Md Rustam Sk vs The Union Of India,
2021 Latest Caselaw 2798 AP

     HONOURABLE SRI JUSTICE C. PRAVEEN KUMAR

                                       and

     HONOURABLE SRI JUSTICE B. KRISHNA MOHAN

                    Criminal Appeal No.46 of 2021

JUDGMENT:          (Per Hon'ble Sri Justice C. Praveen Kumar)


         Heard Sri K. Nithin Krishna, learned counsel for the

appellant and Sri N. Harinath, learned Assistant Solicitor

General appearing for the 1st respondent.

2. Assailing the order dated 02.12.2020 passed by the

Metropolitan Sessions Judge-cum-Special Judge for trial of

N.I.A. Act Cases at Vijayawada in E-filing Case

No.AP/10/CRL.M.P./119393/2020 in S.C.No.273 of 2018 in

Rc.No.02/2015/NIA/HYD, wherein the request of the

appellant for release on bail was rejected, the present

Criminal Appeal came to be filed by the appellant/A.2 under

Section 21 (1) (2) and (4) of the National Investigation Agency

Act, 2008.

3. The facts of the case are as under:

i) On 21.09.2015, the officers of DRI, Regional Unit,

Visakhapatnam seized Fake Indian Currency Notes

(FICN) of face value of Rs.5,01,500/- from the

possession of A.1, who is a resident of Manikpur village,

Barpeta District, Assam, at Platform No.4 of 2 CPK, J & BKM, J

CRLA.No.46 of 2021

Visakhapatnam Railway Station. The said seizure came

to be made when A.1 was travelling by Train No.12510

Guwahati-Bengaluru Super Fast Express in Berth

No.11, S-5 compartment. He confessed about

smuggling of fake Indian currency notes into India from

Bangladesh and that he is carrying them to Bengaluru.

A.1 was arrested on 22.09.2015 and remanded to

judicial custody. The seized fake Indian currency notes

were sent for analysis and found it to be high quality

fake/counterfeit Indian Currency Notes. Pursuant

thereto, the Ministry of Home Affairs, Government of

India, vide proceedings No.11034/110/2015-IS-IV,

dated 16.12.2015, directed the NIA to take up the

investigation in this case, which led to re-registration of

the case for the offence punishable under Sections

489B and 489C IPC and Section 15 of the Unlawful

Activities (Prevention) Act, 1967. After investigating the

matter, a charge sheet came to be filed against A.1

initially on 29.07.2016 for the offence punishable under

Section 489B and 489C of IPC and a supplementary

charge sheet came to be filed against others for the

offences punishable under Sections 16, 18, 18B and 20

of Unlawful Activities (Prevention) Act, 1967. At the time

of filing of first charge sheet, permission was obtained 3 CPK, J & BKM, J

CRLA.No.46 of 2021

from the court to continue further investigation against

the petitioner/ A.2 and A.4.

ii) Basing on the information available, A.2, who is the

petitioner/appellant, was arrested on 10.04.2018 in the

presence of independent witnesses. During the

custodial interrogation, he disclosed his involvement

and arrest in 2012 and his release in

June, 2015. Thereafter, he returned to his native village

Palagachi in Malda, West Bengal, and met one Faruk,

who asked him whether he is having any links with the

persons involved in procurement/circulation of fake

currency notes. It is said that while in custody, A.2

developed contact with A.3 and A.6 and after release he

maintained contacts with them. According to him, he

provided the mobile number of A.3 to Faruk and also

communicated with A.3, by which Faruk will supply

fake Indian currency notes to him. The said Faruk also

asked the petitioner to open a bank account so that A.2

can receive deposits in lieu of supply of fake Indian

currency notes. Accordingly, A.2 opened an account in

Axis Bank in July, 2015 in the name of his wife

Murtara Bibi with an amount of Rs.7,000/- given by

Faruk, and thereafter, a large sums of money came to 4 CPK, J & BKM, J

CRLA.No.46 of 2021

be transferred from various branches of Axis Bank in

the account of the wife of A.2.

iii) It is the case of the prosecution that the petitioner

supplied fake Indian currency notes of face value worth

Rs.40 lakhs to A.3 and others, operating at Bengaluru.

In the month of August, 2015, he provided FICN of face

value of Rs.4-5 lakhs to A.1 in a Hotel adjacent to New

Farakka Railway station. According to him, from July,

2015 to March, 2016, about Rs.30 lakhs fake Indian

currency notes were supplied through A.1, A.3 and A.6.

