TEJAS R. DOSHI Vs. COMPETENT AUTHORITY

JUDGEMENT

(1.) By way of the present petition, filed under Article 226 of the Constitution of India, the petitioners have challenged the orders passed by the respondent nos. 1 and 2 on 3/10/2011 and 30/1/2012 respectively by which the residential property situated at 3rd Floor, F/301, Malabar Hill Society, Surat came to be forfeited under the provisions of Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 (hereinafter referred to as 'SAFEMA').

(2.) The brief facts giving rise to filing of the present petition are as under:

(3.) Being aggrieved and dissatisfied with the same, the petitioner has filed the present petition under article 226 of the Constitution of India mainly contending that the petitioner was not joined as a party to the proceedings and the relevant documents were not supplied to the petitioner at the time of the appeal. Both the authorities have lost sight of the fact that the petitioner is the transferee of the property in good faith for adequate consideration and the petitioner has taken due care and diligence before purchasing the property. The petitioner had no occasion to learn about the pendency of the proceedings, even while carrying out the search at the office of the revenue authorities and as the petitioner is a bona fide purchaser of the said property with full consideration, is entitled to protection under the Transfer of Properties Act as also under the provisions of SAFEMA. The impugned orders erroneously declare the property to be 'illegally acquired property' without adverting to the exclusion of the definition of the property in terms of the definition under Sec. 3(1)(c) of the SAFEMA which is held by the petitioner who is a transferee in good faith. The impugned orders are not tenable and the petitioner has filed the petition praying to annul the impugned orders.