Retracted confession and corroboration in foreign exchange offences sustain liability where independent evidence supports the admission.

A retracted confession may still support liability where it appears voluntary and is corroborated by independent documentary and circumstantial evidence. In this foreign exchange matter, the admission of unauthorised purchase and sale of foreign exchange was supported by recovery of foreign exchange, Indian currency, incriminating documents, and lawful search and seizure records. Minor discrepancies in witness testimony were treated as immaterial, and the standard of proof in such economic offences was held not to require mathematical precision. On that basis, contravention of sections 8(1) and 8(2) of the Foreign Exchange Regulation Act, 1973 was proved and the penalty and confiscation order were sustained.

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Issues: Whether the appellant's contravention of section 8(1) and section 8(2) of the Foreign Exchange Regulation Act, 1973 was proved and the penalty and confiscation order were liable to be sustained.

Analysis: The appellant's statement admitting unauthorised purchase and sale of foreign exchange was retracted, but the retraction was not supported by material showing coercion or duress. The statement was corroborated by the recovery of foreign exchange, Indian currency, and incriminating documents from the searched premises and by the seizure proceedings and panchnama. The evidence showed that the search and seizure were conducted in accordance with law, and the discrepancies in witness testimony were held immaterial. The standard of proof in such economic offences does not require mathematical precision, and the record furnished adequate corroboration for the confession and surrounding circumstances.

Conclusion: The contravention under section 8(1) and section 8(2) of the Foreign Exchange Regulation Act, 1973 was proved, and the penalty and confiscation order were upheld against the appellant.

Ratio Decidendi: A retracted confession can form the basis of liability if it is found voluntary and is sufficiently corroborated by independent documentary and circumstantial evidence, especially in quasi-criminal economic offences where proof beyond mathematical precision is not required.

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