FERA arrest and remand limits: judicial custody was unauthorised absent statutory power and cognizance on complaint.

A person arrested under the Foreign Exchange Regulation Act, 1973 could not be validly remanded to judicial custody by a Magistrate because the Act's arrest power under Section 35 did not make the Enforcement Officer a police officer for all purposes. Section 167(2) of the Code of Criminal Procedure, 1973 therefore did not apply, and Section 309(2) could operate only after cognizance was taken. As Section 61 barred cognizance except on a written complaint by the Director of Enforcement or an authorised officer, and no provision expressly conferred remand power, neither Section 309 nor Section 437 justified the custody order. Detention was accordingly without authority of law.

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Issues: Whether a person arrested under the Foreign Exchange Regulation Act, 1973 could be validly remanded to judicial custody by the Magistrate, and whether his detention was lawful in the absence of cognizance on a complaint.

Analysis: The arrest power under Section 35 of the Foreign Exchange Regulation Act, 1973 is limited to arrest and bail or release on bail-like terms, and does not make the Enforcement Officer a police officer for all purposes. Section 167(2) of the Code of Criminal Procedure, 1973 therefore does not apply to such an arrest. Section 309(2) of the Code of Criminal Procedure, 1973 permits remand only after the Court has taken cognizance, but Section 61 of the Foreign Exchange Regulation Act, 1973 bars cognizance except on a written complaint by the Director of Enforcement or a specially authorised officer. In the absence of any provision conferring remand power, and in view of the Supreme Court authorities relied on, neither Section 309 nor Section 437 of the Code could justify the custody order.

Conclusion: The remand to judicial custody was invalid and the detention was without authority of law.

Ratio Decidendi: A Magistrate cannot remand a person arrested under the Foreign Exchange Regulation Act, 1973 to judicial custody unless the statute expressly authorises such remand after cognizance; in the absence of such authority, continued detention is unlawful.

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