Foreign exchange contravention proved by recovered currency and admissions, with retraction rejected and penalty and confiscation upheld.

Recovered foreign currency, unexplained possession, and admissions in recorded statements were treated as sufficient evidence of contravention of foreign exchange restrictions. The later retraction was rejected because no credible material showed threat, violence, or any circumstance undermining the confessions. Bank deposits did not displace the finding that foreign currency had been sold at a rate other than that prescribed by the Reserve Bank of India, especially where no supporting documents were produced for the relevant year. On that basis, the penalty and confiscation were upheld.

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Issues: Whether the penalty and confiscation imposed for contravention of the foreign exchange restrictions under the Act were sustainable on the basis of the recovered currency, the bank deposits, and the confessional statements.

Analysis: The recovered foreign currency, the absence of any satisfactory explanation for its possession, and the admissions contained in the statements recorded on 16-8-1985 and 14-9-1985 were treated as sufficient evidence of contravention. The later retraction was not accepted, as no convincing material was produced to show threat, violence, or any circumstance rendering the confession unreliable. The deposits in the bank account did not displace the finding that foreign currency had been sold at a rate other than that prescribed by the Reserve Bank of India, particularly when no documentary support was produced for the relevant year.

Conclusion: The penalty and confiscation were upheld, and the appeal failed.

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