IMPORTANT POINTS
1. The member of Delhi Special Police Establishment is not clothed with the authority to investigate offences committed outside India.
2. In the absence of a notification under FERA, a member of Delhi Special Police Establishment cannot be held to be an officer under FERA and therefore is not competent to investigate into the offences under FERA.

Headnote:(i) Foreign Exchange (Regulation) Act, 1973-Sections 25(1) r/ws 56-Delhi Special Police Establishment Act, 1946-Sections 3 and 5 r/ws 6-Application for grant of permission to DSP, CBI, to investigate case u/s 25(1) r/ws 56 FERA-Maintainability-Offence alleged to have been committed outside Indian Territory-Whether a member of DSPE, which is also a member of Special Police Force constituted by Central Government, can investigate offences for violation of FERA, more so, when offence is alleged to have been committed outside Indian Territory?-(No).
       Held : A combined reading of Sections 3, 4 and 5 of FERA makes it quite evident that primarily the officer of Enforcement Directorate as mentioned in Sections 3 and 4 have been empowered to exercise the powers and discharge the duties conferred or imposed on such officers of the Enforcement Directorate under FERA. As it may be expedient in some cases to confer powers and duties under FERA to persons outside the Enforcement Directorate, the Legislature in its wisdom has given authority to the Central Government under Section 5 of FERA to authorise any officer of Customs or Central Excise Officer or a police officer or any officer of Central Government or State Government to exericse such of the powers and discharge such of the duties of the Director of Enforcement or any other officer of Enforcement under FERA as may be specified subject to such conditions and limitations as deemed fit by the Central Government. (Para 24)
       The member of DSPE is a member of police force constituted under DSPE Act by the Central Government. Under DSPE Act, a member of DSPE can exercise the power of investigation in the offence or offences as specified in Section 3 of DSPE Act within Union Territory. For exercising power of investigation outside Union Territory, even in respect of offences specified under Section 3 of DSPE Act, a notification extending jurisdiction in the State or States outside Union Territory is required to be issued by the Central Government with the consent of such State Government or Governments. Unless such notification under Section 5 of DSPE Act is issued, a member of DSPE cannot investigate and exercise jurisdiction under DSPE Act in respect of offence or offences specified in Section 3 in a State outside the Union Territory. It has already been indicated that notifications under Section 3 and 5 have been issued by the Central Government authorising members of DSPE to investigate various offences including offences under FERA in a number of States outside Union Territory including the State of Rajasthan. (Para 25)
       Further held : As already indicated, although officers of Enforcement Directorate are clothed with the powers and duties to enforce implementation of the provisions of FERA, the Central Government has been authorised to impose on other officers including a police officer, power and authority to discharge such of the duties and functions as may be specified by it. It is nobody s case that any notification has been issued under FERA authorising the member of DSPE to discharge the duties and functions of an officer of Enforcement Directorate. In our view, in the absence of such notification under FERA, a member of DSPE, despite the aforesaid notifications under Sections 3 and 5 of DSPE Act, cannot be held to be an officer under FERA and therefore is not competent to investigate into the offences under FERA. (Para 26)
       Consequently held : FERA is a special legislation relating to regulation of foreign exchange. FERA is also a central legislation enacted at a later point of time than the DSPE Act which was enacted in 1946. In our view, Sections 4 and 5 of the Code of Criminal Procedure will not come in aid of the investigation of the offences under FERA by a member of police force like an officer of DSPE in accordance of the Criminal Procedure Code. Sections 4 and 5 of the Code of Criminal Procedure provide that in the absence of any provision regulating investigation, inquiry or trial of non-I.P.C. offences i.e. offences under any other law, the investigation, inquiry and trial shall be in accordance with the Code of Criminal Procedure. But FERA is a self contained code containing comprehensive provisions of investigation, inquiry and trial for the offences under that Act. (Para 27)
       Under Sections 1 and 2 of DSPE Act, the authority under the said Act is to investigate the offences committed in the Union Territory or in such other States where the jurisdiction of the member of DSPE has been extended under Section 5 of the Act. The member of DSPE, therefore, is not clothed with the authority to investigate offences committed outside India. Even under Section 188 of Code of Criminal Procedure, investigation of an offence committed outside Indian territory may be made only with permission of the Central Government. Of course, if permission is granted, offences committed outside India can also be investigated. (Para 29)
       (ii) Foreign Exchange (Regulation) Act, 1973-Offences under -Section 5 Cr.P.C. not applicable. (Para 27)

JUDGMENT

G.N. Ray, J.-Leave granted. Heard learned counsel for the parties.

