2020 (9) TMI 953 - HC - Customs

Grant of Bail - smuggling of Gold - breach of Section 135(1)(b) of the Customs Act, 1962 - HELD THAT - In the present case as well, learned counsel for the nonapplicant has infact admitted that investigation as against the applicant has already been completed and only sanction to prosecute the applicant is remained to be obtained and it is only then the charge-sheet would be filed - It is true that no gold has been seized from the possession of the applicant, as per own admissions made by the counsel for the non-applicant, as investigation in respect of applicant has already been completed hence, in view of such situation, the bail application is liable to be allowed. Without commenting upon the merits of the case, this bail application is allowed and it is directed that applicant Rajesh Neema shall be released on bail subject to his furnishing a personal bond in the sum of ₹ 2,00,000/- with one local surety to the satisfaction of the concerned Trial Court/Committal Court for his regular appearance before the Trial Court/Committal Court on all dates of hearing as may be fixed in this behalf by the Court concerned during trial. Application allowed.

Summary

Issues:
Grant of bail under Section 439 of Cr.P.C. for the offense under Customs Act, 1962 read with IPC. Investigation completion, sanction to prosecute pending, no gold seized from the accused, legal implications of the case.

Analysis:

1. Bail Application under Section 439 of Cr.P.C.:
The applicant, Rajesh Neema, filed a bail application under Section 439 of the Criminal Procedure Code (Cr.P.C.) before the High Court. He was implicated in a case registered at the DRI Zonal Unit, District Indore, for offenses under Sections 135(1)(b) of the Customs Act, 1962, along with Sections 467, 471, and 120-B of the Indian Penal Code (IPC). The applicant had been in custody since 09.07.2020. The applicant's counsel argued that his detention was illegal as no sanction had been obtained for prosecution, and no private complaint had been filed against him.

2. Completion of Investigation and Sanction to Prosecute:
The non-applicant's counsel contended that although the investigation was complete, sanction to prosecute the applicant had not been obtained. The prosecution's case alleged that the applicant was involved in the transportation of imported gold, misrepresenting it as Indian gold, thereby violating Section 135(1)(b) of the Customs Act, 1962. The Customs Department had taken action based on a report from a goldsmith confirming the gold as imported and smuggled.

3. Precedents and Legal Arguments:
During the proceedings, the applicant's counsel cited a bail order from the Kerala High Court involving a case of gold smuggling. The counsel referred to legal precedents, including cases like Santosh Kumar Singh vs. CBI and Sanjay Chandra vs. CBI, emphasizing that once the investigation is completed, bail can be granted. The non-applicant's counsel acknowledged that the investigation against the applicant was concluded, and only the sanction to prosecute was pending.

4. Grant of Bail and Conditions:
Considering the completion of the investigation, lack of seized gold from the applicant, and the nature of the offense under Section 135 of the Customs Act, which carries a maximum punishment of 5 years, the High Court allowed the bail application. The court directed the release of the applicant on bail upon furnishing a personal bond of ?2,00,000 with one local surety. The applicant was required to surrender his passport, comply with all conditions under Section 437(3) of the Cr.P.C., and refrain from engaging in criminal activities. Violation of bail conditions would result in the cancellation of the bail order without reference to the Court.

5. Conclusion:
The High Court allowed the bail application, emphasizing the completion of the investigation, absence of seized gold from the applicant, and the nature of the offense. The court imposed specific conditions for the applicant's release on bail, ensuring compliance and deterrence from further criminal activities. The order was to be communicated to the concerned Court for necessary action and compliance.

This detailed analysis highlights the key legal aspects and proceedings of the judgment, focusing on the grant of bail in a case involving offenses under the Customs Act, 1962, and the IPC.