DINESH A PAREKH Vs. SPECIAL DIRECTOR OF ENFORCEMENT

JUDGEMENT

(1.) The mystery of an Air Mail has left behind its haunting trial. The chapter opens when the husband left his house located in Grand Paradi Apartments, August Cranti Marg in this metropolis to resume his duty in the office of Swiss Air where he was working, unmindful of the event that was followed on that fateful day. The wife was all alone in the house who had also no inkling when the door was trapped and she had to receive unwelcomed guests as she was confronted with the Enforcement Officers at the entrance. They inquired about the husband and on learning that he was away they deputed some one to fetch him from his office. The other officers entered the premises and awaited his arrival. After some time the person who deputed came in the company of the husband back to his residence. The Enforcement Officers were on the official duty as they wanted to effect the search of the premises after having received credible information that the husband was involved in a transaction offending the provisions of Foreign Exchange Regulations Act (FERA). The time was roughly about 9-00 A.M. The services of some panch witnesses were requisitioned. In the search they came across an envelope containing some documents including the list mentioning some names and some figures and that postal envelope then came to be attached under panchnama on account of generating a feeling of suspicion in the mind of the officers. They ostensibly felt that it has the direct nexus with the Hawala transaction as remittance of certain currency to the persons residing outside India and thus was in proof of the allegations of violation of certain provisions of FERA. No other incriminating article was found. The wife has to watch the entire show helplessly. The turmoil however was not to over because the husband was then taken by the officers to the Enforcement office for interrogation, once again leaving the wife all alone in the house. The said husband is the appellant herein. All this happened on 7th July, 1981, round about 9-00 A.M. the venue being the residential premises of Dinesh Parekh in Grand Paradi Apartments.

(2.) Then started the second phase of oral nation which ultimately transformed itself into the statements being recorded of the appellant under section 40 of FERA. He was subject to constant and continuous interrogation in a vigorous manner right from that time till about 11-00 A.M. on the next day i.e., 8th of July, 1981 whereafter he was produced before the learned Magistrate for remand. Some statements thus came to be recorded during that span which according to the officers had a thread of continuity. Some other names were disclosed which the officers felt were the names of co-conspirators in the transaction. They were contacted and some of them were brought to the office and their statements were also recorded.

(3.) The composite effects of all the relevant statements generated a reasonable belief in the mind of the officers that all of them were involved in the said Hawala transaction. In effect it was felt that one Rambhai Patel resident of Baroda handed over and amount of Rs. 16,63,000/- Indian Currency to the appellant some time in the month of April or May 1981. The appellants was then asked to write owner the names of five or six persons indicating the certain amount to be remitted to each of them and that list was also given to the appellant by Rambhai Patel. The appellant in turn is alleged to have handed over the said list along with the same currency to one Shantilal Shah who was also on the same mis. The said Shri Shantilal Shah in turn handed over the list and amount to one Devchand Vasa for being transmitted to one R.H. Pavri in Hongkong. There are divergent versions as to how this list and the amount travelled and which were the agencies. However, it is alleged that the said Pavri on receipt of the said list and the amount remitted the equivalent amount in foreign currency to five or six different persons stationed in United State, United Kingdom and Switzerland as per the direction received by him through the list. After completing the mission the said Pavri sent back post the said list along with the application for cable tractor of the amounts on the address of the appellant and in the name. This envelope by air mail was posted at Hongkong on 27th of May, 1981 though as a tremendous co-incidence it reached the house of the appellant on 7th of July, 1981 at about the same time when equally co-incidentally the effecting of the raid was in progress. This synchronising will have to be seriously considered and which is bound to invite some comments either way. It is the bunch of these five documents that were found in the said postal envelope in the bed room of the appellant which was attached under panchanama as already stated. Thus it is alleged that there is a common bond between these five persons and an under- current of a common mission in remitting the said amount to the persons staying outside India and which transaction incurred the penal liability for contravention of the offences under section 8(1) and 8(2) read with section 64(2) of the FERA. It is alleged that the statement revealed the involvement of these persons in other transactions also which could entail into their liability under other provisions of FERA including section 9(1)(f)(i) and section 9(1)(a) with which however we are not much concerned in this proceeding since all of them have been exonerated of the other charges the residue being the liability only under section 8(1) and 8(2) of the Act. The Statement of Shri Pavri came to be recorded though after quite long time. It may be mentioned at this juncture itself that the statement of Shri Devchand Vasa is however completely exculpatory disowning every knowledge much less any involvement in the transaction.