Sessions Court Sets Aside Conviction Of Chartered Accountant In 38 Years Old Case Over Smuggling Of Foreign Currency Worth ₹46 Lakh

A sessions court in Mumbai recently set aside the conviction of a chartered accountant from Ahmedabad in a 38-year-old case for allegedly attempting to smuggle US dollars’ worth Rs. 46 lakhs.

Additional Sessions Judge Dr AA Joglekar set aside Ashutosh Nanavaty’s conviction ordered by the Metropolitan Magistrates Court in 2014. He was sentenced to six years imprisonment and fined Rs. 2.5 lakhs.

The court held there were several inconsistencies in the prosecution’s case and lack of evidence.

“I have inferred that the prosecution has failed to prove the case beyond reasonable doubt. Therefore, the accused is required to be acquitted from such charge under Section 13(2) of the Foreign Exchange Regulation Act and thereby committed an offence under Section 135(1)(a)(ii) of the Customs Act.”

Ashutosh Nanavaty and his co-accused Chandrakant Amin were arrested by the Customs in March 1985 at Mumbai airport, from where they were suppose to transport money to USA via Hong Kong.

A mill owner from Ahmedabad, Mrugesh Harivallabhdas, had also been arrested after his name cropped up during investigation.

While Amin and Harivallabhdas pleaded guilty at the time of the crime and underwent prison terms of six months each, Nanavaty had claimed innocence and the trial was conducted against him alone.

Amin deposed as a prosecution witness in the trial.

In the order, the sessions judge observed that the Magistrate failed to consider Nanavaty retracted his statement and further reiterated that his co-accused couldn’t have deposed as a prosecution witness without a court order. The court further held there was no evidence to suggest Nanavaty was aware about foreign currency being packed in his suitcase by Amin.

“It is translucently clear that, the accused No.3 (Nanavaty) had no knowledge with regard to the foreign exchange being kept under the suitcase which was duly number coded by the accused No.2, who has admittedly stated for the same.”

So also, panchas are not examined by the prosecution and this speaks in quantum, the court observed further noting that the police already knew by then notes were going to be found in the bag.

The Court also reiterated that a co-accused cannot be converted into a prosecution witness without taking permission from the trial court. Accordingly it discarded evidence by the co-accused.

“The prosecution has not sought for any such permission for examining the accused No.2 (Amin) as prosecution witness from the Ld. Trial Court. This particular aspect goes to the route of the matter and therefore, the testimonial evidence laid by Amin will have no bearing upon the proceedings.”

Moreover, the Court observed that since the proceedings under FERA which were initiated on identical facts, had already been dropped against the Appellant, it may not be proper to proceed against him under the Customs Act when there is no evidence found against him.

“It is pertinent that, the prosecution has not rebutted for congruent FERA Proceedings to have commenced and concluded in the favour of the accused No.3 and the said proceedings were dealt upon the same premise and facts as stated in the complaint. Thus, the same amounts to jeopardizing the accused No.3, more especially when the accused No.3 is exonerated all such charges by the FERA Appellate Authority.”

Case Title - Ashutosh Prafulchandra Nanavaty vs The State of Maharashtra

Appearances - Adv. Adithya Iyer a/w Adv. Advait Helekar for Nanavaty

AAP Abhijeet Gondwal

SPP Natrajan

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