ARVIVA INDUSTRIES (INDIA) LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) The petition raises the following questions :-

(2.) A few facts : The petitioner company is a merchant exporter. It purchased finished fabrics and exported the same. Under the Import-Export Policy 1992-97 an incentive was given for exports. Under the DEEC Scheme, an exporter was allowed to import materials specified in the Advance License without payment of duty. On completing the export obligation, the licenses were made transferable and could be sold in the market after the licensing authorities had endorsed transferability on the same.

(3.) On 20th August 1995, Shri Raju Amarnani, a Director of the petitioner was arrested and remanded to judicial custody on the ground that the petitioners had evaded customs duty. The banks accounts were frozen and the accounts seized. According to the petitioners, while in jail, the said Raju Amarnani was forcibly coerced to issue a cheque for Rs. 20 lakhs towards the alleged evasion of customs duty. The petitioners filed Writ Petition No. 1740 of 1995 and 1895/1995 against the freezing and seizure of the accounts. The respondents filed an affidavit alleging that the petitioners had evaded customs duty to the tune of Rs. 1.10 crores. On 13-10-1995, this Court directed the petitioners to give a bank guarantee of Rs. 80 lakhs and lifted the seizure and freezing of the petitioners' bank accounts.