M. B. SHAH, Y. B. BHATT, J.

( 1 ) ). The petitioner is detained on 3/01/1991 and was kept at Central Prison Ahmedabad in pursuance of the detention order dated 24th May 1990 passed by the respondent No. 1 Joint Secretary to the Government of India under Section 3 (1) of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act 1974 (hereinafter referred to as COFEPOSA Act ).

( 2 ) IN the grounds of detention it is inter alia alleged that an information was received by the enforcement Directorate Ahmedabad that one Shri Kamlesh Rawal had caused remittance of huge amount abroad on the basis of bogus import documents. Therefore Kamlesh Rawal was apprehended and his statement was recorded. As a result of the inquiry initiated by the Enforcement Directorate Ahmedabad number of documents relating to bogus imports were seized from the various banks situated at Ahmedabad. From those documents it was found that more than Rs. 18 crores were remitted through various banks on the basis of bogus/forged documents. From the statement of Kamlesh Rawal it was found that he was closely knowing one Prabodh G. Rawal of Bombay and that Prabodh G. Rawal had asked him to work as per directions of one Nitin Shah a close associate of Shri Prabodh Rawal. At the suggestion of Nitin Shah and Prabodh Rawal he became proprietor of M/s. Mikem Sales Corporation M/s. Villifen Sales Agencies and M/s. Toxmax Traders. One more firm in the name of M/s. Rajul Sales Corporation was also opened and one Shri Kirit S. Vaghela resident of Mansa was made its proprietor by Prabodh Rawal.

( 3 ) ON the basis of the aforesaid disclosure the premises of Prabodh Rawal and Nitin Shah were searched by the officers of Bombay Zonal Office of the Enforcement Directorate under Section 37 of the Foreign Exchange Regulation Act 1973 From the residence of Prabodh Rawal currency of Rs. 34 1 800 and number of documents relating to remittances of foreign exchange abroad by way of bogus imports and foreign currency worth Rs. 25 0 were seized. From his other residence at Khiranagar Indian currency of Rs. 1 50 0 and foreign currency of pound 42 and documents showing bogus imports and corresponding remittances along with rubber stamps of number of agencies viz. banks customs shipping/clearing agents Director of Industries etc. were seized.

( 4 ) DURING the course of investigation it was found by Bombay Office that one Shri V. Rajashekhar of Canara Bank Bangalore had come to Bombay and was staying in Ritz Hotel. It was also found that he was trying to contact Shri Nitin Shah. Therefore Rajashekhar was apprehended and on search some documents were seized from his possession. His statement was recorded under Section 40 of the Foreign Exchange Regulation Act 1973 on 8-8-1989. In his statement it is stated that he had come to Bombay on invitation of Nitin Shah and Bharat Parikh (detenu) who are close associates of Guru (Prabodh Rawal ). He has also further stated that Nitin Shah used to go to Canara Bank Bangalore and was bringing huge amount of cash for being remitted against number of imports documents received from abroad. He admitted that he has remitted more than Rs. 5 crores during the last one year. He stated that he had brought along with him certificates of import documents which were to be handed over to the detenu.

( 5 ) THE statement of Babubhai Limbhachia in whose premises the detenu was staying was recorded on 23/03/1990. In that statement Limbhachia has confirmed that detenu was a close associate of Prabodh Rawal and that he was collecting funds for him forging documents and remitting money abroad with active assistance of Nitin Shah. Because of the said activities Limbhachia had expelled the detenu from his residence.

( 6 ) ON further investigation statements of Pragnesh Jariwala and Suresh Jariwala were recorded. Pragnesh Jariwala has stated that his father Suresh Jariwala was assisting Prabodh Rawal in collecting the Indian currency in India from various per

Click Here to Read the rest of this document