LAWS(MAD)-1999-2-38

B S GANDHI Vs. UNION OF INDIA

Decided On February 25, 1999
B.S.GANDHI Appellant
V/S
UNION OF INDIA Respondents

JUDGEMENT

(1.) The petitioner has filed the above writ petition seeking to issue a writ of Mandamus, directing the respondent to forthwith return to the petitioner US $12,500/- along with interest yielded so far and documents of five sheets from the possession of the petitioner on 17-3-1993.

(2.) It is the case of the petitioner that on 17-3-93 the officers of the respondent searched the office and residential premises of the petitioner and as a result of that US $12,500/- and documents were seized from the petitioner. Relying on Section 41 of the Foreign Exchange Regulation Act, 1973 (hereinafter called the Act'), the petitioner has come forward with the above writpetition on the basis that the proceedings as contemplated under Sections 51 or 56 have not been initiated within six months of seizure and so the respondent cannot retain the documents without returning the same.

(3.) The respondent filed a counter stating that proceedings under the Act have been initiated against the petitioner on 14-9-1993 by the Special Director of Enforcement, Government of India, New Delhi. In the said proceedings, he was asked to show cause as to why adjudication proceedings as contemplated in Section 51 of the Act 1973 should not be held against him for contravention of Section 8(1) and as to why the foreign exchange of US $12,500/- seized from his office premises on 17-3-93 being the amount involved in Section 8(1) contravention should not be confiscated to the Central Government in terms of Section 63 of the Act. On the basis of the said facts, it is alleged in the counter that since the adjudication proceedings under Section 51 of the Act commenced within six months from the date of seizure, the question of returning the same until the adjudication proceedings are over will not arise.