JUDGMENT

S.B. Sinha, J. —

1.Leave granted.

2.What would be the effect of a retracted confession for the purpose of levy of penalty under Foreign Exchange Regulation Act, 1973 (for short, “the Act”) is the question involved in this appeal which arises out of a judgment and order dated 30.11.2007 passed by the High Court of Judicature at Bombay in FERA Appeal No. 85 of 2007.

3.On or about 25.10.1994, the office premises of the appellant was searched. Recovery of Indian currency amounting to Rs. 2,65,000/- was made. He was thereafter detained. On the next two succeeding dates, i.e., on 26.10.1994 and 27.10.1994, he allegedly made two statements before the Authorities under the Act, disclosing that all the transactions in the name of M/s Sun Enterprises, Ahmedabad and M/s Suraj Enterprises, Bombay relating to import of goods had been made by him and no import of goods had taken place in the name of the said firms. He is stated to have confessed that he was responsible for remittance of the foreign exchange worth US Dollars 11,400 and US Dollars 22,830. In view of the said purported confession, he was arrested for alleged violation of the provisions of Section 8(3) and Section 9(1)(a) of th