Conservation of Foreign Exchange and Prevntion of Smuggling Act 1974

PREFACE

The Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA) was enacted to safeguard the national economy by providing for preventive detention in cases involving activities prejudicial to the conservation and augmentation of foreign exchange and the prevention of smuggling. The Act recognizes the serious economic consequences arising from violations of foreign exchange regulations and organized smuggling activities. It empowers the Central and State Governments, and specially authorized officers, to issue detention orders where such action is considered necessary to prevent specified activities. At the same time, the Act provides a statutory framework concerning the execution and review of detention orders, Advisory Boards, maximum periods of detention, temporary release, revocation, and other related matters. Thus, the legislation seeks to provide a legal mechanism for preventing activities considered harmful to the national economy.