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A. Tajudeen v. Union of India

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 5773 of 2009)Decided 10 Oct 2014
Civil Appeal No. 5773 of 2009
Justice J.S. Khehar · Justice C. Nagappan

Background

The Enforcement Directorate recovered Rs. 8,24,900 from Tajudeen's residence and alleged that he had received it through an unauthorized channel on behalf of a Singapore resident. Statements attributed to him and his wife were withdrawn at their first opportunity on the ground of coercion. Authorities confiscated the money and imposed a Rs. 1 lakh penalty, which the High Court upheld.

Decision Breakdown

The Supreme Court allowed the appeal and set aside the enforcement action. In this case, the promptly retracted statements could not be the sole basis for guilt without independent corroboration of their material allegations. Investigators had not substantiated the alleged overseas sender or payment route through available independent evidence. Recovery of cash and the newspaper used to wrap it did not prove that the money came through the prohibited channel. The Court ordered immediate return of the confiscated money and the penalty deposited.

Lesson Learnt

Possession of cash does not by itself prove an unlawful overseas payment. Where liability rests on a promptly retracted statement, the reliability of that statement and independent proof of the alleged transaction must be examined.

Official source (sci.gov.in)View Judgment (PDF)

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