BEFORE RAJESH MALHOTRA, MEMBER, SINGLE BENCH;

APPELLATE TRIBUNAL UNDER SAFEMA: AT NEW DELHI FPA-112/CHN/2019 Smt. Fathumma … Appellant Versus The Competent Authority, Chennai … Respondent Advocates/Authorized Representatives who argued For the Appellant : Sh. K.M. Suresh Chandran, Advocate, For the Respondent : Mr. Y.K. Dubey, Advocate.

FINAL ORDER

28.01.2025 Present appeal is filed by the appellant under section 12 (4) of the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 (herein after Act of 1976), against the impugned order dated 18.02.2019 passed by the Competent Authority, SAFEM (FOP) Act, Chennai in F. No. CA/MUM/2 (b)/H-18/77-78/.

Facts of the Case:

2. As per the facts of the case Sh. K.S. Sulaiman Haji (since deceased), the husband of the present appellant was served upon with the detention order under the provisions of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 vide No. 6424/SSI/75/OM dated 04.09.1975, being “person” under section 2(2)(b) of the Act of 1976. A joint notice under section 6(1) of the Act was issued to him and his family members in CA/BOM/2(b)/H-18/77-78 dated 18.07.1980 in respect of properties mentioned in the following table:

FPA-112/CHN/2019 Page 1 of 10

4 52 cents of land in R.S. No. 60/15 and Rs. 40,000/- plus value Sh. K.S. Mahamood

68/5 of Thalangara Village, District of buildings and Son of Sh.K.S. Kasargod along with building and structures thereon Sulaiman Haji structures thereon The Competent Authority after recording the reasons to believe that the aforesaid assets had been acquired by him in the name of his family members out of illegal funds emanated out of smuggling activities. Accordingly, proceedings were initiated under SAFEMA against him and his family members on the basis of his detention order:

(i) Show-cause notice No. CA/BOM/2(b)/H-18/77-78 dated 18.07.1980 was issued to the Persons Affected on the basis of detention order issued against him on 04.09.1975. The Said show- cause notice was adjudicated by the Competent Authority and all the properties listed therein were forfeited vide forfeiture order in No.CA/

BOM/2(b)/H/18/77-78 dated 22.02.1996.

ii) The Person Affected challenged the above forfeiture order before the Hon'ble Appellate Tribunal for Forfeited Property at New Delhi by filing appeal in FPA No. 51/BOM/96. The Hon'ble Tribunal vide order dated 01.06.1999 upheld the order of the Competent Authority.

iii) The Person Affected then filed a Civil Writ Petition No.6995 of 1999 before the Hon'ble High Court of Delhi challenging the orders of the Competent Authority and the Appellate Tribunal. The said Writ Petition was dismissed vide order dated 26.11.1999 by the Hon'ble High Court of Delhi.

iv) Against the order of the Hon'ble Delhi High Court, the Person Affected filed a Special Leave Petition No.18227/99 before the Hon'ble Supreme Court of India, which was also dismissed of 16.12.1999.

Accordingly, the said forfeiture order attained finality.

v) Thereafter, following three Original Petitions (O.P) were filed before the Hon'ble High Court of Kerala at Ernakulam by the Persons Affected 2 to 4, being the legal heirs of the Person Affected:

a. O.P. No.7783 of 2000 filed by Mrs. K.S. Hamida Banu (PA-2) in respect of the property mentioned at Sr. No. 1 in para 2 of the present show-cause notice.

b. O.P. No.7821 of 2000 filed by Mrs. Fathumma (PA-3) in respect of the properties mentioned at Sr.No.2 & 3 in para 2 of the present show-cause notice.

c. O.P. No.7282 of 2000 filed by Mr. K.S. Mahamood (PA-4) in respect of the property mentioned at Sr.No.4 in para 2 of the present show-cause notice.

vi) The above petitions were filed on the following grounds:

• The properties are in the names of the petitioners who are the wives and son of detenue.

• No notices were given to the petitioners separately; hence no opportunity was afforded to them, thus nullifying the orders, in terms of natural justice.

The Hon'ble High Court of Kerala