Dropti Devi & Anr vs Union Of India & Ors

The Supreme Court examined the constitutional validity of Section 3(1) of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA), which allows for preventive detention to safeguard foreign exchange. The Court held that the provision is constitutional, emphasizing that preventive detention is permissible under Article 22(1) and (2) of the Constitution, provided it serves a legitimate purpose. The detention order against Raj Kumar Aggarwal was upheld as it was based on sufficient grounds related to hawala activities, thus affirming the authority's decision to prevent actions prejudicial to foreign exchange conservation.