AI Drafter 
TaxTMI 
TaxTMI 
2009 (7) TMI 783
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.... 75,000 respectively. The appellant challenged that order in Appeal No. 95 of 1999 before the Appellate Tribunal for Foreign Exchange. The appeal also came to be dismissed. Therefore, he has preferred this appeal before the High Court. 2. To state in brief, it is the contention of the Enforcement Directorate that on the basis of certain information, residential premises of one Narendra Mirani came to be searched on 11-4-1989 under section 37 of FERA and during the search, besides the Indian currency, different foreign currencies valued at about Rs. 6 lakh were recovered. Some loose sheets were also seized from his house. Premises of certain other persons were also searched during the same investigation. Narendra Mirani stated that whenev....
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....he foreign exchange seized from him during the search was purchased by him from the present appellant. He also stated at what rates he had purchased different currencies from the present appellant. It appears that Narendra Mirani was regularly purchasing foreign currency during his visits to India and he used to take the same abroad without any authority or permission from the Reserve Bank of India. 3. The learned Counsel for the appellant vehemently contended that except the retracted confessional statement of the present appellant and Narendra Mirani, there was no material to establish the charges against the present appellant. He also pointed out that the present appellant was arrested on 12-4-1989 and on 14-4-1989 he had submitted an....
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....which has since been retracted, the Court must bear in mind the attending circumstances which would include the time of retraction, the nature thereof, the manner in which such retraction has been made and other relevant factors. Law does not say that the accused has to prove that retraction of confession made by him was because of threat, coercion, etc., but the requirement is that it may appear to the court as such. 35. In the instant case, the Investigating Officers did not examine themselves. The authorities under the Act as also the Tribunal did not arrive at a finding upon application of their mind to the retraction and rejected the same upon assigning cogent and valid reasons therefor. Whereas mere retraction of a confession may n....
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....ee Judge Bench of the Supreme Court observed as follows in para 20 :- "20. . . . It is the duty of the prosecution to prove the case beyond reasonable doubt. The evidence may consist of direct evidence, confession or circumstantial evidence. In a criminal trial punishable under the provisions of the IPC, it is now well-settled legal position that confession can form the sole basis for conviction. If it is retracted, it must first be tested whether confession is voluntary and truthful inculpating the accused in the commission of the crime. Confession is one of the species of admission dealt with under sections 24 to 30 of the Evidence Act and section 164 of the Code. It is an admission against the maker of it, unless its admissibility is ....
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....ion. The burden is not as high as in the case of an approver or an accomplice in which case corroboration is required on material particulars of the prosecution case. Each case would, therefore, require to be examined in the light of the facts and circumstances in which the confession came to be made and whether or not it was voluntary and true. These require to be tested in the light of given set of facts. The high degree of proof and probative value is insisted in capital offences." (p. 253) In view of this, it is clear that if the confessional statement is retracted, the Court is required to examine whether it was obtained by threat, duress or promise and also whether the confession is truthful. If it is found to be voluntary and trut....
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....s, coercion or because of any inducement from any person in authority. There is no plausible explanation as to why the present appellant did not retract the statement at first available opportunity. He had an opportunity to retract the statement on 12-4-1989 when he was produced before the Magistrate. The case against the present appellant is not based merely on the confessional statements of himself and Narendra Mirani. These confessional statements find corroboration from the recovery of foreign currency of 13 countries from Narendra Mirani. Narendra Mirani had also specifically stated about the rates at which he had purchased some of those currencies from the present appellant. The recovery of the currencies and the details given by Nare....