Tue Dec 10 10:42:05 UTC 2024: ## Madras High Court Dismisses 17-Year-Old Petition Against SAFEMA Notices

**Chennai, December 10, 2024** – The Madras High Court dismissed a 17-year-old writ petition filed by the Sri Premananda Trust, challenging notices issued under the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 (SAFEMA). The petition, filed in 2007, contested notices issued by the Union Ministry of Finance in 2005 and 2007.

A Division Bench, comprising Justices S.M. Subramaniam and M. Jothiraman, ruled that the trust had already participated in the inquiry proceedings by submitting a response in 2006. Therefore, the court found no reason to interfere with the notices and dismissed the case. The Bench stated the trust was obligated to continue participation and prove its properties were not liable for forfeiture under SAFEMA.

The trust was established by Swami Premananda, convicted in 1997 for multiple rape and murder charges and sentenced to two consecutive life terms. Following his conviction, the Income Tax department conducted searches at the ashram, uncovering significant assets, including land, deposits in multiple bank accounts, foreign currency, and evidence of hawala transactions. Premananda was also convicted under the Foreign Exchange Regulation Act of 1973. The SAFEMA proceedings were subsequently initiated to forfeit the trust’s properties.

The court rejected the trust’s argument that the notices were not served on a competent person, emphasizing the trust’s responsibility to participate in the inquiry and provide the necessary proof. The judgment highlights the long-running legal battle surrounding the assets of the trust and the consequences of its founder’s criminal convictions.

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