Forfeiture of property unsustainable in absence of nexus between income of detenue & acquisition of property

Competent Authority Vs Ayisath Munawara (Madras High Court)

Madras High Court held that order directing forfeiture of property u/s. 7 of the Competent Authority under the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 is unsustainable as link or the nexus between the income of the detenue and the acquisition of the property is not established.

Facts-

The Competent Authority under the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976, aggrieved by the order setting aside the proceedings of the appellant forfeiting the properties of the first respondent on the ground that they were acquired out of the proceeds of illegal activities of her father K.T.M.S. Mohammed, against whom proceedings under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 were launched, has come up with this appeal.

Conclusion-

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