2003 (1) TMI 657

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.... orders issued by the authorities under the provisions of the Conservation of Foreign Exchange and Prevention of Smuggling Act, 1974 (hereinafter referred to as 'the COFEPOSA Act'). A show cause notice was issued on 29th October, 1976, inter alia, as to why forfeiture of one-tenth property of the appellant shall not be effected. On 29th April, 1980, the respondent-Authorities recorded additional reasons for forfeiture of the said property by including the ground as such the appellant being a related person, comes within the scope of the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 (in short 'the SAFEMA') and the property held by her, namely, one-tenth share in Syed Villa as well as the property in Rose Vill....

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....of special leave petitions. 6. Shri H.N. Salve, learned senior counsel appearing for the appellant urged that these cases stand concluded by the decision of this Court in the case of Attorney General for India and Ors. v. Amratlal Prajivandas and Ors., , wherein it was held as thus: "It would thus be clear that the connecting link or the nexus, as it may be called, is the holding of property or assets of the convict/detune or traceable to such detune/convict. Section 4 is equally relevant in this context. It declares that "as from the commencement of this Act, it shall not be lawful for any person to whom this Act applies to hold any illegally acquired property either by himself or through any other person on his behalf". All such pro....

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....properties are not "illegally acquired properties" within the meaning of Section 3(c). In this view of the matter, there is no basis for the apprehension that the independently acquired properties of such relatives and associates will also be forfeited even if they are in no way connected with the convict/detenu. So far as the holders (not being relatives and associates) mentioned in Section 2(2)(e) are concerned, they are dealt with on a separate footing. If such person proves that he is a transferee in good faith for consideration, his property - even though purchased from a convict/detenu - is not liable to be forfeited. It is equally necessary to reiterate that the burden of establishing that the properties mentioned in the show-cause n....