The central legal point established in the judgment is the importance of correctly applying the provisions of the COFEPOSA Act in detention orders, ensuring that the activities of the detenu align with the specific grounds for detention under the Act.

R. S. SODHI, J.

( 1 ) THE W. P. (Crl.) No. 2183/2005 seeks to challenge the order of detention dated 9th March, 2004 of the Joint Secretary, Government of India in exercise of his powers under Section 3 (1) of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (as amended) detaining the petitioner's husband (detenu) in Central Jail, Tihar on account of preventing him from smuggling goods in future.

( 2 ) THE facts of the case as stated in the counter affidavit are as follows:"the main case based on which issuance of Detention Order against Shri sushant Agrawal was proposed is in respect of diversion of goods imported under an Advance Licence issued under DEEC scheme to m/s. Lakshay Exports (Intl.), New Delhi. The case investigated by the dri is based on specific information that fabrics imported duty free under an Advance Licence (No. 0510078414 dated 17. 1. 2003) issued to M/s. Lakshay Exports (Intl.), New Delhi, under DEEC Scheme has been diverted to be local market by Shri Sushant Agrawal. Searches were conducted at various premises and incriminating documents were resumed. Goods imported duty free under the impugned licence and sold in the local market by Sushant Agrawal, was detained at karampura and at Gandhinagar. Goods imported by Sushant Agrawal in the name of M/s. Vishesh Enterprises was detained at godown premises of the transporter as the same were appeared to be misdeclared at the time of import to evade customs duty. A large stock of goods was also detained from his godown at Okhla Industrial Area on reasonable belief that the same was imported by him illegally. Investigation conducted into the diversion of goods imported duty free under the DEEC Scheme resulting into non-fulfilment of export obligation thereof indicated that the impugned licence bearing No. 0510078414 dated 17. 1. 2003 for GIF value Rs. 9. 87 crore was issued in the name of m/s. Lakshay Exports (Intl.), New Delhi and that the licence was actually operated by Shri Sushant Agrawal who placed orders for the fabric, cleared the goods from Customs by making payment to the CHA and, thereafter, stored them in his own godown and sold them in the local market. Investigations also indicated that Shri Rakesh Divedi had only lent his out of greed and Shri Sushant Agrawal masterminded the whole fraud in which customs duty of Rs. 4,96,23,955/- was evaded. Involvement of Shri Sushant Agrawal is evident as the investigation indicted that he initiated Rakesh Divedi to obtain the subject Advance Licence from the DGFT; that he used to place order on the supplier on behalf of M/s. Lakshay Exports (Intl. ). Remittances for the imports were financed by him; that original DEEC licence of M/s. Lakshay Exports (Intl.), New delhi was handed over by him to the CHA; that customs clearances of consignments imported in the name of M/s. Lakshay Exports (Intl.) was arranged by him; that transportation from Kolkata was arranged by him; that delivery and further disposal of the imported goods in Delhi was managed by him and payments to CHA was also by him. Shri Sushant Agrawal in his statement admitted that he had misused the advance Licence in effecting duty free clearances and then selling the said goods in the open market. His own admission was supported by statements of various transporters, traders, CHA and partner of M/s. Lakshay Exports (Intl. ). Shri Sushant Agrawal has thus managed to evade customs duty to the tune of Rs. 4. 96 crore by diverting the fabric imported against DEEC licence in the local market and the voluntarily submitted a bank draft of Rs. 13 lakh on 6. 10. 2003 towards duty evaded by him. Investigation into the import of goods in M/s. Vishesh Enterprises, revealed that proprietor of the said firm Shri Sanjay Sethi @ Jodar Gulati has acted as per the direction of Shri Sushant Agrawal for financial gain; that import of goods in the said firm was financed and managed by Shri sushant Agrawal; that goods was declared as '