Union Of India And Another vs Venkateshan S. And Another

The Supreme Court held that the High Court erred in quashing the detention order under Section 3(1) of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA Act) on the grounds that the alleged violations of the Foreign Exchange Regulation Act, 1973 (FERA) had ceased to be relevant due to its repeal. The Court clarified that preventive detention under COFEPOSA does not require a pending criminal action, and the detaining authority must only be satisfied that the individual poses a threat to foreign exchange augmentation. The appeal was allowed, reinstating the detention order.