2024 (4) TMI 872 - Other - Customs

Seeking grant of bail - custody for more than 41 days - Smuggling - Gold - Indian and Foreign currency - HELD THAT - There is possibility that there may be more recovery and more involvement of the persons who are yet to be arrested. But it is required to note that as per their statement they themselves were not bringing gold from the Dubai but the part of smuggling. It is not disputed that there is huge recovery of Indian and foreign currency with gold and silver bars. But thereafter no further progress in the investigation is shown. Moreover no further statement of the accused is recorded on the basis of further investigation. Already there was sufficient time with the respondent to investigate about his further involvement in the alleged smuggling. The prosecution is suspecting that he may again involved himself in similar type of activity. But care can be taken by imposing certain conditions to prevent him from engaging in smuggling activity. Therefore considering all these circumstances and already the seized currency and other goods were with the respondent it is just and proper to enlarge him bail on certain conditions. Accused is allowed to be released on bail subject to fulfilment of conditions imposed - bail application allowed.

Summary

Issues involved: Bail application u/s 135 of the Customs Act, 1962 for alleged offence of smuggling of gold.

Summary:

Issue 1: Allegations and defense
The applicant was arrested for smuggling gold into India, allegedly sending it to co-accused for distribution. Applicant denies involvement, stating he is focused on construction projects. Co-accused were released on bail, and applicant claims his arrest is based on weak evidence. He cooperated with the investigation and seeks bail.

Issue 2: Respondent's objections
Intelligence Officer objected to the bail application, citing recovery of large sums of cash and gold from the applicant's premises. It is claimed that the applicant admitted his role in smuggling activities. Concerns raised about the applicant's potential to resume smuggling activities if released on bail.

Issue 3: Investigation and prosecution stance
Prosecution argues that the applicant plays a significant role in the smuggling syndicate, with details of the supply chain undisclosed. Fear that releasing the applicant could hinder the investigation, lead to evidence tampering, and impact witness statements. Applicant seen as the mastermind of the smuggling racket with international implications.

Judgment
After considering arguments from both sides, the court allowed the bail application with conditions. The applicant was granted bail upon executing a PR Bond and cash bail. Conditions include restrictions on influencing witnesses, cooperating with further investigation, surrendering passport, seeking court permission for travel abroad, and providing contact details of relatives. The applicant must also report to the authorities at specified intervals until the investigation is completed or further orders are issued.