JAGDISHBHAI AMBALAL PATEL Vs. K L VERMA

JUDGEMENT

(1.) -

(2.) THE petition is filed by the brother-in-law of the detenu by name Babubhai Purushottam Patel, against whom the Joint Secretary to Government of India passed an order dated September 16, 1994 under the provisions of section 3(1) of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (hereinafter referred to as "the COFEPOSA Act") directing that the said Babhubhai Purushottam Patel be detained and kept in custody in the Central Prison at Bombay.

(3.) THE grounds accompanying the order of detention reveal several transactions showing that the detenu was issuing gift-cheques in Indian currency to several people varying from rupees one lakh to about ten, and in one case to about forty lakhs. THE grounds also reveal that several accounts are opened by the detenu for the purposes of these transactions. THE grounds further reveal that there have been remittances in the NRE account of the detenu in foreign currency made by his son staying at London. THE grounds also reveal that the detenu has purchased foreign currencies at black market rates from the local market and the said foreign currencies are deposited in his NRE accounts with Banks in India. In the statement of the detenu recorded by the authorities, these facts are admitted by the detenu. THEre are also statements recorded of the persons in whose favour the gift-cheques were issued by the detenu and who in tern had paid cash amount equivalent to the amount in the cheque plus five per cent to the detenu. THE grounds also reveal that the gift-cheques were issued by the detenu on instructions of his son-Saurabh residing in London and that the amounts received by the detenu from those persons used to be collected by a person named Hirachand Shah from the detenu. It is alleged that the said Hirachand was arranging to transfer the amounts collected from the detenu to the son of the detenu in U.K. THE detenu used to inform all the details about the payments to his son at London. THE grounds also reveal that the detenu used to purchase foreign currency unlawfully from the local market and used to deposit the said currency in his NRE accounts in Banks in India.