of the Conservation of Foreign Exchange & Prevention of Smuggling Activities Act, 1974 (for short "the Act").

(2.) Briefly, the facts as alleged in the grounds of detention are that the Directorate of Revenue Intelligence, New Delhi (DRI) had received information that the petitioner was indulging in large scale evasion of customs duty by importing consumer electronic goods at grossly under-invoiced prices and by circumventing Import and Export Policy and remitting payments for the same through illegal channels, the goods being computer accessories, connectors, cables, etc. imported through his various firms/concerns, namely, (1) M/s. Connectronics and Cables Pvt. Ltd., New Delhi (CCPL), (2) M/s. Life Electronics Pvt. Ltd., Noida, (3) M/s. Wings Electronics, Noida and (4) M/s. Mobican Electronics, New Delhi.

(3.) On the basis of the said information, the officers of the DRI conducted simultaneous searches on 20.12.1996 at seven residential/business/factory premises of the petitioner and his aforesaid concerns. As a result of the searches, several incriminating documents and several goods like speakers, cabinets, connectors and AT&T cables of foreign origin were recovered. Statements of petitioner were recorded on 19.12.1996, 20.12.1996 and also on 30.1.1997. Further searches were also made on 30.12.1996 and some more goods of foreign origin were recovered. The details of the goods seized and the extent of excise duty evasion has been noticed in the grounds of detention served on the petitioner. On the basis of the material collected, the Joint Secretary to the Government of India made the impugned order dated 12.2.1997 under Section 3(1) of the Act. Simultaneously, the grounds of detention and the list of documents relied were also drawn. This notice, however, could be served only on 12.3.1998 as the petitioner is alleged to have been evading its service and was absconding.