Retracted confession in foreign exchange contravention upheld where admission was corroborated by recovery and supporting statements.

A penalty for contravention of section 8(1) and section 8(2) of the Foreign Exchange Regulation Act, 1973 was upheld where the appellant admitted unauthorized purchase and sale of foreign exchange at rates other than those prescribed by the RBI. The later retraction was delayed and unsupported by material showing coercion or inducement. The confession was corroborated by recovery of foreign currency and documents from a person found in the appellant's premises, together with that person's statement. A retracted confession may be relied on when it appears true and receives assurance from other evidence, and no satisfactory basis was shown to discard the adjudication findings.

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Issues: Whether the penalty for contravention of section 8(1) and section 8(2) of the Foreign Exchange Regulation Act, 1973, based on the appellant's confessional statement and supporting evidence, was sustainable.

Analysis: The appellant admitted the unauthorized purchase and sale of foreign exchange at rates other than those prescribed by the Reserve Bank of India. The subsequent retraction was delayed and was not supported by any material showing coercion or inducement. The statement stood corroborated by the recovery of foreign currency and documents from the person found in the appellant's premises and by the related statement of that person. A retracted confession can be relied upon when it is found to be true and receives assurance from other evidence, and no satisfactory basis was shown to discard the adjudication findings.

Conclusion: The contravention was proved and the penalty was rightly imposed. The finding of guilt was sustained against the appellant.

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