KULDIP SINGH Vs. UNION OF INDIA

JUDGEMENT

(1.) KULDIP Singh petitioner through this writ petition seeks quashment of detention order dated 25.2.1990 (Annexure P. 1) of his brother Jasbir Singh detenu passed under Section 3(1) of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974, hereinafter referred to as COFEPOSA, by Shri Mahendra Prasad, Joint Secretary to the Government of India, Ministry of Finance, Department of Revenue, with a view to preventing him from acting in any manner prejudicial to the augmentation of foreign exchange. This order of detention was served upon the detenu on 27-2-1990.

(2.) THE brief resume of relevant facts figuring in the grounds of detention is that on 16-11-1989 on the basis of secret information, the officials of Enforcement Directorate, Jullundur searched the residential premises of Lahmbar Singh and recovered Rs. 48000/- and some documents. On the basis of information gathered from those documents, aforesaid Lahmbar Singh was interrogated on that very day under section 40 of the Foreign Exchange Regulation Act, 1973 (hereinafter referred to as FERA). Lahmbar Singh disclosed that 16 loose sheets seized from his residence, except for pages 10, 11, 13 and 14 related to him and that he has written all the 11 pages of the Note Book in his hand. He further stated that he was engaged in distributing money in India on behalf of Nirmal Singh son of Sadhu Singh residing in England. These loose sheets of paper revealed the distribution of huge amounts of money ranging from Rs. 9000/- to one lac to 27 persons mentioned therein. Lahmbar Singh further disclosed that five other persons on the instructions given by aforesaid Nirmal Singh had visited his village and took payment of some money ranging from Rs. 10,000/- to Rs. 31,000/-. Thereafter, the Enforcement Staff arrested Lahmbar Singh under section 40 of the FERA and also searched the residential premises of aforesaid Nirmal Singh located in village Kala Sangha on 17-11-1989, on the basis of the statement of Lahmbar Singh to the effect that Nirmal Singh of U.K. used to give instructions to Ranjit Singh of Ludhiana and that sometimes he used to collect payments from Ranjit Singh at the premises of M/s Singh Brothers, near D.C. Office, G.T. Road, Jalandhar. The Enforcement Staff also searched the premises of M/s Singh Brothers and Darshan Singh Kohli on 17-11-1989 but only 85,000/- and some documents were recovered from Singh Brothers. On interrogation, Shri Gardip Singh, partner of M/s Singh Brothers inter alia, stated that one Ranjit Singh, employee of M/s Lilly White Studio, Ludhiana came to M/s Singh Brothers on two occasions and gave payment to an agent and another time to a lady inside their shop that aforesaid M/s Lilly White Studio is owned by Shri Vinod Kumar and Pappu. The officials of the Enforcement Directorate as a follow up action then raided the residential premises of Smt. Sneh Lata Ohri, and aforesaid Ranjit Singh and business premises of M/s Lilly White Studio, Ludhiana. Ranjit Singh on interrogation disclosed that he used to distribute money at the instructions of Parmod Kumar and Vinod of M/s Lilly White Studio. Shri Parmod Kumar issued him one certificate dated 19-7-1989 on the pad of M/s Chaman Lal and Sons showing that he was the Manager of the said firm and he used to carry this certificate always with him for showing to the authorities in case he was apprehended. This certificate was also seized by the Enforcement Staff. Ranjit Singh also disclosed having heard Vinod Kumar talking to one Mamaji of U.K. on telephone and that aforesaid Mama Ji used to give details of persons to whom payments were required to be made. Parmod Kumar and his employees used to prepare lists of persons to whom payments were required to be made on the basis of telephone calls and according to these lists, Rs. 70.00.00/- were required to be distributed. Ranjit Singh also disclosed the names of certain persons to whom he distributed about eleven lac rupees. The Enforcement Staff then interrogated some of the persons to whom the money was distributed by these persons. Those persons also supported the version of Ranjit Singh and others. Rajnder Kumar, employee of Vinod Kumar etc. also endorsed the above-referred version of Ranjit Singh. Rajinder Kumar also disclosed that Vinod Kumar was supplied this money by one person named Jasbir Singh detenu of village Palnau and that he and Ranjit Singh had distributed twenty lac rupees, in different villages under the instructions received from abroad. Aforesaid Parmod Kumar also on interrogation supported the above-referred version of his employee Rajinder Kumar and Ranjit Singh besides admitting that instructions were conveyed to him by a person named Mama Ji from U.K. and till that date he had received Rs. 50 lacs and had distributed this money through Rajinder Kumar and Ranjit Singh. Aforesaid Parmod Kumar, Rajinder Kumar and Ranjit Singh were also arrested by the enforcement Staff on 7-1-1989 and ultimately released on bail under the orders of the Chief Judicial Magistrate on 23.11.1989. On further interrogation all these persons, made some corrections in their earlier statements besides recognizing some persons to whom they had delivered the money. On the basis of this information, the Enforcement Staff then raided the residential premises of Jasbir Singh on 18-11-1999 in his absence at village Palnau. He was then summoned to appear before the Enforcement Staff on 20-11-1989 but the detenu sent telegram expressing his inability to appear before the Enforcement Staff at Jullundur and ultimately he appeared before the Enforcement Staff on 2-1-1990 and during interrogation made a statement that his maternal uncle Joginder Singh had been living in England for the last 20-22 years and that in January 1989, came to him and discussed with him distribution of money in India. Jasbir Singh then persuaded Parmod Kumar to distribute the money. I detention Joginder sent him one or two lists containing the names and addresses of the persons to whom the money was to be distributed and later on such instructions were telephonically conveyed to M/s Lilly White Studio, Ludhiana and that money used to be provided on behalf of Joginder Singh by some unknown persons. The detenu was then arrested on that very and day and released on bail by the Chief Judicial Magistrate on 4-1-1990 on such like allegations.The Enforcement Staff of FERA sponsored the case for detention of the detenu under section 3 (1) of the COFEPOSA and ultimately the Joint Secretary to the Government of India passed the impugned order.

(3.) IN the return filed by the detaining authority, all the allegations contained in the petition were controverted and in reply to para 8 (1) of the petition it was explained that the representation received on 29-3-1990 was disposed of with due promptitude on 2-5-1990. In Para 8 (ix), it was averred that no doubt the detenu used to appear in the office of the Enforcement Directorate at Jullundhur every Monday as per the terms of the bail order dated 4-1-1990, but this aspect was looked into by the detaining authority at the time of passing the detention order. It was further explained that the said bail order figures at page 175 of the English version of the documents relied upon by the detenu.