GULAB RAI Vs. RAJASTHAN STATE

JUDGEMENT

(1.) THIS is an application under Article 226 of the Constitution.

(2.) THE petitioner Gulab Rai Utu Mal is a Saraf of Jodhpur and carries on business of sale and purchase of bullion in the city. On 27th September, 1958, the police of Jodhpur, headed by the Deputy Superintendent of Police, who is a respondent to the application, raided the petitioner's shop situate in Sarafa Bazar. They seized three books of account of the petitioner being his Sahi Bahi, Kachchi Rokar and Pakki Rokar. This search and recovery appears to have been made in connection with the investigation of some complaint dated 26th September, 1958 purporting to refer to offences under various sections of the Indian Penal Code as also under Section 167 (81) of the Sea Customs Act (VIII of 1878) read with Section 23 of the Foreign Exchange Regulation Act (VII of 1947 ). Nearly a month after the search, i. e. , on 28th October, 1958, the said Deputy Superintendent of Police summoned the petitioner and asked him to produce four bill books of his shop. He was again summoned on 30th October, 1958, and asked to produce the Khata Bahi. It is alleged by the petitioner that even after the seizure of these books of account the police authorities did not make any final report against the petitioner as they should have done during all this period nor did they return his account books in spite of repeated demands, on the contrary they appear to have handed Over the books of account to the Land Customs authorities. On 18th May, 1960, the petitioner received a letter from the Superintendent, Customs Division, Jodhpur, in which it was stated that the said Officer had scrutinised the petitioner's records and since notices on certain persons from whom gold appears to have been purchased by the petitioner were not served, he was asked to furnish correct addresses of those persons. The petitioner challenge, the above action of the authorities as being wholly without jurisdicton and unwarranted in law. He accordingly prays that a writ of mandamus, or any appropriate direction may be issued to the respondents compelling them to return the books of account to the petitioner of which they are in illegal possession and also preventing them from taking any action to force the petitioner to make certain disclosures as required by the Customs authorities.

(3.) AN affidavit in reply has been filed on behalf of the Deputy Superintendent of Police, Jodhpur, as also on behalf of the Customs Officials. It is stated by the police authorities that on receipt of a report that a fairly largo gang of smugglers were engaged in the offence of illegal smuggling of huge quantities of foreign gold and were also responsible for forging valuable securities, the Deputy Superintendent of Police obtained an order from the City Magistrate, Jodhpur, on 26th September, 1958, for investigation ^n regard to offences under the Sea Customs Act, the Foreign Exchange Regulation Act as also under the various sections of the Indian Penal Code. During the investigation the Investigating Officer felt that the Bahis and other books of account found in the shop of the petitioner were of great evidentiary value and if no immediate steps were taken to search the premises and recover the books, all that evidence would be lost. The petitioner's shop was, therefore, searched and the Bahis taken possession of and after the search a copy of the search memo was duly transmitted to the Magistrate on 1st October, 1958. It is further alleged that although no gold was recovered from the shop of the petitioner, the Bahis contained entries which led the authorities to believe that Sold was received by the petitioner through clandestine sources. The bill books and the Khata Bahi were, therefore, similarly seized. The stand taken by the police authorities is that there was a general conspiracy to smuggle gold into India in which a large number of persons were involved. It appears that the Bahi entries, according to them, had been fabricated in order to conceal the crime of smuggling and in order to test the correctness of the entries a very large number of persons had to be interrogated when it was discovered that many of the names mentioned therein were fictitious. Since it also transpired that the alleged offences were against the Customs law, which could be the subject-matter of departmental proceedings under the Customs Act or form the basis of a complaint by the Customs authorities, the matter was referred to those authorities. The Customs authorities on their part issued notices to the various parties concerned and had even taken steps against some of them. According to the respondents a large number of persons are still to be investigated and the police authorities are, therefore, awaiting he result of the enquiry by the Customs Officials before taking any further action hi the matter and the delay is natural and inevitable in a case of such magnitude. The account books are at present in the hands of the Customs Officials who are taking appropriate steps for investigation on the basis of the entries made in those books.