Retracted confession in foreign exchange proceedings can sustain penalty when corroborated by documents and witness statements.

A retracted confession in foreign exchange contravention proceedings may still support penalty where it is shown to be voluntary and is corroborated by independent evidence. The appellant's statement admitting receipt and payment of Indian currency was not substantiated by any material showing coercion or threat, while seized documents and the statements of recipients supported the disclosure. The objection that denial of cross-examination vitiated the adjudication was rejected because the record already contained proved material sufficient to sustain the findings. The impugned adjudication was confirmed and the monetary penalty maintained.

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Issues: Whether the penalty imposed for contravention of foreign exchange law was sustainable on the basis of the appellant's retracted confessional statement, the seized documents, and the statements of the recipients, and whether denial of cross-examination vitiated the adjudication.

Analysis: The appellant's statement admitting receipt and payment of Indian currency on instructions from a person resident outside India was retracted on the plea of duress, but no material was produced to substantiate coercion or threat. A retracted confession can be relied upon if it is voluntary and receives corroboration. Here, the confession was supported by documents recovered from the appellant's custody and by the statements of the recipients identified on the basis of the appellant's own disclosure. The objection regarding cross-examination was rejected because no adequate basis was shown for displacing the proved material on record.

Conclusion: The penalty and findings of contravention were upheld, and the appeal failed.

Final Conclusion: The impugned adjudication was confirmed and the monetary penalty was maintained.

Ratio Decidendi: A retracted confession may sustain liability when it is found credible and is independently corroborated by documentary and oral evidence.

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