Unauthorised foreign exchange dealing proved by admitted statement, delayed retraction, and corroborating evidence; penalty upheld.

Unauthorised dealing in foreign exchange was established where the appellant admitted purchase and sale of foreign exchange, then retracted the statement without producing evidence of threat or coercion. The burden to prove coercion lay on the maker of the statement, and the delayed retraction weakened its value. The admission was further corroborated by surrounding circumstances and by the recipient's statement showing conversion at unauthorised rates. Contravention of section 8(1) and section 8(2) of the Foreign Exchange Regulation Act, 1973 was therefore proved, and the penalty was upheld.

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Issues: Whether the appellant had contravened the restrictions on dealing in foreign exchange and whether the penalty imposed for such contravention was liable to be set aside.

Analysis: The appellant's statement admitting purchase and sale of foreign exchange was retracted on the plea of threat and coercion, but no evidence was produced to substantiate that plea. The burden to prove coercion lay on the maker of the statement, and the retraction was not made at the earliest opportunity. The admitted statement was also supported by surrounding circumstances and by the statement of the recipient of the foreign exchange, which showed unauthorised dealing in foreign exchange and conversion at unauthorised rates.

Conclusion: The contravention of section 8(1) and section 8(2) of the Foreign Exchange Regulation Act, 1973 was established, and the penalty was upheld. The appeal was dismissed.

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