S LALITHA Vs. UNION OF INDIA

JUDGEMENT

(1.) HEARD learned Counsel for Petitioners. These matters have been posted for hearing after notice of motion. Since I was of the opinion that any interim order against the impugned notices would delay disposal of proceedings which, in the public interest, should be disposed of as expeditiously as possible, I have heard the learned Counsel for the petitioners on the merit of the Writ Petitions and since after hearing the learned Counsel for the petitioners I have come to the conclusion that the petitions are not maintainable, I do not propose to postpone disposal of these cases to any future date.

(2.) THE petitioners herein have questioned the validity of notices issued under Section 6 of the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976.

(3.) THE Act states that its provisions shall apply only to the persons specified in sub-section (2) of Section 2 which in turn covers every person who has been convicted under the Sea Customs Act, 1878, or the Customs Act, 1962, of an offence in relation to goods of a value exceeding one lakh of rupees; or who has been convicted under the Foreign Exchange Regulation Act, 1947, or the Foreign Exchange Regulation Act, 1973Companies Act, 1956, of which such person had been or is a member, partner or director; any individual who had been or is a member, partner or director of an association of persons, body of individuals, partnership firm, or private company within the meaning of the Companies Act of which such person had been or is a member, partner or director of such association, body, partnership firm or private company; any person who had been or is managing the affairs, or keeping the accounts of any association of persons, body of individuals, partnership firm, or private company referred to above, and the trustee of any trust where the trust has been created by such person or the value of the assets contributed by such person to the trust amounts, on the date on which the contribution is made, to not less than twenty per cent, of the value of the assets of the trust on date. In addition to the above, "associate" in relation to a person also means, where the competent authority, for reasons to be recorded in writing, considers that any properties of such person are held on his behalf by any other person, such other person. THE provision with respect of definitions also defines 'illegally acquired property' in relation to any person to whom the Act applies, thus:-" * (c) 'legally acquired property', in relation to any person to whom this Act applies, means:- (i) any property acquired by such person, whether before or after the commencement of this Act, wholly or partly out of or by means of any income, earnings or assets derived or obtained from or attributable to any activity prohibited by or under any law for the time being in force relating to any matter in respect of which Parliament has power to make laws; or (ii) any property acquired by such person, whether before or after the commencement of this Act, wholly or partly out of or by means of any income, earnings or assets in respect of which any such law has been contravened; or (iii) any property acquired by such person, whether before or after the commencement of this Act, wholly or partly out of or by means of any income, earnings or assets the source of which cannot be proved and which cannot be shown to be attributable to any act or thing done in respect of any matter in relation to which Parliament has no power to make laws; or (iv) any property acquired by such person, whether before or after the commencement of this Act, for a consideration, or by any means, wholly or partly traceable to any property referred to in sub-clauses (i) to (iii) or the income or earnings from such property; and includes: - (A) any property held by such person which would have been, inrelation to any previous holder thereof, illegally acquired property under this clause if such previous holder had not ceased to hold it, unless such person or any other person who held the property at any time after such previous holder or, where there are two or more such previous holders, the last of such previous holders is or was a transferee in good faith for adequate consideration;(B) any property acquired by such person, whether before or after the commencement of this Act, for a consideration, or by any means, wholly or partly traceable to any property falling under item (A), or the income or earnings there from".