Pursuant to the above statement, one Samsung mobile

and five SIM cards were seized from the possession of

A.2, and the same were sent to CFSL, Hyderabad,

which, on examination, revealed that the petitioner is in

touch with A.6 during the relevant period.

iv) Ameer Akram Shekh, brother of A.2, was examined as

the CAF of mobile number 9775162724 was in his

name. He disclosed about the purchase of SIM using

his identity document i.e. Aadhar Card

No.516113190579 and his photograph. But, however,

he disowned the signature affixed on the CAF. He

denied the usage of said mobile number and also states

that he had no knowledge about the illegal activities of

his brother.

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v) An analysis of the mobile phone of A.2 also shows that

he was found to be in contact with A.1 and A.3 during

the relevant period. The details of account opened in

the name of Murtara Bibi, wife of A.2 show that it was

opened on 17.06.2015 and closed on 05.10.2017.

During that period, huge amounts came to be deposited

in that account. The said Maurtara Bibi was examined

as LW.54 wherein she stated that she was not aware of

the opening of bank account, in Axis Bank, in her name

and she had no knowledge about the transactions made

therein. Basing on these allegations, a supplementary

charge sheet came to be filed against the petitioner/A.2.

An application for bail was moved before the trial Court,

which was rejected. Challenging the same, the present

Criminal Appeal came to be filed.

4. Sri K. Nithin Kumar, learned counsel for the appellant,

mainly submits that there is absolutely no material against

the petitioner to connect him with the crime. He submits that

except the alleged confession made before the police, which is

inadmissible in evidence, no incriminating material has been

seized from the possession of the petitioner/A.2. He submits

that opening of an account and the deposit of amounts in the

Axis Bank was not to the knowledge of the petitioner and as 6 CPK, J & BKM, J

CRLA.No.46 of 2021

such, the prosecution failed to prove the culpability of the

petitioner/A.2 in the crime.

5. The same is opposed by Sri N. Harinath, learned

Assistant Solicitor General, contending that though the case

started with the confession of the accused, but the material

collected during the course of investigation amply establish

the involvement of the petitioner in the crime. According to

him, the petitioner who is a habitual offender was arrested in

Bangalore in the year 2012 for offences of this nature and

three years, later in the year 2015 he was released on bail.

Thereafter, he again involved himself in similar offences. He

pleads that if the petitioner is released on bail now, there is

every possibility of he escaping to Bangladesh in which event

the entire proceedings gets stalled. He further submits that

the statement of LW.54, who is the wife of A.2, clearly

demonstrates the involvement of the A.2 in the crime.

6. As seen from the record, the petitioner herein is now

charged with the offences punishable under Section 489B

and 489 C and Sections 16, 18, 18B and 20 of Unlawful

Activities (Prevention) Act, 1967.

"16. Punishment for terrorist act.--(1) Whoever commits a terrorist act shall,-- (a) if such act has resulted in the death of any person, be punishable with death or imprisonment for life, and shall also be liable to fine; (b) in any other case, be punishable with imprisonment for a term which shall not be less than five years but which may extend to imprisonment for life, and shall also be liable to fine.

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18. Punishment for conspiracy, etc.--Whoever conspires or attempts to commit, or advocates, abets, advises or 3 [incites, directly or knowingly facilitates] the commission of, a terrorist act or any act preparatory to the commission of a terrorist act, shall be punishable with imprisonment for a term which shall not be less than five years but which may extend to imprisonment for life, and shall also be liable to fine.

18B. Punishment for recruiting of any person or persons for terrorist act.--Whoever recruits or causes to be recruited any person or persons for commission of a terrorist act shall be punishable with imprisonment for a term which shall not be less than five years but which may extend to imprisonment for life, and shall also be liable to fine.]

20. Punishment for being member of terrorist gang or organisation.--Any person who is a member of a terrorist gang or a terrorist organisation, which is involved in terrorist act, shall be punishable with imprisonment for a term which may extend to imprisonment for life, and shall also be liable to fine."

7. A perusal of the charge sheet show that high quality of

fake/counterfeit Indian currency notes were pumped into the

country by notorious gangster operating from Bangladesh.

