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The Supreme Court upheld the detention order under Section 3(1) of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA Act), affirming the legality of the order issued by the authorities based on the detenue's alleged violations of the Foreign Exchange Regulation Act, 1973 (FERA). The Court rejected the appellant's argument that the detenue's status as an NRI exempted him from COFEPOSA provisions, confirming that the detention was justified given the evidence of financial misconduct. The appeal was dismissed, affirming the High Court's decision.