SATHYANARAYANA CO Vs. ASSISTANT DIRECTOR

JUDGEMENT

(1.) A sum of Rs.1,05,70,000/- in the form of Indian Currency was deposited by the petitioner in various instalments pursuant to the notice issued by the respondents under Section 33(2) of the Foreign Exchange Regulation Act, 1973 (hereinafter referred to as the Act) dated 20.7.1996. The last of such instalment was received by the Department on 2.1.1997. An order dated 7.1.1997 was communi cated to the petitioner extending the time limit for retention of the documents/objects seized from the petitioner and in this order, the petitioner's name and the deposits made to the tune of Rs.1,05,70,000/- is mentioned. A show cause notice under Section 51 of the Act was issued on 16.7.1997. These are the crucial dates for the purpose of this case.

(2.) On 17.7.1996, a team of officers of the Enforcement Directorate proceeded to the premises of M/s. Pyramid Enterprises, which resulted in seizure of Indian currency and other allegedly incriminating documents. The residential premises of the Director and Partner of the said Pyramid Enterprises were also searched. From the statements recorded from the aforesaid persons, the respondents found that the petitioner had received deposits in the names of foreign nationals and it is in these circumstances that the notice under Section 33(2) of the Act was issued.

(3.) According to the learned senior counsel appearing on behalf of the petitioner, the respondents did not have the power to retain the documents contrary to the provisions of Section 41 of the Act and therefore, the petitioner has sought for a mandamus for return of the documents. The Explanation to Section 33 of the Act shows that the word 'document' used in Sections 33, 34 and Sections 36 to 41 includes Indian currency, foreign exchange and books of account.