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2. The facts required for determination of the points involved in this case are largely undisputed. The petitioner claims to be a Consultant of long standing, having advised various companies such as Godfrey Phillips India Ltd., India Tobacco Company Ltd., Tata Tea etc. for the export of cigarettes, tobacco, Tea and other commodities to Russia. It is averred that he set up his own business sometime in 1992, for export of such commodities. The Petitioner claims to have been appointed as Consultant to a Russian Company, called ENERGIA which specializes in construction of Hydro and Thermal Power Stations. It is stated that he continues in the capacity as such a Consultant. In October, 2005, the Media and various Newspapers carried reports relating to the Volcker Report, which had named several persons as recipients of favors, for facilitating in the Iraqi 'Oil for Food' Programme. The petitioner's son Mr. Andleeb Sehgal and his concern, Hamdan Export were also named.

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7. The respondents aver that investigations for violation of FEMA were initiated in November 2005 on the basis of Volcker Committee Report regarding purchase of oil , in violation of UN arrangement that certain Indian individuals/concerns under the Oil for Food Programme of United Nations. It is also alleged that investigations are at a crucial stage; the Directorate is in the process of collecting evidence regarding the allegations including from sources outside India. The petitioner?s son Andleeb Sehgal is named in the Volcker Committee Report as a person who handled transactions involving payments, in violations of provisions of FEMA. He is one of the co-directors in the Company along with the petitioner.

13. Mr. Sawhney urged that the Income Tax Act (Section 131) and FEMA (Section 37) are not procedures prescribed by law for denying/depriving a citizen of his Constitutional Right under Article 21 of the Constitution.

14. It was lastly submitted that the petitioner?s present passport, No. Z 1378210 was issued in the year 2005. The Volcker Committee Report refers to contracts and transactions that were alleged to have taken place in the year 2001. The petitioner?s passport issued in the year 2005 has no relevance in connection with those matters. Reliance was placed on the decision of this High Court in K.T. Advani's case 1989 Comp. Case (66) 886-889. It was urged that the mere circumstance that the petitioner?s son was linked with the Volcker report, could not lead to inference that the petitioner was involved in those transactions. He relied upon balance sheets of the only concern, where the petitioner was a co- director with Andleeb Sehgal, to say that there were practically no inter se transactions; though the relationship could not be denied, yet, there were no close business or financial transactions warranting the detention of the petitioner?s passport. The order impounding the petitioner?s passport did not disclose any cogent, much less convincing reasons or grounds.

35. The impugned order also states that the nature of the mater is sensitive and keeping in mind all the four considerations, the passport of the petitioner, was being impounded. The petitioner has not seriously disputed that the process of investigation into the Volcker Committee Report on Oil for Food Programmes of the United Nations in Iraq are under way. In that report, names of several persons were indicated. The petitioner's son Andleeb Sehgal and his associates were named as persons who handled transactions. Although the petitioner strongly endeavored to state that he had no connection with his sons transaction and that there was only one entry in the balance sheet of Aviv Export House (Private) Limited in which he and his son are co-Directors, the respondents rely on the close relationship of the petitioner and his son and also the fact that the petitioner is now seeking release of his passport to sign a consultancy contract, which was entered into in November 2005 after the Volcker Committee Report became public. These facts were cited as grounds to voice the authorities' apprehensions about his true intentions.