Detention Under COFEPOSA: Supreme Court Dismisses Appeal Challenging Property Forfeiture

The case of Narender Kumar v. Union of India & Ors. revolved around the legality of a detention order issued under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA) and the subsequent forfeiture of property under the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 (SAFEMA). The Supreme Court upheld the High Court’s decision and dismissed the appeal, affirming that the detention was valid and the forfeiture of assets was justified under SAFEMA.

The judgment reinforces the principle that individuals detained under COFEPOSA cannot later challenge their detention if they failed to do so while in custody. It also clarifies the applicability of SAFEMA in cases of economic offenses.

Background of the Case

Narender Kumar, the appellant, challenged an order of detention issued against his father, Roshan Lal, under COFEPOSA on 19th December 1974. The detention was based on allegations that Roshan Lal was involved in smuggling activities and had acquired wealth disproportionate to his known sources of income. The detention continued through the Emergency period (1975-1977) and was revoked only after the Emergency was lifted on 21st March 1977.

Following his release, authorities issued notices under SAFEMA for the forfeiture of properties belonging to Roshan Lal and his wife, Sheelawati. These notices required them to explain the source of their wealth, failing which their properties would be confiscated.

Roshan Lal initially filed a writ petition in the Punjab and Haryana High Court but did not pursue it actively. After his death, his son, Narender Kumar, filed a fresh petition in 1996 challenging both the detention and the property forfeiture orders. The Delhi High Court dismissed this petition in 2008, leading to the present appeal before the Supreme Court.

Key Legal Issues

• Whether a detention order under COFEPOSA can be challenged decades after it was issued.
• Whether SAFEMA proceedings were valid given that Roshan Lal’s detention was not contested while it was in effect.
• Whether procedural lapses in detention, such as the non-supply of certain documents, invalidated the forfeiture proceedings.

Arguments by the Petitioner (Narender Kumar)

• The detention order was illegal as it was based on the same allegations as a previous detention under the Maintenance of Internal Security Act (MISA).
• Roshan Lal’s representation against detention was not properly considered.
• The authorities did not provide adequate evidence to justify property forfeiture under SAFEMA.
• The High Court erred in holding that the failure to challenge detention earlier precluded any later challenge.

Arguments by the Respondents (Union of India)

• The detention was upheld during the Emergency, and its validity could not be challenged after such a long delay.
• The forfeiture was justified under SAFEMA as Roshan Lal had failed to provide evidence of legitimate income sources.
• The detention was valid under COFEPOSA, and the authorities had complied with all procedural requirements.
• The High Court had rightly dismissed the appeal as barred by the principle of res judicata.

Supreme Court’s Observations and Judgment

The Supreme Court reviewed the case in light of legal precedents and the constitutional framework governing preventive detention and economic offenses.

Key observations of the Court:

• COFEPOSA and SAFEMA are preventive laws aimed at curbing smuggling and black money circulation. The stringent nature of these laws is justified in the interest of economic security.
• The appellant’s father did not challenge the detention order while he was alive, and his writ petition was dismissed as infructuous in 1978. Allowing a challenge decades later would undermine the preventive detention framework.
• The provisions of SAFEMA clearly state that properties of detained persons can be forfeited unless they prove their legitimate acquisition. Roshan Lal and his wife failed to do so.
• The challenge to the detention order was dismissed based on the Supreme Court’s earlier ruling in Attorney General for India v. Amratlal Prajivandas, which held that a valid detention order under COFEPOSA provides a sufficient basis for applying SAFEMA.

Key Judgment Excerpt:

“A person who did not choose to challenge such an order of detention during the emergency when he was detained, or challenged it unsuccessfully, cannot be allowed to challenge it when it is sought to be made the basis for applying SAFEMA to him.”

The Supreme Court concluded that since the detention was not revoked on legal grounds at the time, the SAFEMA proceedings were valid. The appeal was dismissed, and the forfeiture of properties was upheld.

Conclusion

This judgment affirms that preventive detention under COFEPOSA and property forfeiture under SAFEMA must be challenged within a reasonable timeframe. It ensures that economic offenders cannot evade legal consequences by delaying legal challenges. The ruling serves as a strong precedent in cases involving the intersection of preventive detention and economic offenses.

Petitioner Name: Narender Kumar.
Respondent Name: Union of India & Ors..
Judgment By: Justice Uday Umesh Lalit, Justice Hemant Gupta.
Place Of Incident: Amritsar, Punjab.
Judgment Date: 08-04-2019.

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