1996 (7) TMI 461 - SC - Companies Law

Enforcement officers appointment and powers of Power to summon persons to give evidence and produce documents

Summary

Issues Involved:
1. Jurisdiction of the CBI under FERA.
2. Applicability of the Code of Criminal Procedure to FERA offences.
3. Validity of notifications under DSPE Act for investigating FERA offences.
4. Investigation of offences committed outside India.

Issue-wise Detailed Analysis:

1. Jurisdiction of the CBI under FERA:
The appeal contested the jurisdiction of the Central Bureau of Investigation (CBI) to investigate offences under the Foreign Exchange Regulation Act (FERA). The CBI sought permission to investigate under section 155(2) of the Code of Criminal Procedure, 1973, which was denied by the Chief Judicial Magistrate (Economic Offences), Jaipur. The Magistrate noted that no notification empowered the CBI under sections 4 and 5 of the FERA to investigate FERA offences. The High Court upheld this decision, stating that the reasoning of the Chief Judicial Magistrate was justified.

2. Applicability of the Code of Criminal Procedure to FERA offences:
The appellant argued that section 5 of the FERA empowers the Central Government to entrust functions to various officers, including police officers, thus allowing the CBI to investigate FERA offences. However, the respondent contended that the FERA is a special law with specific provisions for investigation and trial, rendering the Code of Criminal Procedure inapplicable. The Supreme Court agreed with the respondent, stating that the FERA is a self-contained code, and section 5 of the Code of Criminal Procedure does not apply to FERA offences.

3. Validity of notifications under DSPE Act for investigating FERA offences:
The appellant argued that the offences under the FERA were notified for investigation by the CBI under the Delhi Special Police Establishment Act (DSPE Act), with the consent of the Government of Rajasthan. The Supreme Court acknowledged that notifications under sections 3 and 5 of the DSPE Act authorized the CBI to investigate FERA offences in Rajasthan. However, the Court emphasized that the FERA requires specific authorization for officers to exercise powers under the Act. Since no such notification was issued under the FERA authorizing CBI officers, they could not investigate FERA offences.

4. Investigation of offences committed outside India:
The respondent argued that the CBI could not investigate offences committed outside India without the permission of the Central Government under section 188 of the Code of Criminal Procedure. The Supreme Court concurred, stating that the DSPE Act does not authorize the CBI to investigate offences committed outside India. The Court noted that the allegations involved offences committed in the United Kingdom, and without the necessary permission, the CBI could not proceed with the investigation.

Conclusion:
The Supreme Court dismissed the appeal, upholding the decisions of the Chief Judicial Magistrate and the High Court. The Court ruled that the CBI lacked the jurisdiction to investigate FERA offences without specific authorization under the FERA and could not investigate offences committed outside India without the Central Government's permission. The writ petition challenging the notification under the DSPE Act was disposed of in light of the judgment.