Delhi High Court
Prit Pal Singh vs Directorate Of Revenue ... on 11 August, 2009
Author: Gita Mittal
IN THE HIGH COURT OF DELHI
Bail Application No.1553/2009
Date of decision: 11th August, 2009
Prit Pal Singh ....Applicant
through: Dr. Ashutosh, Adv. with Mr. Jai Singh, Adv.
for petitioner.
VERSUS
Directorate of Revenue Intelligence ....Respondent
through: Mr. Satish Aggarwal, Adv. with Mr. Shirish
Aggarwal, Adv. for the respondent.
CORAM:
HON'BLE MS. JUSTICE GITA MITTAL
1.Whether reporters of local papers may be allowed to
see the Judgment?
2.To be referred to the Reporter or not?
3.Whether the judgment should be reported in the Digest?
GITA MITTAL, J(Oral)
+ Crl.M.A. No.9172/2009
*
Allowed, subject to just exceptions.
Bail Application No.1553/2009
1. By this application, the petitioner who has been summoned to
join investigation by the Directorate of Revenue Intelligence, seeks
grant of anticipatory bail in the case which has been investigated by
it. Mr. Satish Aggarwal, learned counsel representing the Directorate
of Revenue Intelligence, has placed before this court a copy of the
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reply dated 10th August, 2009 which has been filed to this application.
According to the Directorate of Revenue Intelligence, it is conducting
investigation into misdeclared imports effected through ICD
Tuglakabad where various goods were imported duty free in the guise
of books thereby evading substantial amount of custom duty which
was lawfully payable on the imports. It is alleged that during the
period February, 2008 till January, 2009, more than 28 consignments
of worn clothing, electronic and electrical goods valued at
approximately Rs.5.00 crores and involving custom duty evasion of
approximately Rs.2.00 crores were cleared duty free by the
misrepresentation that they were books. These transactions were
undertaken in the name of 15 firms, of which 11 firms have been
found to be fictitious. The investigation has further revealed that even
in the period prior thereto, several consignments have been cleared
adopting the same modus operandi and again certain fictitious firms
were used for effecting duty free imports. It is further stated that the
investigations have revealed that a majority of these fictitious firms
were provided by two brothers namely Prit Pal Singh, the petitioner
herein and Maninder Pal Singh.
2. It is further alleged that these firms were provided against
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financial considerations based on the nature of the consignment.
According to the investigating agency, the fraud has been allegedly
masterminded by a cartel of persons including the present petitioner.
Others who are parties to the cartel have admitted their offences and
have allegedly specifically implicated the petitioner. Statements of
several persons implicating the petitioner and his brother have been
made under Section 108 of the Customs Act. One Shri Amit Sharma
whose role is being investigated, made a statement on 18th February,
2009 wherein he has categorically stated that the petitioner along
with his brother Prit Pal Singh used to provide all the necessary bank
related documents of imports facilitated by him through the fictitious
firms.
3. On the other hand, learned counsel for the petitioner has
contended that it is the case of the investigating agency that certain
benefits have been availed illegally and that no offence against the
present petitioner has been made out. On behalf of the petitioner, it is
submitted that he has been falsely implicated in the case and that the
only reason for arresting him is to extort a signed statement by
coercion and use of third degree methods. It is submitted that the
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applicant has no intention of evading due process and is willing to join
investigation. It is contended that if interim protection is given to the
petitioner, he shall appear before the investigating agency.
4. The record which has been placed before this court would show
that the petitioner has been repeatedly summoned by the
investigating agency since the beginning of February, 2009. It is
stated by Mr. Aggarwal, learned counsel for the respondent that he
has been summoned on almost ten occasions. Despite receipt of
summons, the applicant has been able to avoid any appearance
before the investigating agency. It is urged that it is evident thereby
that there is no sincerity or bona fide in the submissions which are
being made today of willingness to join investigation.
5. So far as the nature of allegations against the applicant are
concerned, there can be no manner of doubt that the investigation
which has been conducted relates to serious matters. Apart from
making of fraudulent imports, there is a conspiracy with regard to
evasion of crores of rupees of custom duty thereby a loss has
occasioned to the public exchequer and the state revenue. Mr.
Aggarwal, learned counsel has also pointed out that there is also a
grave national and security risk inasmuch as the investigating agency
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is looking into all aspects with regard to the nature of the goods which
have been so fraudulently imported. It is pointed out that utilising the
shield of duty free items, articles which could prove to be dangerous
to the national security may have been imported.
6. It is evident that the applicant has been able to obstruct
investigation into the matters which are of serious nature and may
involve interests of national security as well. The investigating agency
urgently requires the assistance of the petitioner to identify other
fictitious firms in whose names the imports have been effected. The
passage of eight months since the petitioner was summoned may
have led to destruction or tampering of valuable and material
evidence.
7. Prima facie it would appear that a concerted effort has been
made to obstruct investigation inasmuch as the applicant has
admittedly received the summons which have been served on him.
The applicant is bound to act in accordance with law and facilitate
investigation.
8. Learned counsel for the petitioner places reliance on the
pronouncement of the Apex Court in AIR 2009 SC 628 Deepak
Bajaj Vs. State of Maharashtra & Anr. to contend that the liberty
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of the petitioner stands on the highest pedestrian and that the right of
the applicant to remain free without incarceration as guaranteed
under Article 221 of the Constitution of India has to be protected. It
needs no elaboration that so far as the arrest of a person is
concerned, the same is legally permissible provided that the same is
in accordance with specific statutory provisions and well settled
principles of law. The case before the Apex Court related to
preventive detention and the applicant had approached the Apex
Court prior to his being arrested. The court was called upon to
consider the legality of the detention order which had been passed
and was of the view that the detention order was not in accordance
with the statutory provisions. In this background it was held that the
petitioner could not be incarcerated as the order of detention was
contrary to law.
The present case does not raise any such issue.
9. There is no such material issue in the instant case. The
petitioner has been called to join investigation which he has
successfully evaded. The submissions made on his behalf when
tested against the petitioner's past conduct, inspire no confidence.
10. The matter not only relates to evasion of custom duty but import
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of other articles utilising the shield of fictitious firms which have been
made available in conspiracy by the petitioner which could prove to be
dangerous to the national security.
11. Prima facie, it cannot be held that the acts attributed to the
petitioner do not fall under the offences detailed under the Customs
Act. The matter is at the stage of investigation.
For all these reasons, I find no merits in this application which is
dismissed.
13. Needless to say, the respondent shall proceed in the matter
in accordance with the well settled principles of law.
It is further made clear that nothing herein contained is an
expression of opinion on the merits of the case.
August 11, 2009 Gita Mittal, J.
aa