These high quality fake Indian currency notes were in two

highest denominations i.e. Rs.1000 and Rs.500 notes and the

amounts alleged to have been seized is running into lakhs of

rupees. Further, SPMCIL, Nasik in its report opined that

such fine quality paper making, printing and finishing on

large scale could only be achieved by using highly

sophisticated paper making and ultra-modern printing

machines, which a common man cannot acquire, since such

machines involve large scale infrastructure and huge capital

investment and such type of paper is not sold in open 8 CPK, J & BKM, J

CRLA.No.46 of 2021

market. The said paper is manufactured and sold under

restricted conditions to the purchaser for printing bank notes

and other security products as per the required

specifications. Therefore, the authorities, opined that a

foreign hand in the conspiracy is involved to damage the

monetary stability of the country. Keeping this aspect in

mind, we shall now deal with the matter.

8. It is also to be noted that the petitioner is a habitual

offender involved in various offences in Karnataka and West

Bengal State viz., (1) Crime No.161 of 2012 of

Sampanigramnagar Police Station, Bengaluru registered on

10.09.2012 for the offences punishable under Section 489B,

489C and 120B IPC and Sections 3, 25 and 27 of the Arms

Act and Sections 13, 15, 16 and 17 of Unlawful Activities

(Prevention) Act, 1967; (2) Crime No.545 of 2017 of

Baishanabnagar Police Station, Malda District, West Bengal

registered on 24.07.2017 for the offences punishable under

Sections 147, 148, 326, 308 IPC and Sections 3 and 4 of the

Explosives Substances Act; and (3) Crime No.546 of 2017 of

Baishnabnagar Police Station, Malda District, West Bengal

registered on 24.07.2017 for the offences punishable under

Sections 143, 447, 326, 308/341 IPC and Sections 25 and 27

of the Arms Act and Sections 3 and 4 of Explosive

Substances Act. It is also to be noted that the petitioner is 9 CPK, J & BKM, J

CRLA.No.46 of 2021

involving himself in offences of circulation of FICN again and

again, which indicates the intention of the petitioner to

commit such offences. As stated earlier, the petitioner, after

his release in the year 2015, is involved in two more cases,

which are referred to above and in the present crime as well.

He is a resident of Bhimagram, Palgachhi, Sulthanganj, West

Bengal and the apprehension of the learned Assistant

Solicitor General that there is every likelihood of he crossing

the border, if released, cannot be ruled out.

10. Coming to the merits of the case, the record shows that

after his arrest on 10.04.2018, the petitioner/A.2 made a

statement, which led to discovery of many facts, more

particularly, opening of an account in Axis Bank in the name

of his wife with an initial amount of Rs.7,000/- and later

huge amounts came to be transferred into that account from

different branches of Axis Bank. The statement of account

show that about Rs.10,39,000/- was deposited in the said

account between August, 2015 and January, 2016 by A.3

and other associates. The forensic analysis of the cell phone

revealed that the petitioner was in regular touch with A.1,

A.3 and A.6. Hence, prima facie, he cannot plead ignorance of

the offence committed by him.

11. At this stage, two things are required to be noted,

firstly, LW.54, who is the wife of the petitioner, pleaded 10 CPK, J & BKM, J

CRLA.No.46 of 2021

ignorance about the opening of an account and operating the

said bank account by her husband, and secondly, Ameer

Akram Shekh, brother of the petitioner/A.2 was examined, as

the CAF of mobile number 9775162724 was in his name.

According to him, the petitioner purchased the said SIM

using his identity document i.e. Aadhar Card

No.516113190579 and his photograph. He disowned the

signature affixed on the CAF. He further stated that he never

used the said mobile number and he had no knowledge

about any illegal activities of his brother. The two

circumstances makes it clear that the petitioner is not only

involved in opening of bank account but also using SIM cards

of others for his illegal activities.

12. Having regard to the history of the petitioner and his

involvement in the present crime wherein he supplied high

quality of fake Indian currency notes of face value worth

Rs.40 lakhs to A.3 and others operating at Bengaluru and

also supplied fake Indian currency notes of face value worth

Rs.4 to 5 lakhs to A.1 in a hotel adjacent to New Farakka

Railway station and taking into consideration the fact that in

offences of this nature, namely trafficking of forged

counterfeit currency notes, pose a challenge to the economy

of the country, which virtually amounts to waging a financial 11 CPK, J & BKM, J

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war against the country, we hold that it is a not a fit case to

grant bail to the petitioner/A.2.

Accordingly, the Criminal Appeal is dismissed.

Consequently, miscellaneous petitions pending, if any,

shall stand closed.

_________________________ C. PRAVEEN KUMAR, J

________________________ B. KRISHNA MOHAN, J

Date: 03-08-2021 Ksn