Preventive detention vitiated for ignoring retention of passport, a material fact affecting likelihood of further smuggling activity.

Preventive detention under the COFEPOSA Act was held invalid where the detaining authority failed to consider a material circumstance directly affecting subjective satisfaction. The detenu's passport had been retained in judicial custody, which was relevant to the alleged smuggling pattern because that activity depended on travel in and out of India. Although the grounds showed awareness that the passport was retained, they did not reflect any consideration of the effect of that fact on the likelihood of continued prejudicial conduct. The omission amounted to non-application of mind to a vital fact, vitiating the detention order and rendering it liable to be quashed.

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Issues: Whether the detention order under section 3(1)(i) of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 was vitiated for failure to consider the material fact that the detenu's passport had been retained in judicial custody.

Analysis: The detention was founded on a pattern of smuggling activity said to depend upon the detenu's travel in and out of India. In that setting, the retention of the passport was a relevant and material circumstance bearing directly on the detaining authority's satisfaction as to the likelihood of continued prejudicial activity. The grounds disclosed awareness only that the passport had been retained, but did not show any consideration of the effect of that retention on the alleged smuggling pattern. Since the order did not reflect application of mind to this vital circumstance, the subjective satisfaction stood impaired.

Conclusion: The detention order was invalid for non-consideration of a material fact and was liable to be quashed.

Ratio Decidendi: A preventive detention order is vitiated where the detaining authority fails to consider a material circumstance that is directly relevant to its subjective satisfaction and to the likelihood of future prejudicial conduct.

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