Voluntary retracted confession can sustain foreign exchange contravention when corroborated by surrounding evidence and circumstances.

Contravention of the foreign exchange restrictions was found where the appellant admitted receiving money arranged through a person resident outside India and making the onward payment in the manner alleged by the enforcement authorities. The retraction of the confessional statement on the ground of coercion was rejected because no evidence showed threat, inducement, or undue influence, and the retraction was not made at the earliest opportunity. The statement was corroborated by surrounding circumstances, including recovery of currency and the involvement of a person resident outside India. A retracted confession may be relied on when it is voluntary and supported by the record, so the penalty was upheld.

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Issues: Whether the appellant had contravened the restrictions on receipt and payment of foreign exchange under section 9(1)(b) and section 9(1)(d) of the Foreign Exchange Regulation Act, 1973, and whether the penalty imposed could be sustained despite retraction of the confessional statement.

Analysis: The record showed that the appellant had admitted receipt of money arranged through a person resident outside India and its onward payment in the manner described by the enforcement authorities. The appellant retracted the statement on the ground of coercion, but no evidence was produced to establish threat, inducement, or undue influence. The retraction was not made at the earliest opportunity. The statement was also supported by surrounding circumstances, including the recovery of currency and the involvement of a person resident outside India. A retracted confession can be relied upon when it is found to be voluntary and is corroborated by the evidence on record.

Conclusion: The contravention was proved, the confessional statement was treated as voluntary and reliable, and the penalty was upheld.

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