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 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 been 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.) STATEMENTS of some more persons were recorded in connection with the offences of forgery, falsification of accounts and fabrication of accounts for which offences punishable under I. P. C. , investigation is pending. STATEMENTS were also recorded in connection with the offences punishable under the FERA. The statements of the detenu were recorded on different dates under Section 40 of the FERA. The detenu was apprehended by the C. B. I. Bombay and was released on bail by the Chief Metropolitan Magistrate, Bombay on 10th September, 1994. He was summoned under Section 40 of FERA and his statements were recorded on 12th and 13th September, 1994. It transpired from the statements of the detenu that he was formerly in the employment of the Bank of India since 1974 as a clerk and was working with the said Bank till 1979. It appears that he was working at Zaveri Bazar and Opera House branch in Bombay and he voluntarily resigned and started commission business in diamond trade since 1979. He opened several accounts in the names of several firms such as (1) M/s Guardian Diamond Co. , (2) M/s Paras Diamond Corporation, (3) M/s Guardian Trading Co. , (4) M/s Mahipal Diamond Co. , (5) M/s Mahendra Vakharia & Co. , (6) M/s Guardian Gems & Jewellery. The detenu's firms had bank accounts at Ahmedabad with (1) Corporation Bank, Navrangpura Branch, (2) Syndicate Bank, Navavadaj Branch, and (3) Bank of Baroda, Ashram Road Branch. Several documents were seized from the detenu during the search of his premises. Statement of the detenu's employee Kamlelsh D. Rao was also recorded. From Kamlelsh's custody bogus rubber stamps and bogus stamps of customs department were seized. Similarly, it transpired that the detenu had handed over to him several bills of entry, visiting cards, foreign currency and credit advices.