2023 (3) TMI 337 - HC - Customs

Seeking grant of bail - Smuggling - Gold - petitioners admitted their guilt - documents not genuine - HELD THAT - The statements of the apprehended persons were recorded under Section 108 of the Customs Act, 1962 wherein they admitted their guilt and stated that they are engaged in smuggling of gold. After investigation, show-cause notices were issued against the petitioners and others and based on the grounds, the A.D.G, D.R.I, Luckhnow Zonal Unit sanctioned the prosecution against the accused persons including the petitioners. During investigation, the documents produced by the petitioners in favour of the alleged seized gold Biscuits/Bullions were not found genuine. Considering the fact that recovery of gold Biscuits/Bullions from the individual possession of the petitioners are less than Rs. One Crore and the period under custody, let the petitioners, above named, be released on bail on furnishing bail bonds of Rs. 10,000/- each with two sureties of the like amount each to the satisfaction of learned Special Judge, Economic Offences, Patna - Petition disposed off.

Summary

Issues:
1. Custody of petitioners in a case involving violations of Customs Act and Foreign Trade Act.
2. Allegations of smuggling gold from Bangladesh into India.
3. Discrepancies in the seizure and valuation of the gold.
4. Legal arguments regarding the bailability of the offense.
5. Legality of the seizure within Indian territory.
6. Opposition to bail by D.R.I and Customs Department.
7. Evidence presented during investigation including statements and analysis of mobile records.

Analysis:
1. The petitioners are in custody for offenses under Customs Act and Foreign Trade Act. They were apprehended at Gaya Railway Station for carrying smuggled gold from Bangladesh into India. The prosecution alleges violations of specific sections of the mentioned Acts.

2. The petitioners claim innocence and argue that the seized gold was validly purchased and being refined for new jewelry. They assert that the value of the gold was less than Rs. One Crore, making the offense bailable. They challenge the seizure process and the clubbing of separate cases into one to inflate the value.

3. The legality of the seizure within Indian territory is questioned by the petitioners, citing the absence of restrictions on transporting gold within the country since the abolition of the Gold Control Act in 1990. They have been in custody since July 1, 2022, with no prior criminal records.

4. The D.R.I and Customs Department oppose bail, citing admissions by the petitioners regarding possession of smuggled gold. They highlight the recovery process and the value of the seized gold. Investigation findings indicate discrepancies in the documents provided by the petitioners and contradictions in their alibis.

5. Considering the value of the seized gold and the duration of custody, the court grants bail to the petitioners on the condition of furnishing bail bonds and sureties. The release is ordered in connection with a specific Economic Offense (Customs) Case.

6. The judgment balances the arguments presented by both sides, acknowledging the allegations and defenses raised. It emphasizes the need for proper legal procedures and evidence evaluation in determining the bailability and legality of the seizure in question.

7. The decision reflects a cautious approach, taking into account the complexities of the case and the rights of the accused while upholding the principles of justice and due process.