2024 (1) TMI 1130 - HC - Customs

FIR against the Revenue officer and unknown persons pursuant to PIL - Smuggling of substandard, unsafe and unfit betel nuts/areca nuts by fake persons with fake and forged documents in connivance with public servants - the Appellate Tribunal on merits has set aside the order of adjudication which was in term of confiscation and imposition of penalty. - HELD THAT - The petitioner has been served with a notice under Section 160 of the Code of Criminal Procedure, which the petitioner has positively responded. It is the contention of the CBI that in pursuance of the directions in Criminal Public Interest Litigation, the first information report has been registered and investigation is in progress. The issue involved is having vast magnitude having effect on public health, and therefore, at this initial stage the first information cannot be quashed. It is not in dispute that the first information report is against unknown persons, and since last three years the investigation is going on. The petitioner has appeared in pursuance of the notice from the office of CBI. Since yet the petitioner has not been arrayed as an accused, there is no question of quashing of the first information report. However, at present there is no material, rather the investigation is still going on therefore, we refrain ourselves in examining the case of the petitioner on merits. Criminal Writ Petition is allowed and disposed of.

Summary

Issues involved:
The petition sought to quash a first information report (FIR) registered with the CBI/ACB, Nagpur, alleging offences under various sections of the Indian Penal Code and the Prevention of Corruption Act. The petitioner argued that the FIR was lodged based on directions issued by the court in a Criminal Public Interest Litigation, and that the allegations did not pertain to him directly.

Details of the Judgment:

Issue 1: Quashing of FIR
The petitioner contended that the FIR, connected to smuggling activities involving substandard betel nuts, was not directly linked to him. The court noted that the investigation had been ongoing for three years and the petitioner had not been named as an accused yet. The court allowed the petition and disposed of it, directing the Investigating Officer to continue the investigation but to provide 72 hours' notice to the petitioner before taking any coercive action against him.

Issue 2: Adjudication and Appeal
The petitioner had challenged a show cause notice issued by the Director of Revenue Intelligence, which led to an order of confiscation of goods and imposition of a penalty under the Customs Act. The matter was taken to the Customs Excise and Service Tax Appellate Tribunal, which ultimately set aside the order of adjudication on merits, indicating that the adverse order had been overturned.

Issue 3: Allegations and Investigation
The FIR alleged forgery and fraud related to the production of a fake certificate of origin. The CBI contended that the investigation was ongoing and involved multiple stakeholders, including the Sri Lankan Government. The court noted that the investigation had implications for public health and decided that, at this stage, the FIR could not be quashed due to the magnitude of the issues involved.

Conclusion:
The High Court of Bombay allowed the criminal writ petition, directing the Investigating Officer to continue the investigation while providing prior notice to the petitioner before taking any coercive steps. The court emphasized the need for thorough investigation given the complexity and public health implications of the case.