RAJURAM PUROHIT PETITIONER Vs. UNION OF INDIA

JUDGEMENT

(1.) By this petition under Article 226 of the Constitution of India, the petitioner challenges the following communication, a copy of which is at Exhibit-A, page 11 of the petition paper book, sent by his banker; viz. :

(2.) Mr.Jetly appearing for the respondents, on notice, files an affidavit today in which it is alleged that the petitioner together with some other parties, was responsible for smuggling 57 kgs of gold bars valued at Rs.16.96 crores. They were concealed in 57 air conditioners. In fact, great effort had to be made to detect and then seize them. It is in these circumstances and alleging that there is a syndicate indulging in such activities and on several occasions in the past they had smuggled gold, that the authority was authorized to write to the bank and proceed as above.

(3.) Thus, money generated by way of smuggling of gold bars was found to be pumped into the banking channel through cheque discounting. It is to discard that practice, that present step has been taken. Mr.Jetly would invite our attention to Sections 110, 120 of Customs Act, 1962 to submit that there is a power to seize the goods, documents and things which include, as in the instant case, the gold bars, and equally there is power to proceed against the movable property which means monies lying in the deposit with the bank. Then our attention is invited to Section 121 of the Customs Act, 1962 to submit that what is being confiscated are the sale proceeds of the smuggled goods.