Retracted confession and corroboration sustained foreign exchange liability; coercion was not proved and the contravention remained established.

A retracted confession may sustain liability under foreign exchange law where it is voluntary and corroborated by independent documentary and circumstantial evidence. The Tribunal held that the maker of the statement bears the burden of proving inducement, threat, or coercion, and that burden was not discharged. The appellant's admission of receiving money in India on behalf of a person resident outside India, supported by the record, established contravention of section 9(1)(b) of the Foreign Exchange Regulation Act, 1973. The finding of contravention was upheld, and the penalty was sustained in principle, though reduced in amount.

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Issues: Whether the penalty imposed for contravention of section 9(1)(b) of the Foreign Exchange Regulation Act, 1973 was sustainable on the basis of the appellant's retracted confession and the accompanying documentary and circumstantial evidence.

Analysis: The appellant admitted receiving Rs. 22 lakhs in India on behalf of a person resident outside India. The plea that the statement was coerced was rejected because the burden to prove inducement, threat, or coercion lay on the maker of the statement and was not discharged. A retracted confession can be relied upon when it is shown to be voluntary and is corroborated by independent material. The record contained documentary and circumstantial evidence supporting the admission, and the inability to identify the intermediary who delivered the money did not dislodge the established contravention.

Conclusion: The finding of contravention under section 9(1)(b) was upheld, and the penalty was sustained in principle, but the amount was reduced.

Final Conclusion: The appeal succeeded only to the limited extent of reduction of penalty, while the adjudication on guilt remained undisturbed.

Ratio Decidendi: A retracted confession may form the basis of liability when it is voluntary and sufficiently corroborated, and the burden to prove coercion or inducement rests on the person retracting it.

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