According to an official release, the tribunal constituted under Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, held for the first time that under section 4 of the Act, "associates of smugglers and foreign exchange manipulators and their relatives" cannot be permitted to keep the properties acquired through violation of FERA regulations.

The appeals filed by Harshad S Mehta and his relatives were dismissed by Justice J Eswara Prasad (chairman) and Kamlesh Shukla (member) holding that Mehta has caused transfer of huge amounts out of the country in conspiracy with others.

The contention of the Counsel for the appellants that Mehta's properties cannot be forfeited as he was not a detenue and that theproperties of his relatives cannot be forfeited as they are not the relatives or associates of the detenues, was not accepted by the tribunal.

It may be noted that Mehta transferred thousands of crore of rupees out of the country through havala transactions in conspiracy with seven others who were detained under COFEPOSA.

Movable and immovable properties of Mehta and that of his relatives, worth several crore of rupees were forfeited by competent authority in Mumbai.