Mumbai, Maharashtra – A Special Court for Narcotic Drugs and Psychotropic Substances (NDPS) cases in Greater Mumbai has granted conditional bail to Narayan Singh Kharayat, a 61-year-old businessman and partner in a customs clearing agency, who was arrested following the seizure of 7.857 kg of Ganja/Marijuana from an import consignment.
Special Judge R.R. Bhagwat (C.R.44) issued the order on December 29, 2023, in NDPS Bail Application No. 1046 of 2023. Kharayat was arrested on November 25, 2023, under FIR No. SIIB(I)/Gen – 05/2023-24/ACC, registered with the Special Investigation and Intelligence Branch (SIIB), Import, ACC, Mumbai Customs Zone III, for offenses punishable under sections 8(c) read with 23(b) of the NDPS Act, 1985.
Prosecution’s Case: Irregularities in Customs Clearance
The prosecution, represented by SPP Mrs. Vibhavari Pathak, alleged that during a routine examination on November 17/18, 2023, an import consignment under Bill of Entry No. 8795836, imported by “Ajay Malik” (IEC-HKGPM3853J) through M/s. Lucky Clearing Agency (where Kharayat is a partner), revealed 7.857 kg of Ganja/Marijuana, which was seized under the NDPS Act.
The prosecution stated that on November 18, 2023, statements of Kharayat, Mr. Madhav H. Kharayat, and Mr. Subhash Tambe were recorded under Section 67 of the NDPS Act. Searches were also conducted at M/s. Lucky Clearing Agency’s office and the importer’s delivery address. Subsequent inquiry with Delhi Customs on December 1, 2023, revealed that the addresses of the three importers were not associated with them and were occupied by other persons.
On November 25, 2023, Kharayat allegedly made a statement admitting to several irregularities:
- He filed the Bill of Entry without an authority letter from the importer.
- He failed to perform KYC verification of the importer’s documents.
- He personally paid customs duty and other charges from M/s. Lucky Clearing Agency’s bank account.
- He was aware that the address provided by “Mr. Sourav Raha” was non-existent.
- He uploaded a wrong Textile Committee Report through his staff for the said bill.
- He failed to verify the client’s genuineness and knew the invoice and IEC addresses were different.
- He instructed his staff to deliver the goods to an address different from the one mentioned in the invoice.Based on these admissions, Kharayat was arrested.
Applicant’s Defense: Victim of Fraud and Lack of Knowledge
Mr. Inderpal B. Singh, the learned advocate for Kharayat, argued that his client was an innocent victim of a larger conspiracy orchestrated by the importer. He claimed that initially, one Mr. Sourav Raha of Smart Moves Overseas had booked a T-shirt consignment and appointed the applicant for customs clearing. Kharayat had received payment for duties from the importer and paid the customs duty from his agency’s account. He asserted that the delivery for the initial consignment was made to the importer’s representative at Kalbadevi with acknowledgment.
Mr. Singh contended that the Airway Bill was changed by M/s. Bhagwat Group (a freight forwarder) from Smart Moves to M/s. Malik Enterprises upon the importer’s instructions, without Kharayat’s consent or knowledge. He argued that Kharayat, as a service provider, was not responsible for KYC documents or verifying the genuineness of client details, blaming the importer for fabricating documents and obtaining bogus PAN/IEC codes. He maintained that no incriminating items were seized from Kharayat’s office or residence, Section 35 of the NDPS Act (presumption of culpable mental state) was not attracted, and Kharayat had no knowledge of the second, illegal consignment.
Mr. Singh also highlighted that Kharayat has no criminal antecedents, a clean record of 27 years in the business, and has been cooperating with the investigating agency. He further argued that the seized contraband (7.857 kg Ganja) falls under an intermediate quantity, thus the stringent bar under Section 37 of the NDPS Act is not attracted. He requested bail, emphasizing that Kharayat is a permanent resident of Mumbai and poses no flight risk.
Court’s Analysis and Decision to Grant Bail
Special Judge R.R. Bhagwat considered the rival submissions and the material on record. The court first confirmed that the 7857 grams of Ganja seized falls under the intermediate quantity, and therefore, the strict bar to bail under Section 37 of the NDPS Act is indeed not attracted. This was a key factor in the decision.
While acknowledging the prosecution’s allegations about Kharayat’s role in paying customs duty from his account and the irregularities in document verification, the court also noted that Kharayat is a businessman and a local resident of Mumbai with no prior criminal antecedents.
The court reasoned that under these circumstances, Kharayat’s presence for investigation and trial could be secured by imposing stringent conditions.
Bail Granted with Conditions
The court allowed Bail Application No. 1046/2023, ordering Narayan Singh Kharayat’s release on bail with the following terms:
- Bail Bond: He must execute a Personal Recognizance (P.R.) Bond of ₹50,000/- and provide one or more sureties of the like amount.
- Reporting to SIIB: He must attend the office of SIIB, Import, ACC, Mumbai Customs Zone III, every Monday between 11:00 a.m. to 02:00 p.m. until the charge-sheet is filed.
- Contact Information: He and his sureties must provide their mobile numbers and correct residential addresses, along with names and mobile numbers of two relatives.
- Identity and Residence Proof: He must produce proof of his identity and residence when executing the bail bond.
- No Tampering: He shall not tamper with prosecution witnesses/evidence in any manner and must cooperate in the early disposal of the trial.
- No Similar Offenses: He shall not commit similar offenses while on bail.
- Provisional Cash Bail: Upon request by his advocate, he shall be released on provisional cash bail of ₹50,000/- for the next four weeks from the date of the order, allowing time to arrange for the sureties.
The application stands disposed of accordingly.