Preventive detention under COFEPOSA is valid if based on substantial material indicating a person's ongoing propensity to engage in smuggling, notwithstanding allegations of procedural errors.

JUDGMENT :

ANU SIVARAMAN, J.

1. This Writ Petition Habeas Corpus is filed by Smt. Rama Raju, petitioner and mother of the detenue - Shri. Tarun Konduru Raju seeking a writ of Habeas Corpus to declare the detention order dated 22.04.2025, issued under Section 3 (1) of the CONSERVATION OF FOREIGN EXCHANGE AND PREVENTION OF SMUGGLING ACTIVITIES ACT , 1974 ("COFEPOSA Act" for short), as illegal.

2. We have heard Shri. Hashmath Pasha, learned Senior Counsel as instructed by Shri Kariappa N.A. learned Advocate appearing on behalf of the petitioner and Shri. Kuloor Arvind Kamath, learned Additional Solicitor General of India along with Shri. Shanthi Bhushan H, learned Deputy Solicitor General of India appearing on behalf of respondents No.1 and 2 and Shri. Thejesh P, learned High Court Government Pleader appearing on behalf of respondent No.3.

3. The brief facts of the case are as follows:-

Smt. Harshavardhini Ranya, was intercepted on 03.03.2025 at the Green Channel at Kempegowda International Airport, Bengaluru, while attempting to exit without declaration. A personal search revealed 17 foreign- marked gold bars weighing approximately 14,200.53 grams concealed on her person. Smt. Harshavardhini Ranya was arrested on 04.03.2025. Her voluntary statements were also recorded. Further, voluntary statements recorded reveals that she was a Director in five firms including 'Vira Diamonds Trading LLC, Dubai'. Her phone, laptop and other electronic devices were also voluntarily surrendered and subjected to examination. Customs declaration dated 06.03.2025 and 25.03.2025 in the name of M/s.Vira Diamonds Trading LLC for 2.8 kilograms of gold to the United States of America and 1.5 kilograms of gold to Thailand were retrieved from the laptop of Smt. Harshavardinin Ranya.

4. During the analysis of the data, the involvement of the detenue herein was noticed and the voluntary statements of Smt. Harshavardini Ranya were also obtained pointing to such involvement. Thereafter, the detenue's voluntary statement was recorded on 08/09.03.2025 under Section 108 of the Customs Act, 1962 ('Customs Act' for short). Further statements were recorded thereafter also on 09.03.2025, 10.03.2025 and 12.03.2025 as well. Further, a search was conducted on 11.03.2025 in the detenue's residence at Hyderabad. Thereafter, on the basis of the materials made available, the detention order dated 22.04.2025 was passed and was served on the detenue on 23.04.2025. The said order was challenged by the detenue in Crl.P.No.5432/2025 before this Court which was dismissed by order dated 26.04.2025. The grounds of detention and relied upon documents were also served to the detenue on 27.04.2025.

5. Respondent No.1 furnished the grounds of detention and the list of relied upon documents to the detenue. Respondent No.1 alleges that the detenue has engaged in activities amounting to abetment of smuggling under Section 2 (39) of the Customs Act read with Section 2 (e) of COFEPOSA Act, and has shown a general propensity to assist in smuggling activities to the detriment of Government revenue and national security. It is on this basis that the preventive detention order was passed.

6. It is stated in the detention order that the detenue had business associations with Smt. Harshavardhini Ranya in Dubai, jointly engaging in a precious metals and diamond trading venture under the name “M/s. Vira Diamonds.” After being removed from the partnership in December 2024, the detenue continued to engage in gold dealings with her and traveled to Dubai on 03.03.2025 to collect gold for delivery to Smt. Harshavardhini Ranya.

7. I