DEEPESH MAHESH ZAVERI Vs. UNION OF INDIA

JUDGEMENT

(1.) THE main question which arises for consideration in this petition under Article 226 of the Constitution of India for a Writ of Habeas Corpus is how to calculate the period of three months contemplated by clause (4) of Article 22 of the Constitution which does not permit preventive detention of a person for a longer period than three months unless the Advisory Board has reported before expiration of the said period of three months that there is in its opinion sufficient cause for such detention. This is a petition by Deepesh Mahesh Zaveri, son of the detenu Mahesh Kantilal Zaveri, challenging the Order dated 5th October, 1995 issued by the second respondent viz. Joint Secretary to the Government of India, Ministry of Finance, Department of Revenue, in exercise of his powers under Section 3 (1) of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (for short, COFEPOSA Act ). Under the said order, Mahesh Kantilal Zaveri has been detained under Section 3 (1) of the COFEPOSA Act with a view to preventing him in future from acting in any manner prejudicial to the augmentation of foreign exchange. The order of detention has been executed on 10th October, 1995. The confirmation order under Section 8 (f) of the COFEPOSA Act was issued on 10th January, 1996, followed by a corrigendum issued on 9th February, 1996. The brief facts necessary for deciding the petition are as under :-

(2.) ON the 5th June, 1995, a letter dated 29th May, 1995 was received from one Jagat Shah by the Deputy Director of Enforcement, Bombay, which revealed that the detenu was concerned with M/s. A. M. Zaveri and Co. , Italian Chain Manufacturing Co. , and Shriji Exports, Bombay, and had been exporting gold jewellery to his own companies by name M/s. Full Gold Ltd. , and Golden Jewel Enterprises Ltd. , at Hongkong. Under the Export Promotion Replenishment Scheme, he was required to repatriate the sale proceeds of the exported jewellery through the official banking channels, but he was receiving the proceeds unofficially through illegal channels viz. adjustment by way of 'havala' payments and was still claiming entitlement to replenish his gold stocks. On 21st June, 1995, the business and residential premises of the detenu were searched and some documents were seized. On the same day, the statement of the detenu was recorded. It transpired that between March, 1995 and June, 1995 he had exported gold jewellery worth Rs. 7 to Rs. 7. 5 crores under the Export. Promotion Replenishment Scheme and his statement disclosed that the sale proceeds of the exported gold jewellery, instead of being repatriated through the official/banking channels, was received through illegal channels viz. adjustment by way of Havala payments.

(3.) DURING the course of investigation under the Foreign Exchange Regulation Act, 1973, the detenu was initially arrested on 22nd June, 1995, but was released on bail on 23rd June, 1995. He retracted his statement that was recorded on 21st June, 1995. On 22nd August, 1995 he filed an application before the Chief Metropolitan Magistrate, Bombay, for return of certain documents claiming that the said documents were necessary to enable him to comply with his obligations under the Export Promotion Replenishment Scheme. It is stated that the documents consisted of "release Certificates". The Magistrate passed the Order on 25th August, 1995 in favour of the detenu. The Enforcement Directorate challenged the said order in Revision Application before the Sessions Court and the Sessions Court allowed the said Revision Application on 19th September, 1995. On 28th September, 1995 the detenu filed Writ Petition No. 1047 of 1995 in this Court, which is pending. As stated earlier, the detention order was issued from Delhi on 5th October, 1995 and has been served on the detenu on the 10th October, 1995.