9911796707
TMI Blog1990 (7) TMI 124X X X X Extracts X X X X X X X X Extracts X X X X ..... etitioners I have come to the conclusion that the petitions are not maintainable, I do not propose to postpone disposal of these cases to any future date. 2. The petitioners herein have questioned the validity of notices issued under Section 6 of the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976. "Whereas, I.............. being the Competent Authority under Section 5 of the Smugglers & Foreign Manipulators (Forfeiture of Property) Act, 1976 (13 of 1976), have on the basis of relevant information available to me, reason to believe that the property described in the Schedule annexed hereto which is/are held by you is/are illegally acquired property within the meaning of clause (c) of Sub Section (1) of Sec. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1947, or the Foreign Exchange Regulation Act, 1973, has been convicted subsequently under either of those Acts and every person in respect of whom an order of detention has been made under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974, is such person to whom the Act shall apply. It also adds to that category every person who is a relative of a person who has been convicted under any of the laws aforementioned or every associate of a person as well as any holder of any property which was at any time previously held by a person convicted under any of those Acts with the exception of transferees of such properties in good faith for consideration. Under the Explanations appended to the said provision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the date on which the contribution is made, to not less than twenty per cent, of the value of the assets of the trust on date. In addition to the above, "associate" in relation to a person also means, where the competent authority, for reasons to be recorded in writing, considers that any properties of such person are held on his behalf by any other person, such other person. The provision with respect of definitions also defines 'illegally acquired property" in relation to any person to whom the Act applies, thus:- "(c) 'legally acquired property', in relation to any person to whom this Act applies, means:- (i) any property acquired by such person, whether before or after the commencement of this Act, wholly or partly out of or by means ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a transferee in good faith for adequate consideration; (B) any property acquired by such person, whether before or after the commencement of this Act, for a consideration, or by any means, wholly or partly traceable to any property falling under item (A), or the income or earnings there from". 5. Since these cases are confined to the legality or otherwise of the notices, I can straightaway quote Section 6 of the Act :- "6 (1) If, having regard to the value of the properties held by any person to whom this Act applies, either by himself or through any other person on his behalf, his known sources of income, earnings or assets, and any other information or material available to it as a result of action taken under Section 18 or otherwise, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e contentions are concerned, the answer can be found in the language of Section 6 itself. The condition precedent to the notice under Section 6 is that the reason for such belief is to be recorded in writing that all or any of such properties are illegally acquired properties including that such properties were held by any person to whom the Act applied either by himself or through any other person on his behalf. The argument that notice should contain a precise information as to the satisfaction meaning thereby the reasons for such belief has to be rejected forthwith, such belief the competent authority was required to record in writing. If there is no such record available, the notice is without jurisdiction. If such a record is available ..... X X X X Extracts X X X X X X X X Extracts X X X X
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