KAILASHPATI KEDIA Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) THE petitioner Kailashpati Kedia s/o Mahabir prasad Kedia, the Chairman of the business group known as House of Kedia has filed this petition under Article 227 of the Constitution of India read with section 482 of the code of Criminal Procedure for quashing and setting aside the first information report registered vide Crime No. 53/96 on dated 23-2-1996 by the Inspector, Flying Squad no. I, State Excise Department, Nagpur under sections 65 (a), (e), 66 (1) (b), 81, 83, 108 of the Bombay Prohibition Act, hereinafter for short the Act and under Rule 3 (1) (b) (ii)of the Maharashtra Through Transport Rules 1952.

(2.) SHORTLY stated, the facts are as under :- The petitioner company, Kedia Castle Dellon Industries limited, runs a unit in Kumhari, district Durg (Madhya pradesh) for manufacture of Indian made Foreign Liquor, for short IMFL , the registered office of which is at 6-B, Express Towers, 42-A, Shakspere Sarani, Calcutta. According to the petitioner, he is the Chairman of House of kedia which runs various units in India at different places, one of which is at Kumhari, district Durg (M. P. ). The 3250 boxes of IMFL were being transported by Satpal Roadways in a consignment consisting of 3 trucks from Kumhari to Port blair via Nagpur, Solapur, Bangalore and Madras. The accused no. 1 Acchelal Mazi who is a Peon, working with the Company at Kumhari has made application on 31-1-1996 to the superintendent of Excise at Nagpur for permission to stock the consignment at Nagpur, as the time as per passes had expired and he wanted to revalidate the passes for which permission was granted by the Excise Authorities. The excise authorities had noticed that there was contravention of Rule 22 of the Madhya Pradesh Indian Made Foreign Liquor Rules made under the Madhya Pradesh Excise Act, 1950, inasmuch as the consignment was not carrying Part II of Export Passes in form FL 21, and therefore, the Excise Authorities has seized the consignment. According to the prosecution, the excise officers received secret information that this IMFL being transported in these consignments was to be sold at Solapur in black. In the meanwhile, the excise department officers at Nagpur contacted the excise officers at Port Blair who intimated that fake documents regarding import are export of imfl by Kumhari company to G. Mohandas at Port Blair are created and he sent the relevant document to the officers at nagpur. On 23-2-1996, first information report is registered vide Crime No. 53/1996 at 22. 30 hours in State Excise office, Flying Squad, Nagpur Division, Nagpur. Accused No. 1 acchelal was arrested on 23-2-1996 B. M. Puwaiyye, the deputy Manager of Kumhari Company was arrested on the same day. Subsequently, Dr. Shrivastava, one of the Directors of the Company, and G. Mohandas from Port Blair were arrested and other four officers of the Company did surrender before the Chief Judicial Magistrate, Nagpur in this crime and they were released on bail. It is also alleged that the address of the petitioner was sought from Kumhari Company, but it was not made available. According to the prosecution, the telegrammes were sent on the available address of the petitioner at Indore, but still petitioner did not reply, nor did make himself available for interrogation. The petitioner had applied for anticipatory bail and the additional Sessions Judge, Nagpur had granted anticipatory bail to the petitioner on condition that he would report to the Investigating Officer on 27-6-1996.

(3.) THE petitioner in this petition has stated that he is the Chairman of a leading business group known as the House of Kedia and the House of Kedia controls and runs six distilleries spread over various States including the State of Madhya Pradesh i. e. Kumhari, district Durg and the House of Kedia also controls various power plant projects, cement plant projects, beer plant and many more projects in the state of Madhya Pradesh, Rajasthan, Maharashtra and Madras. Kedia Castle Dellon Industries Limited is a Public Limited company registered under the Companies Act, 1956. Kedia castle Dellon Industries Limited, Kumhari, district Durg is under the control of House of Kedia and the liquor is manufactured and exported as per the various licences prescribed under the Rules and provisions of Madhya Pradesh excise Act, 1950 and this distillery is controlled and regulated under the Rules by Excise Officers posted at the distillery by the State Government of Madhya Pradesh. On receipt of copy of the import permit/part of the import permit by the Commissioner of State Excise, Gwalior, it was despatched to the Distillery Officer and the Distillery officer issued export pass for destination where the goods were to be despatched. The said papers of export passes, relevant permits and true copies of the invoices and batch number and Strength Certificate were carried along with the consignment. It is further stated that before the consignment reaches the entry point at the State of karnataka, the goods have to be detained within the State of maharashtra, and enter Karnataka only when the passes are issued by the Karnataka for through traffic. It is averred in para 5 of the petition that one G. Mohandas who is the licensee at Port Blair, Andamans placed various orders to the company s distillery at Kumhari for despatch of various quantities of IMFL. Import Permits were bearing Nos. 7/143/ls/95-96/4299, 7/143/ls/95-96/4300, 7/143/ls/95-96/4301, 7/143/ls/95-96/4302 and 7/143/ls/95-96/4303 all dated 14-9-1995 purportedly issued by Deputy Commissioner of port Blair. The said quantity of IMFL was allowed to unload at Nagpur in the godown of M/s Satpal Roadlines and Company, wadi which was done with the specific permission of the superintendent of State Excise, Nagpur. The import permits were given back along with other papers by the State Excise authorities, Nagpur to Acchelal accused No. 1 who was accompanying the consignment after obtaining xerox copies of the concerned papers including the import permits. As the import permit has to be revalidated from Port Blair by the licensee, the said permits were despatched to Shri B. M. Poovaiah, Deputy General Manager of the Company at bangalore, who sent the said permits to the licensee G. Mohandas by getting them revalidated and the said Shri poovaiah-accused No. 2 sent the said permits back to Kumhari after revalidation.