HARSHAD S MEHTA Vs. UNION OF INDIA

JUDGEMENT

(1.) This is an application for anticipatory bail under S. 438 of the Code of Criminal Procedure, 1973 - hereinafter referred to as the "Code".

(2.) On 31st May 1992, the premises said to be those of a person named Niranjan Shah were searched by officers of the Income-tax Department. In the course of this search, the officers came across a large number of documents showing questionable deals by various persons. Some of the documents evidenced violations under the Foreign Exchange Regulation Act, 1973 - hereinafter referred to as the "FERA". Niranjan Shah made himself scarce immediately after the search of his premises which had taken place on 31st May 1992. The petitioner came to be arrested on 4-6-1992 by the CBI in what is now commonly referred to as the scam of the century. Since that time he is in custody and the custody has been continued from time to time. The last occasion when the petitioner was produced before the Special Court was on 17-7-1992 and the Judge presiding over the said Court is said to have given an indication that the petitioner's detention could not be continued idefinitely, for indefinite detention would amount to punishment even before the offences allegedly committed by the petitioner had been established. Petitioner has three brothers names Ashwin, Sudhir and Hitesh. The Financial Express, an organ of the Express Group of Newspapers, on July 2, 1992 came out with a write-up captioned

(3.) It is not clear whether the petitioner while in custody has been questioned or not in regard to violations under FERA. However, certain extracts from the proceedings pending against him before the Special Court have been available. These give the indication that some questioning of the petitioner vis-a-vis the FERA violations has taken place. The remand application moved on 3-7-1992 speaks of the investigation having made progress in tracking foreign accounts of the petitioner and his relations. There is also a reference to the identification of petitioner's associates and accomplices abroad. In the order passed by the Special Court on 3-7-1992 there is a reference to the investigation unearthing the possibility of the existence of foreign accounts. It is said that the continued interrogation and investigation has led to traces of foreign accounts.