S MOHANRAJ Vs. DEPUTY DIRECTOR ENFORCEMENT DIRECTORATE MADRAS

JUDGEMENT

(1.) The petitioner herein in the affidavit in support of the writ petition has stated that in the course of investigation, the respondent seized the passports in H. 214990 and A-138238 on 15-10-1992 under Section 38 of the Foreign Exchange Regulation Act 1973 (hereinafter referred to as the 'Act'). It is further stated that the said passports have not been returned to the petitioner and the petitioner is not in any way connected with the alleged offences under the Act. On the other hand, a counter affidavit has been filed on behalf of the respondent wherein it is stated that the passports were seized under Section 38 of the Act in the course of investigation and there is a prima facie case that the petitioner is involved in violation of the provisions of the Act, and in particular, on investigation into two foreign currency accounts alleged to have been held by the petitioner with UCO Bank, Singapore and the Development Bank, Singapore, and the investigation is not yet completed. It is further alleged that as the seizure was under Section 38 of the Act, the respondent is entitled to retain the seized passports with them without any time limit.

(2.) Mr. B. Kumar, learned counsel appearing on behalf of the petitioner contended that the petitioner is in no way connected with any alleged offences under the Act and in any event, as per Section 41 of the Act, the documents seized ought to be returned within a period of one year before the amending Act of 1993 which came into effect from 8-1-1993 and after the amendment, within six months. In support of the said contention, learned counsel referred to a ruling of this court in K. M. Amir Abdul Kader v. Dy. Director Enforcement Directorate, AIR 1986 Madras 140 wherein Ratnam, J. (as the learned Chief Justice then was) has observed as follows (At pp. 143-44) :

(3.) It is clear from the above ruling that any documents seized by the enforcement authorities should be returned within a period of one year. As the Act has been amended, any document seized should be returned within a period of six months unless proceedings under Section 51 of the Act were pending before the appellate Board or the High Court. Therefore, on the authority of the said ruling, Mr. Kumar, learned counsel submitted that the petitioner is entitled to return of the passports seized.