AFZAL SAUDAGAR Vs. JT SECRETARY GOVT OF INDIA

JUDGEMENT

(1.) The Petitioner has applied for issuance of the writ of Habeas Corpus and to quash and set aside the order of detention dated 29 th Janua ry, 1999 bearing No.673 /4 / 9 9- Cus.VIII passed under Sec. 3(1) of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA).

(2.) The order of detention is passed on the basis that the Petitioner purchased foreign currency from bulk dealers of foreign exchange and disposed off the same in black market instead of issuing it to genuine travellers under the BTQ scheme of the Reserve Bank of India. The order also shows that the Petitioner had been issued Full Fledged Money Changer (FFMC) Licence. One M/s. U.K.Picturewala & Sons carried on the business from Shop No.7, Bunder Building, 241, SVP Road, Dongri, Mumbai- 400 009 and kept the document s pertaining to the said business in the premises of one M/s. Adam Enterprises, at Shop No.2, 197, SVP Road, Zohar Manzil, Dongri, Mumbai- 400 009. It shows how the Petitioner was admitted to the partnership of the said M/s. U.K. Picturewala and Sons and carried on the said business from 13 th December, 1996 until 2nd July, 1997 soon after which his license was canceled on 24 th July, 1997. It shows that the Petitioner disposed of foreign exchange in black market to the extent of Rs.13,79,31,157 / - purchased by him from certain 5 bulk dealers, whose names are mentioned in the detention order.

(3.) The Petitioners premises was raided on 29th September, 1997. He was arrested on 30th September, 1997 and produced for remand on the next day before the Additional Chief Metropolitan Magistrate, Mumbai, when he was remanded to Judicial Custody. On his application for bail dated 1st October, 1997 he was released on bail on 6th October, 1997. The case came to be investigated. Statement s of several persons including the Petitioner were recorded, the Petitioner was issued a show- cause notice on 25 th September, 1998 by the Special Director of Enforcement after the investigation was completed.