Case Law Details
Platinum Theatre And Others Vs Competent Authority Smugglers & Oreign Exchange Manipulators (Supreme Court of India)
Supreme Court held that forfeiture of property in exercise of power under section 7 of Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 justifiable in absence of proper explanation as to the source of acquisition and as majority of investment remains unexplained.
Facts- The instant appeal is directed against the judgment and order passed by Single Judge of the High Court of Karnataka at Bangalore upholding the order passed by the competent authority under Section 7 read with 19(1) of the Smugglers and Foreign Exchange Manipulators(Forfeiture of Property) Act, 1976 dated 31st December 1997.
The partners of the first appellant, namely, N.A. Yusuf, was ordered to be detained by the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA) by order dated 21st January 1985 by the Government of Maharashtra and later by the Central Government by order dated 27th August 1991.
On 16th October 1994, a show cause notice was issued to the first appellant firm and its partners calling upon them to explain why the subject theatre (M/s. Platinum Theatre) should not be forfeited. The competent authority, in the first instance, passed an order of forfeiture against the first appellant firm forfeiting M/s. Platinum Theatre. However, on appeal, the matter was remanded back to the competent authority for fresh consideration by order dated 17th July 1997.
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