B. P. Jeevan Reddy, J. - (1.) With a view to provide for the forfeiture of illegally acquired properties of smugglers and foreign exchange manipulators, the Parliament enacted, in the year 1976, The Smugglers And Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976, being Act No. 13 of 1976. The Preamble to the Act sets out the objective which the Act seeks to achieve. It says :"Whereas for the effective prevention of smuggling activities and foreign exchange manipulations which are having a deleterious effect on the national economy it is necessary to deprive persons engaged in such activities and manipulations of their ill-gotten gains; And whereas such persons have been augmenting such gains by violations of wealth-tax, income-tax or other laws or by other means and have thereby been increasing their resources for operating in a clandestine manner; And whereas such persons have in many cases been holding the properties acquired by them through such gains in the name of their relatives, associates and confidants;"
(2.) It would equally be relevant to notice the Statement of Objects and Reasons appended to the Bill. The Statement sets out the mischief the Act was intended to meet and counter-act. It reads: "Smuggling activities and foreign exchange manipulations are having a deleterious effect on the national economy. Persons engaged in such practices have been augmenting their ill-gotten gains by violation of laws relating to income-tax, wealth-tax or of other laws. In many cases, such persons have been holding properties acquired through ill-gotten gains in the names of their relatives associates and confidants. This accumulation of ill-gotton wealth gives increasing power, influence and resources to those who carry on such clandestine activities and even tend to confer social status and prestige which is quite contrary to the healthy socio-cultural norms. These activities pose a serious threat to the economy and the security of the nation. In conjunction with various other steps taken by the Government in recent months for cleansing the social fabric and resuscitating the national economy, it became necessary to assume powers to deprive such persons of their illegally acquired properties so as to effectively prevent the smuggling and other clandestine operations. The President promulgated on the 5th November, 1975 the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Ordinance 1975."
(3.) The Act was preceded by an Ordinance issued on 5th November, 1975. For that reason, the Act, when made, was given effect to from the said date. The object with which the Act was made is, without a doubt, highly laudable.;