Bail in foreign exchange contravention cases may be refused where prima facie complicity could impede investigation and evidence.

Bail under the Foreign Exchange Regulation Act, 1973 was declined where prima facie material suggested active participation in alleged foreign exchange contraventions and the investigation remained ongoing. The Court treated the matter as a serious economic offence and held that, at the investigative stage, the proper enquiry was limited to prima facie involvement and the risk that release could hamper investigation or tamper with evidence. It further held that parity with another accused is insufficient unless the accusations and material are identical. On those grounds, arrest and detention were justified and release was refused.

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Issues: Whether bail should be granted to a person accused of contraventions under the Foreign Exchange Regulation Act, 1973, having regard to the prima facie material, the seriousness of the economic offence, and the apprehension of interference with investigation.

Analysis: The petitioner was alleged to have actively participated in and consented to foreign exchange transactions said to be in breach of the Act. The Court treated the accusation as serious, involving an economic offence with cross-border investigation still in progress and witnesses yet to be examined. It held that bail cannot be granted merely on the basis of parity with another accused unless the accusations and material are identical. The Court also held that at the stage of investigation it was not proper to embark upon an elaborate assessment of the merits, but only to see whether there was a prima facie case and whether release would likely hamper the investigation or lead to tampering with evidence.

Conclusion: Bail was refused. The Court found sufficient justification for the arrest and detention at the investigative stage and held that release would not be in the circumstances.

Ratio Decidendi: In a serious economic offence under the Foreign Exchange Regulation Act, 1973, bail may be declined where there is prima facie material showing complicity and release is likely to impede ongoing investigation or affect evidence.

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