Retention of seized foreign exchange and documents continues once adjudication proceedings begin under foreign exchange law.

Section 41 of the Foreign Exchange Regulation Act, 1973 permits retention of seized documents for six months, and beyond that period where adjudication proceedings under Section 51 are initiated within time. Once such proceedings have commenced, the authorities may retain the seized foreign exchange and documents until disposal of the adjudication. Because show cause proceedings had already been initiated, mandamus for return of the seized currency and documents was not available.

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Issues: Whether a writ of mandamus could be issued directing return of seized foreign exchange and documents when adjudication proceedings under the Foreign Exchange Regulation Act, 1973 had been initiated within the period prescribed for retention.

Analysis: Section 41 of the Foreign Exchange Regulation Act, 1973 permits retention of seized documents for up to six months, and beyond that period if proceedings under Section 51 are commenced within the prescribed time. The Court held that the relevant question for retention was whether adjudication proceedings had been initiated, and once such proceedings were commenced, the authorities were entitled to retain the seized material until disposal of those proceedings. In view of the admitted fact that show cause proceedings had already been initiated, the petitioner was not entitled to seek mandatory return of the seized currency and documents by writ.

Conclusion: The writ relief was not available and the request for return of the seized currency and documents failed.

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