Supreme Court sets aside COFEPOSA detention for Kottayam hawala dealing
The Supreme Court set aside a COFEPOSA detention imposed on a Kottayam man accused of hawala dealing and unlicensed purchase and sale of foreign currency. The detaining authority cited a June 2023 search seizing Rs 6,70,100 in unaccounted cash and alleged Rs 25 crore turnover. The Court quashed the detention for failure to supply relied-upon statements and long delay in deciding representations.
This page records what the cited court, tribunal and government records say happened. Findings belong to the court or authority that made them; this register adds none of its own. Names of private individuals are withheld unless a naming gate clears them.
How we verify →Detention order and confirmation quashed; the detenu was directed to be released forthwith if not required in any other case.
What happened
The Supreme Court recorded that the detention order dated 31st August 2023 was passed by the Detaining Authority under Section 3(1) of the COFEPOSA to prevent future prejudice to augmentation of foreign exchange.
The grounds cited a 19.06.2023 search at the home in Nadakkal, Erattupetta, seizing unaccounted Indian currency amounting to Rs 6,70,100 plus gold and silver, and witness statements and phone material alleging hawala dealings.
The authority alleged the man had indulged in hawala dealings, illegal purchase, sale and carriage of foreign currencies, gathering foreign currency from NRIs without KYC or RBI permission and moving cash by bus via Madurai, with about Rs 25 crore turnover.
The Court held Preetha Pradeep statements were vital links but were not supplied to the detenu, violating the right to make an effective representation, and that Section 5A COFEPOSA could not save the composite ground.
The Court also held representations sent in September 2023 but decided only in June 2024 showed callous delay, and directed that the detenu be released forthwith if not required in any other case.
What the record says
“have indulged yourself in hawala dealings, illegal purchase, sale and carriage of foreign currencies.”
Criminal Appeal No. 3083 of 2024, ground ix — read the full text
A peaceful economic act
The case concerns alleged unlicensed purchase, sale and carriage of foreign currencies; the Supreme Court set aside the preventive detention on procedural grounds.
What we could not confirm
The other supplied page is a separate Kerala High Court detention petition concerning a different detainee; its Rs 1,71,82,506.62 seizure figure should not be attributed to this case. The Supreme Court judgment records Rs 6,70,100 in Indian currency, plus gold and silver. It does not state a FEMA adjudication penalty.