JAI SINGH SEKHON.J. - (1.) SUBHASH Chander Gulati, the detenu-petitioner has filed this petition for a writ of habeas corpus under Articles 226/227 of the Constitution of India challenging the validity of the detention order dated 7-8-1989 Annexure P-3 passed by the Joint Secretary to Government of India, Ministry of Finance, Department of Revenue, under Section 3(1) of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (as amended) (hereinafter referred to as the COFEPOSA Act).
(2.) THE facts relevant for the disposal of this petition are that the detaining authority passed the order of detention dated August 7, 1989 under section 3(1) of the COFEPOSA Act directing the detention of the petitioner with a view to preventing him from acting in any manner prejudicial to the augmentation of foreign exchange. It appears that the petitioner was not available and this detention order was served upon the petitioner on 29-8-1989 and the grounds of detention Annexure P-4 were supplied to him on that very date. The grounds of detention reveal that on 2-5-1989, the officers of the Punjab Police searched the business premises of M/s Golden Silk Store, Rainak Bazar, Jalandhar, and recovered the following documents, foreign currency and Indian currency,: (i) Indian currency of Rs. 57,590/- from the business premises of M/s Golden Silk Store. (ii) US dollars 2.000 and Can. dollars 200 in the form of International Money Orders and Travellers Cheques and documents from the person of Shri Rakesh Kumar Arora. (iii) A slip of paper from the person of Shri Raj Paul, employee of M/s Golden Silk Store, Jalandhar, with certain accounts written thereon; (iv) Documents from the person of Shri Avinash Chander, partner, M/s Golden Silk Store." On information, the Zonal Office of the Enforcement Directorate, Jalandhar, took over the seized currency, documents etc. from the Punjab Police and Sarv Shri Avinash Chander Gulati, Rakesh Kumar Arora, Raj Paul and one Ramesh Kumar Mittal son of Shri Kewal Krishan Mittal, resident of Hoshiarpur, who were present at the time of seizure of the above referred articles from the premises of M/s Golden Silk Store, Jalandhar, were summoned under section 40 of the Foreign Exchange Regulation Act, 1973. It is noteworthy that the petitioner along with his brother Avinash Chander Gulati aforesaid are partners of the firm M/s Golden Silk Store, Jalandhar, while S/Shri Raj Paul and Rakesh Kumar Arora are their servants. During enquiry by the Enforcement Staff, Shri Avinash Chander Gulati brother of the detenu admitted that he along with the detenu are dealing in the sale and purchase of foreign currency and in that connection several persons used to visit their business concern. It was further found that accounts regarding sale and purchase of foreign currencies are maintained by Raj Paul servant of the petitioner in code words depicting US dollar as RSR. Pound & Sterling as M. & S.C. etc. etc. During the personal search of Raj Paul, the servant of the detenu, the police recovered one paper containing accounts in the code words on 2-5-1989. It is further averred in the grounds of detention that Rakesh Kumar Mittal, who happened to be present at the business premises of the detenu at the time of said raid, also admitted having indulged in sale of foreign currency to the business concern of the detenu, at the instance of Ramesh Gupta @ Meshi and that on 2-5-1979 he had purchased foreign exchange from different villagers visiting India from abroad and had delivered the same at the business concern of the detenu when the police came into action and seized the foreign currency, Indian currency and other documents. The grounds of detention also reveal the names of certains persons of Hoshiarpur and some persons of Delhi wherefrom the business concern of the detenu through aforesaid Rakesh Kumar Mittal used to purchase the foreign currency and sell it to different persons or concerns at Delhi. The detenu also filed representation to the concerned authorities against the detention order and the same was rejected on 3-9-1989 and the order of rejection was conveyed to the detenu vide memo dated 3-10-1989.
(3.) ON notice, in the counter affidavit filed by the Joint Secretary to the Government of India, Ministry of Finance, Department of Revenue, the allegations of the petitionr have been controverted.;