USHA AGARWAL vs UNION OF INDIA .

The Supreme Court upheld the preventive detention of Sandip Agarwal under Section 3(1) of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA Act), affirming that his actions constituted smuggling by diverting duty-free imported goods into the domestic market instead of fulfilling export obligations. The Court emphasized the necessity of preventive detention to curb the potential for future illegal activities, given the gravity of the offense and the fraudulent modus operandi employed by the detenu. The Court dismissed the challenge to the detention order, reinforcing the authority's discretion in matters of preventive detention under the COFEPOSA Act.