Court upholds search under FEMA, dismisses petition. No violation of Fundamental Rights. Cooperation with investigation directed.

The court dismissed the writ petition challenging the search and seizure conducted under the Foreign Exchange Management Act, 1999. The search was found to be valid, based on a "reason to believe" that the petitioner had contravened FEMA provisions. The court ruled that the search did not violate the petitioner's Fundamental Rights under the Constitution of India and directed the petitioner to cooperate with the investigation. No costs were awarded, and the case was closed.

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Issues Involved:
1. Validity of the search and seizure conducted under Section 37 of the Foreign Exchange Management Act, 1999.
2. Alleged violation of Fundamental Rights under Articles 14 and 21 of the Constitution of India.
3. Compliance with procedural requirements and "reason to believe" for conducting the search and seizure.

Summary:

1. Validity of the Search and Seizure:
The petitioner challenged the search and seizure conducted on 01.12.2017 at his residential and hospital premises, claiming it was without jurisdiction, vitiated by malice, and an abuse of authority. The petitioner argued that the search did not yield any incriminating material, and the foreign currency found was within permissible limits and returned. The respondents contended that the search was based on "reason to believe" that the petitioner had contravened provisions of FEMA, supported by intelligence information and digital evidence of significant foreign transactions.

2. Alleged Violation of Fundamental Rights:
The petitioner claimed that the search and seizure were arbitrary and violated his Fundamental Rights under Articles 14 and 21 of the Constitution of India. The respondents argued that the search was conducted following due process, and the petitioner was provided opportunities to produce relevant documents and evidence. The court found that the search and seizure were conducted in accordance with the law and did not violate the petitioner's rights.

3. Compliance with Procedural Requirements and "Reason to Believe":
The petitioner argued that the search was conducted without a valid "reason to believe" and lacked application of mind, rendering it invalid. The court referred to the Supreme Court's judgment in Director General of Income Tax (Investigation), Pune and Others Vs. Spacewood Furnishers Private Limited and Others, emphasizing the necessity of a reasonable belief and application of mind for issuing a search warrant. The respondents presented the original files and intelligence information justifying the search, demonstrating compliance with procedural requirements. The court concluded that there was a prima facie case for conducting the search based on the information available, and the petitioner was required to cooperate with the investigation.

Conclusion:
The court dismissed the writ petition, stating that the petitioner failed to establish any grounds for interference. The search and seizure were deemed legal and in accordance with FEMA, 1999, and the petitioner was directed to cooperate with the ongoing investigation. No costs were awarded, and connected miscellaneous petitions were closed.

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