ISSUE:
Whether Section 3(1) of the Conservation of Foreign Exchange and Prevention of Smuggling Activities, 1974 (“COFEPOSA”) is constitutionally valid, in light of the repeal of the Foreign Exchange Regulation Act, 1973 (“FERA”)?
Whether preventive detention can exist for activities that are not criminal offences and do not attract any punishment?
RULE:
Preventive detention can exist for illegal activities which though do not attract any punishment, are prejudicial to the security of the State.
The repeal of FERA by the Foreign Exchange Management Act, 1999, does not dilute the control of the Government over foreign exchange.
When a detention order is not executed for more than a year on account of the contumacious conduct of the detenu, he cannot take advantage of his own wrongdoing by challenging the detention order as having lapsed the maximum period.