UNION OF INDIA vs VENKATESHAN S.

The Supreme Court addressed the validity of a detention order under Section 3(1) of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA Act) against B. Sankar, who was alleged to be involved in hawala transactions. The High Court had quashed the detention order on the grounds that the underlying violation of the Foreign Exchange Regulation Act, 1973 (FERA) had ceased to exist due to its repeal. The Supreme Court held that the interpretation of the COFEPOSA Act by the High Court was erroneous, emphasizing that preventive detention does not require a prior criminal conviction, and thus the appeal was allowed, reinstating the detention order.