Report No. 166

1.5. The Proposed Approach Recognised in the SAFEMA.-

As a matter of fact, this approach was recognised by Parliament more than twenty years ago in the case of smugglers and violators of foreign exchange laws, when it enacted the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 (SAFEMA). The Preamble to the Act reads-

"An Act to provide for the forfeiture of illegally acquired properties of smugglers and foreign exchange manipulators and for matters connected therewith or incidental thereto;

Whereas for the effective prevention of smuggling activities and foreign exchange manipulations which are" having a deleterious effect on the national economy it is necessary to deprive persons engaged in such activities and manipulations of their ill-gotten gains;

And whereas such persons have been augmenting such gains by violations of wealth-tax, income-tax or other laws or by other means and have thereby been increasing there resources for operating in a clandestine manner;

And whereas such persons have in many cases been holding the properties acquired by them through such gains in the names of their relatives, associates and confidants;

Be it enacted by Parliament in the Twenty-sixth Year of the Republic of India as follows:"

(It may be mentioned that all the factors - and many more - mentioned in the said Preamble are present to a much greater degree in the case of corrupt holders of public office.)