RAJESWARI Vs. JOINT SECRETARY TO GOVERNMENT GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE NEW DELHI

JUDGEMENT

(1.) THE petitioner herein challenged the order dated 14th July, 1999, passed by the 1st respondent, under the provisions of Section 3(1) of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974, (for short "the COFEPOSA ACT"), directing the detention of her husband K.N. Thiagarajan, son of K.V. Nagendran, resident of Salem, Tamil Nadu.

(2.) THE grounds, in support of the order, suggest that on a tip -off, the officers of the Customs Central Intelligence Unit conducted vehicular check on 28.1.1999 at night at Thoppur Check Post, Kottu Road, Thoppur and stopped a white colour Contessa Car, bearing Registration No.TN -72 -A -3004, coming from Dharmapuri to Salem. The detenu and his driver Madhavan were the only occupants. There was no luggage. When questioned, the detenu gave contradictory replies. Since there was no sufficient light and safety, the car was brought to the Customs Office at Salem for a detailed scrutiny. The officers enquired from both the occupants as to whether they had any concealed gold bars. The occupants replied in negative. Thereafter, the car was searched thoroughly and it was found that inside the air -filter of the car four packets were placed, which were covered by a newspaper and a nylon rope. Each packet was found containing ten gold bars. On enquiry, the occupants stated that they were not having any customs duty paid document or any valid document for licit transportation/possession/transportation of gold bars in question. The total weight of the gold was 4665.600 gms and it was valued at Rs.20,60,000. The gold bars were seized on the reasonable belief that the gold bars, which were of foreign origin, were smuggled into India without payment of custom duty. The white colour contessa car was also seized.

(3.) THE grounds make further reference to the statement dated 28.1.1999 of the detenu, recorded under Section 108 of the Customs Act, wherein the detenu admitted that he was a broker in purchasing and selling of foreign made gold bars and that he used to go to Bangalore once in a week to buy foreign made gold bars from one Parasmal and Ramesh. It was revealed that the detenu did not know the address of the two persons but knew their residences and telephone numbers which were given. It was also admitted that the said Parasmal was known to the detenu through a broker for three months and that the detenu used to get a profit of Rs.150 per gold bar. It was also further suggested that the detenu had gone to Bangalore on 27.1.1999 In the same white colour Contessa Car along with Madhavan and reached the house of Parasmal at 5.00 PM and after waiting for about two hours purchased 40 gold bars of foreign origin at the rate of Rs.50,700 by paying Rs.20,28,000, which amount the detenu carried with him from Salem and that the Parasmal did not give any duty paid receipt or document. It was also further revealed that the detenu concealed the gold, bars in the air -filter of the car and while returning he was intercepted by the Customs Officers and, on enquiry, the detenu had replied that he did not have any foreign made gold bar and, therefore, the car was searched and the gold bars were seized which were found concealed in the air -filter of the car.