SHASHIKANT RAMJIDAS CHAWLA Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) This petition filed by the brother of the detenue under Article 226 of the Constitution challenges the detention order dated 14/11/2006 issued against the detenue - Ravikant Ramjidas Chawla by the Principal Secretary (Appeals and Security) to the Government of Maharashtra, Home Department and Detaining Authority under Section 3(1) of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (for short the Act). The said order dated 14/11/2006 was served on the detenue on 28/8/2007 and since then he continues to be under detention. The Advisory Board constituted under the Act confirmed the order of detention and subsequently the State Government passed an order on 15/11/2007 under Section 8(f) of the Act confirming the said detention for a period of one year under Section 10 of the Act from the date of his detention i.e. from 28/8/2007.

(2.) One Shri Deepak Jare, who was running an export agency by name M/s. Vaishnavi Freight Forwarders had arranged the export of three containerized export cargo covered by 13 Shipping Bills in the name of M/s. Simplex Exporter and Importer, New Delhi and other 15 Shipping Bills in the name of M/s. Maan International and M/s. Pal Exim India which were declared to contain children's wear, ready-made garments and sports goods like cricket bats etc. On suspicion of false claim of drawback amount, his premises were searched on 17/1/2006. He was operating as custom clearing agent on the strength of CHA Licence No.11/747 issued to M/s. Smita International for which he was paying an amount of Rs.500/- per document to Shri Shekhar Desai of the said firm. He was attending the clearance of export consignments of various exporters under licence of M/s. Smita International and he had employed 8 persons including Shri Javed, Shri Jahid M. Nazmu and one Shri Sandip. The detenue was present in the office of Mr.Jare on 17/1/2006 and his statement was recorded on that day and his another statement was recorded on 18/1/2006. On 21/1/2006, 13 Shipping Bills of M/s. Simplex Exporters and Importers, New Delhi were examined and they were found to be in respect of Baba suits and cricket bats. The value of these items was shown at Rs.3.60 crore as against the real value of Rs.29.33 lakhs. Similarly on 2/2/2006, 15 Shipping Bills of M/s. Maan International and M/s. Pal Exim India were inquired into and it was found that as against the real value of Rs.19.62 lakhs, the export value was shown at Rs.3.31 crore. In his statement, Mr. Jare had accepted that since October, 2005 till the date of search, he had received an amount of Rs.1.25 crore by way of drawback amount and the said amount was distributed by cheques issued in favour of M/s.Simplex Exporters and Importers (Rs.29,20,000/-), M/s. Maan International (Rs.14,50,000/-), M/s. East West (Rs.20,00,000/-), M/s. Midas International (Rs.9,00,000/-), M/s. SNT Fashions (Rs.18,35,000/-), M/s. Metro Concepts (Rs.4,41,000/-), M/s. York Fashions (Rs.7,35,000/-), M/s. SNT Fashions (Rs.14,70,000/-). All these cheques were issued towards the drawback amount claim against the fraudulent export arranged and made against the said firms which were found to be fictitious. As per the statement of the detenue recorded on 17/1/2006, on his request, Shri Ajay Batra had agreed to assist him in making the export of garments and sports items on the condition that the profit made out of such export would be shared with Shri Deepak Jare and this offer was accepted by Mr.Jare as well, who had informed the detenue that the low valued goods would be exported by enhancing the same to maximum value and also by declaring higher quantity to avail maximum drawback which would be shared equally between three i.e. Shri Deepak Jare, Shri Ajay Batra and the detenue.

(3.) Though the detention order was challenged on more than one grounds, only the following grounds have been urged before us:-