CHENAJI NARSINGJI Vs. ADDL COLLR OF CUS PREVENTIVE

JUDGEMENT

(1.) Heard Shri N. H. Gursahani, the learned Sr. counsel for the petitioners, Shri M. K. Patwardhan, the learned senior counsel for the Customs Department and Smt. K. D. Ranadive, the learned Public Prosecutor for the State, in all the five petitions.

(2.) Perused the relevant papers and various affidavits filed by parties.

(3.) For obvious reasons all the five petitions can be disposed of by this common order without causing prejudice to either of the sides because practically identical allegation and identical arguments are advanced and the reasons in respect of all the matters would also be more or less identical. The learned counsel for both the sides are also agreeable to this process being adopted. The petitioners in all the petitions are Bullion Merchants having their jewellery shops located, in different areas of this metropolis. They are doing their business for several years and that has become practically family business from generations. They possess the requisite licences under the Gold Control Act and other licences. During the course of business they have been purchasing gold ornaments from various customers for which they have been issuing vouchers, receipts, etc. as also making requisite payments towards the gold ornaments which on many occasions used to be melted and those entries are made in various registers. In effect, it is alleged that on November 4, 1988 the officers attached to the Gold Control Wing of Customs Department visited all these shops and verified the record and actually took charge of the entire record containing registers, vouchers, etc. This was on the intelligence received and the suspicions generated that these people have been indulging in clandestine activities by purchasing gold from dubious sources and creating camouflage by showing that ornaments have been purchased from various customers and those have been melted and for that purpose according to the Department some bogus vouchers have been prepared and there has been flagrant breach of the rules and the provisions of the Act in the matter of identification of these customers and a practice has been adopted of not making payments through cross cheques so that these payments are shown to have been made but actually siphoned back to themselves and it is apprehended that many of the persons mentioned in the said vouchers may even be non-existent or fictitious. It is on the basis of this apprehension that preliminary examination is in progress and the Department insists to verify all the angles whereafter a conclusion one way or the other would be reached.