MEENA MAHENDRA VAKHARIA Vs. K.L.VERMA

JUDGEMENT

(1.) HEARD all the learned Counsel; Shri Karmali for the petitioner, Shri Agarwal for respondent nos.1 and 3 and Shri Patil for respondent nos.2 and 4.

(2.) THE petitioner Smt. Meena is the wife of Mahendra C. Vakharia who is the the detenu detained under the order dated 25th November, 1994 (Ex. A page 29) passed by the first respondent Shri K.L.Verma, Joint Secretary to the Government of India who is the officer specially empowered under section 3(1) of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (for short COFEPOSA). The said order was served on the detenu on 24th February, 1996 because of the fact that the detenu was absconding and steps had to be taken for issuing a proclamation for attachment of his properties in accordance with the provisions of the Code of Criminal Procedure, 1973. Under the said order, the detenu has ben ordered to be detained with a view to preventing him in future from acting in any manner prejudicial to the augmentation of foreign exchange. The period of detention, viz. one year has already expired but the matter has been argued before us on account of the fact that proceedings under the Smugglers and Foreign Exchange Manipulators (Forfeiture of property) Act, 1976 (for short SAFEMA) are still pending. Be that as it may, the order of detention alongwith the grounds on which the detention order is based and the material in support of the said grounds was served on the detenu on 24th February, 1996. This petition was filed on 20th April, 1996 and rule was issued on 23rd April, 1996.

(3.) IN the follow up action, the residential premises of the detenu were searched under section 37 of the FERA. Statements of the detenu and his wife Meena Vakharia, the present petitioner, were recorded under section 40 of the FERA from which it transpired that the detenu was showing that he was doing business of import of diamonds in the name of five companies viz; (1) Guardian Diamond Co., (2) Guardian Gems & Jwellery, (3) Paras Diamond Co., (4) Mahipal Diamond Co., (5) Mahendra Kumar & Co. Statement of Kishore H. Bhat, Sr.Manager of Bank of Baroda, Ashram Road Branch was recorded under section 40 of the FERA which confirmed the fact that it was the detenu who was operating several accounts in several names on behalf of several companies mentioned above. Statement of P.K.Venugopal who was handling the inward and outward remittances in the bank of Baroda, Ashram Road Branch was recorded on 15th November, 1992 under section 40 of FERA which confirmed the fact that the detenu used to operate the account for the purpose of making remittances to Hong Kong to the extent of Crores of rupees.