In Brief
These consolidated appeals challenge Delhi and Bombay High Court orders upholding forfeiture of properties under the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 (SAFEMA). The appellants argued that revocation of detention orders under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA), and dismissal of related criminal complaints, rendered SAFEMA proceedings invalid. The Supreme Court held that SAFEMA applies to persons against whom COFEPOSA detention orders were made, subject only to four specified statutory exceptions. Since the appellants' detention orders were revoked on grounds not covered by these exceptions (pursuant to an undertaking for criminal prosecution), they remained subject to SAFEMA. The Court dismissed both appeals, upholding the forfeiture orders.
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