( 1 ) HEARD Mr. S. H. Sanjanwala, learned senior counsel with Mr. Y. S. Lakhani, appearing for the petitioner-detenu and Mr. M. M. Tirmizi, learned Additional Standing Counsel appearing for Union of India and the concerned Department of Central Government, so also, Ms. H. B. Punani, learned AGP for respondent No. 3.

( 2 ) #. The present petition is under Article 226 of the Constitution of India praying for appropriate writ, order and direction for quashing the order of detention bearing F NO. 673 / 4 / 2004-CUS-VII dated 28. 5. 2004 issued by Mr. R. K. Gupta, the Joint Secretary to the Government of India, Ministry of Finance, Department of Revenue, New Delhi in exercise of the powers vested under Section 3 (1) of the COFEPOSA Act. #. (i) The order of preventive detention has been passed on the allegation that the petitioner is responsible for breach of COFEPOSA Act and is required to be prevented from smuggling goods in future. After execution of the order on 1st June, 2004, he is kept under detention in Central Prison Sabarmati at Ahmedabad. 3 (ii) for recording the subjective satisfaction, the detaining authority has placed reliance on the grounds conveyed to the detenu when the order under challenge was executed. The petitioner being aggrieved and dissatisfied has challenged the order alleging that the same is illegal, arbitrary, improper and execution of it is violative of privilege flowing from Article 21 and 22 (5) of the Constitution of India. The backbone of the facts considered by the detaining authority as substantive ground to pass the order of preventive detention is that the scheme referred to in the gruonds, has been fraudulently availed and undue advantage has been taken and thereby the Union of India lost huge amount in crores. 3 (iii) the papers of investigation carried out by D. R. I. , according to the detaining authority which clearly indicate that by manipulating several documents and showign false transactions, the petitioner fraudulently availed undue and excessive DEPB and the petitioner thereby defrauded the Government and the officials etc. . The idea to cheat the Government was hatched by the Units mentioned in paragraph-4 and the persons named in the said paragraph including petitioner. The details have been given in tabular form in para-4 of the detention conveyed ( Table mentioned on Page-52-53 ). The Court has considered the contents to appreciate the justification of grounds for detention. 3 (iv) the allegation against the present petitioner is that he is the proprietor of M/s Colosperse Chemicals Corporation, Surat and the partner in M/s Cosmos Chemicals and Intermediates, Surat and also in M/s Chevrolet Dyes Intermediates and Agro Chem Industries, Ankleshwar and thereby the petitioner has taken disadvantage. The authorities also considered the statement of the present petitioner recorded on 27th February, 2004 under Section 108 of the Customs Act, 1962 and the allegation is substantially the wrong confessed by the present petitioner. Various aspects including the statement of Mr. Ratnapal Chauhan, Branch Manager of M/s Chinubhai Kalidas and Brothers, CHA firm have been considered.

( 3 ) (I) one more allegation against the present petitioner is that though the petitioner had claimed rebate fraudulently and such rebates claims were filed with Maritime Commissioner in respect of the past exports of certain associate companies viz. M/s Clarity Intermediates and Pesticides and M/s Cosmos Chemicals and Intermediates as mentioned in para-10 of the ground for detention. (ii) for short, the petitioner is ordered to be detained for the reasons mentioned in the grounds conveyed to the detenu (Annexure-B at page. 49) and it is alleged that the petitioner has cheated the Government and caused loss of several Crores of Rupees. It is claimed that this facts traced because secret watch was kept on the activities of the firm headed by the present petitioner.

( 4 ) THE petitioner has challenged