SENIOR INTELLIGENCE OFFICER, HYD. Vs. GURRAM DASARATHA REDDY

JUDGEMENT

(1.) This appeal is filed by DRI (Directorate of Revenue Intelligence), challenging the acquittal recorded by the Metropolitan Sessions Judge, Hyderabad, in S.C.No.350/2002, vide Judgment dt.30/6/2005, for the offences under Ss. 22, 25, 27-A and 29 of NDPS Act against A1; 22, 25-A, 27-A and 29 of NDPS Act against A2; 22, 27-A, 29 of NDPS Act against A3; 22, 29 of NDPS Act against A4; 22, 25 and 29 of NDPS Act against A5; 22, 25 and 29 of NDPS Act against A6; 22, 25 and 29 of NDPS Act against A7; 22 of NDPS Act against A8; 22 and 25 of NDPS Act against A9; 22 of NDPS Act against A10; 22 of NDPS Act against A11; 25-A and 31 of NDPS Act against A12; 25-A of NDPS Act against A13 to A16.

(2.) The case of the prosecution is that specific intelligence was gathered which indicated that Methaqualone, a Psychotropic Substance specified in the schedule to Narcotic Drugs and Psychotropic Substances Act, 1985 (for short 'NDPS Act') was being manufactured at M/s.Neepa Chem Laboratories Private Limited, located at Survey No.441, Brahmanpally Road, Bibinagar, Nalgonda District and further being converted into tablets at H.No.1-1, Masanpally Village, Basheerabad Mandal, Ranga Redddy District. The gist of intelligence was recorded by LW.1-S.Yanadi Reddy, Senior Intelligence Officer and in compliance with Sec. 42 of the NDPS Act, LW.1-S.Yanadi Reddy reported the gist of intelligence to his immediate official superior LW.2- M.Subramanyam, Senior Deputy Director vide letter dtd. 9/5/2002. On the basis of search authorizations issued by LW.1- S.Yadagiri Reddy, the officer of Directorate of Revenue Intelligence along with Central Excise Officer conducted search at the above mentioned premises on 10/5/2002 in the presence of independent witnesses and the proceedings were drawn under the respective panchanamas dtd. 10/5/2002.

(3.) The search party headed by LW.3-A.V.S.Mallikharjuna Rao, Intelligence Officer conducted the search of Plant-II (New Shed) of M/s.Neepa Chem Laboratories Private Limited, Survey No.441, Brahmanpally Road, Bibinagar, Nalgonda District, in the presence of two independent witnesses LW.4-P.Ramesh and LW.5- I.Swamanna. At that time A8 was present and later A1, A2 and A3 came to the premises. The process of operations were in progress. During the search, off-white coloured powder packed in 10 polythene bags on the machine floor and certain quantity of off white coloured powder in the drying-chamber, besides other chemicals, reaction mass and in-process residue were found. The officers conducted tests on the off-white coloured powder with the help of a field-test-kit brought by them and the same tested positive for the presence of Methaqualone, a psychotropic substance specified in the scheduled to the NDPS Act. The officers also searched a Tata Safari vehicle bearing No.AP 9AC 9145 parked at the said premises and recovered a passport bearing No.72723 issued in the name of A2 and a polythene cover containing off- white coloured powder, which also tested positive for the presence of Methaqualone. Before conducting the personal search of A1, A2, A3 and A8, they were asked whether they would like to be searched before a Magistrate or Gazetted Officer. They informed that they had no objection to be searched before any Officer. Thereafter, the personal search of the above accused persons was conducted before LW.6-Shaik Khan Saheb, Superintendent of Central Excise who is a Gazetted officer. Nothing was recovered from the personal search of A1. The incriminating documents recovered from A2 include, among others, a slip showing requirement of bags which later was identified as in the hand-writing of A1, cheque No.862637, dtd. 31/5/2002 drawn in favour of M/s.Sain Chem Pharma Private Limited for an amount of Rs.41,21,200.00 signed by one Prashant, which later admitted to be in the hand writing of A1 and a digital diary containing, among others, the telephone numbers of A1, A3, A4, A7, A8, A9, A10 and A11. The incriminating documents recovered from A3 include, among others, a slip showing details of raw materials and a slip showing time cycle of manufacturing process of Methaqualone. A small sachet containing powder and a polythene cover containing dull white powder were also recovered from A3. The incriminating documents recovered from A8 include, among others, a diary in which details of raw material were written and a paper slip containing manufacturing process of Methaqualone, which was identified later as in the hand-writing of A3. The officers have drawn representative samples, in duplicate from the said powder, weighed and placed them in heat sealed polythene covers, which were in turn placed in paper envelopes and sealed with DRI seal. The powder recovered from the TATA Safari vehicle was also weighed and placed in a heat sealed polythene cover which was in turn placed in a paper envelope and sealed with DRI seal. All the paper envelopes were duly marked. Representative samples, in duplicate, were also drawn from the chemicals, reaction mass and in-process residue, were packed and sealed. The off-white coloured powder recovered from the premises and from the Tata Safari vehicle was packed, weighed and sealed with DRI seal. The officers have also inventorised the plant and machinery used for the manufacture of Methaqualone. Then the officers seized the powder weighing 686.811 kgs., chemicals, reaction mass, in-process residue, plant and machinery, equipment and Tata Safari vehicle bearing No.AP 9AC 9145 on reasonable belief that the same are liable to confiscation under the Act.