Nexus between conservation and augmentation.

P. Sathasivam, J.

Since the issue and grounds raised in all the three matters are inter-connected and one and the same, they are being disposed of by the following common order. In H.C.P.No. 1818/2003, the petitioner, father of the detenu-C. Surendra Kumar @ Surendran challenges the detention order dated 6-10-2003, wherein his son, detenu was detained under Section 3 (1) of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (in short "COFEPOSA Act") with a view to preventing him from acting in any manner prejudicial to the augmentation of foreign exchange in future and the detenu was kept in custody in the Central Prison, Salem. In h.C.P.No. 1819/2003 the petitioner is the wife of the detenu-K.P. Abdul Majith, who was also detained under Section 3 (1) of the COFEPOSA Act by order dated 6-10-2003. In H.C.P.No.173 of 2004, the petitioner, wife of the detenu-V. Velusamy, challenges the detention order dated 25-11-2003 passed under Section 3 (1) of the COFEPOSA Act.

2. The common facts which lead to passing of the detention order dated 6-10-2003 and 25-11-2003 are briefly stated hereunder:

The Enforcement Directorate (hereinafter referred to as "the Directorate") received a reliable information that one C. Surendrakumar had been indulging in receiving and making compensatory payments under instructions of a person resident in UAE. Preliminary enquiries made by the Directorate revealed that it was C. Surendrakumar, residing at No. 1394, Trichy Road, Coimbatore and further investigation conducted by the Directorate had unearthed a hawala racket involving huge transfer of funds estimated over Rs.600 crores to India from UAE through unauthorised channel as per instructions of one Asarulla Rakka Khan, an Indian citizen, resident in Dubai. His father K.P. Abdul Majeed of Kozhikode, Kerala, was managing the receipts and distribution of those funds by engaging various persons in Mumbai, Coimbatore in Tamil Nadu and northern parts of Kerala. The modus operandi, so far detected, was that funds in Indian Rupees were received in Mumbai from undisclosed sources, were credited into bank accounts, maintained under fictitious names and addresses, that the persons had since been identified as employees or agents of K.P. Abdul Majeed. The funds after deposited in those fictitious bank accounts in Mumbai, were transferred to bank accounts in Coimbatore and Kerala (maintained in the names of different persons with different banks) by means of Telegraphic Transfers, and that therefrom the funds were withdrawn by cash. The source of funds and the end use or ultimate beneficiaries were not disclosed by the persons who were questioned so far, leaving it to the logical conclusion that there was a criminal conspiracy leading to hawala racket, which is prejudicial to the augmentation of foreign exchange resources of the country.

3. The grounds of detention supplied to the detenus-C.Surendrakumar (2) K.P. Abdul Majeed (3)P. Velusamy contain various details such as opening of bank accounts in fictitious names, transfer of the moneys received from undisclosed source to various accounts in Coimbatore and Kerala, and withdrawal of cash from those accounts etc. The grounds also show the details of name of the bank, current account Number, amount involved, period of transaction, persons concerned, debits and credits in respect of those accounts, account Number, period of transaction etc. It is further seen that on consideration of all those details with facts and figures, the detaining authority has arrived a conclusion that K.P. Abdul Masjeed of Calicut and his son Asarulla Rakka Khan working in Dubai has organised a racket for transferring funds from Dubai to India through unauthorised channels. The said K.P. Abdul Majeed engaged C. Surendrakumar, V. Abdul Kareem for receiving funds in Indian Rupees in Mumbai and Coimbatore. K.P. Abdul Majeed employed Nassar Ali Koya for monitoring the above operations in Mumbai. C. Su