2. This appeal is directed against the order of the High Court of Rajasthan (Jaipur Bench) dated July 6, 1993 in SB Crl. Misc. Petition No. 81 of 1992 under Section 482 of the Code of Criminal Procedure, affirming the order dated October 22, 1991 passed by the learned Chief Judicial Magistrate (Economic Offences) Jaipur, arising out of CBI case No. RC 8(S)/91/SIU (IX), New Delhi.

3. Shri Om Prakash, Deputy Superintendent of Police, CBI/SIU (IX), New Delhi, made an application under Section 155 (2) of the Code of Criminal Procedure, before the Chief Judicial Magistrate (Economic Offences), Jaipur for grant of permission to the said Deputy Superintendent of Police, CBI, to investigate case No. RC 8/91/SIU (IX)/CBI, New Delhi under Section 25(1) read with Section 56 of the Foreign Exchange (Regulation) Act, 1973 (hereinafter referred to as FERA) against respondent No.3 Shri Arvind Singh Mewar of Udaipur, Rajasthan. It was inter alia stated in the said application under Section 155(2) of the Code of Criminal Procedure that the aforesaid case was registered against Shri Arvind Singh Mewar on the allegation that Shri Mewar, and Indian National and a resident in India, had purchased three properties in United Kingdom and got them repaired and renovated involving total expenditure of Rs. 288 lakhs (782790 pounds) approximately. The said Arvind Singh had also incurred heavy expenditure on the education of his daughter in U.K., journey expenditure to and fro United Kingdom and on the purchase of Rolls Royace Car etc. All such expenditure was incurred by Shri Mewar without any permission from Reserve Bank of India or Government of India. Accordingly, the said Shri Mewar had committed an offence under Section 25(1) read with Section 56 of FERA. It was further stated in the said application that as per Section 62 of FERA, the offences punishable under Section 56 of FERA were non-cognizable within the meaning of Code of Criminal Procedure and it was submitted that in order to investigate the non-cognizable offence, the aforesaid application for permission was filed.

4. By the order dated October 22, 1991, the Chief Judicial Magistrate (Economic Offences) Jaipur, dismissed the said application, inter alia, on the finding that under Section 5 of FERA, the State Government may by order and subject to such conditions and limitations as it thinks fit to impose, authorise any officer of Customs or any Central Excise Officer or any Police Officer or any Officer of the Central Government or a State Government to exercise such of the powers and discharge such of the duties of the Director Enforcement or any of the Officer of the Directorate of Enforcement or any other officer of the Enforcement under FERA as may be specified in the order; but no notification could be produced before the said learned Chief Judicial Magistrate which had empowered CBI under Sections 4 and 5 of FERA to cause investigation in respect of the offences under FERA. The learned Chief Judicial Magistrate also noted that the FIR had been registered by the CBI under Section 154 (1) of the Code of the Criminal Procedure. The learned Chief Judicial Magistrate indicated that the offence alleged against respondent No.3 was non-cognizable offence under Section 62 of FERA and FIR under Section 154(1) of the Code of Criminal Procedure could be registered for cognizable offences and not for non-cognizable offences. The learned Judicial Magistrate further observed that in the FIR it was alleged that the violation of the provisions of FERA had been committed in a foreign country. For investigation of offences committed in foreign countries, it was necessary to take permission of the Government of India under Section 188 of the Code of Criminal Procedure, but permission from Central Government had not been taken. Accordingly, the learned Judicial Magistrate held that the permission to investigate

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1996 Supreme(SC) 1010

Cases Referred (4)