Bombay Court Grants Bail To Person Accused of Rs. 42 Cr. Walnut Customs Duty Evasion After 17 Days of Arrest

The bench of S. K. Fokmare (Addl. Chief Judicial Magistrate) has observed that the allegations are regarding undervaluation of goods. So far as the issue regarding undervaluation of goods is concerned it will take time to determine the same. It will take time to complete the investigation and to file the complaint. The offences in question are triable by this court. No criminal antecedents found against the applicant. For overseas inquiry or for stakeholders interrogations the accused/applicant cannot be kept behind bar for an indefinite period. Moreover, the bank accounts of the accused/applicant seem to be provisionally attached by DRI. Thus the physical presence of the accused/applicant does not seem to be necessary for conducting investigation regarding money laundering or the hawala payments.

The accused/applicant has evaded basic customs duty of more than 42 crores by importing more than 3630 MTs of undervalued inshell walnuts through his import firms M/s. Essar Impex LLP and M/s. Vasudev Khachermal Poonawala. The applicant was arrested and since then he is in judicial custody.

The applicant is permanent resident of Nerul, Navi Mumbai. He is the sole proprietor of M/s Vasudev Khachermal Poonawala and partner in M/s. Essar Impex LLP, a registered partnership firm. Both firms are engaged in the import of perishable goods, specifically shelled dry fruits and nuts including walnuts and other food items. He is a respectable individual engaged in business for several years. He has been arrested on false ground. The allegations about manipulation of invoices and failure of submission of genuine invoices are baseless and false.

Dr. Sujay Kantawala, the counsel for the Applicant contended that the documentary evidence including electronic record has already been seized. Likewise the goods upon which the alleged duty has been evaded has also been seized. It is averred that the real dispute is regarding valuation of goods. For ascertaining the valuation of the goods it is for DRI to initiate appropriate proceedings against the applicant. It will take time to complete. Since the last 15 days the applicant has been in jail. The applicant has cooperated with the investigation. Now there is no necessity to keep the applicant behind bars. The offence is not punishable with death. The offence is triable by this court. Hence the applicant prayed for allowing this application.

The DRI has resisted the application for grant of bail. It has been contended that the applicant is involved in a very serious economic offence which adversely affects the economy of the country. The applicant has knowingly and willfully undervalued the imported goods by way of submitting manipulated invoices instead of furnishing the actual invoices issued by Chile based overseas suppliers. It has been alleged that the accused by adopting this tactics had evaded basic customs duty of more than 42 crores on import of more than 3630 MTs of undervalued inshell walnuts through his import firms.

The court noted that prima facie from the face of record it seems that the applicant is indulged in activity of evasion of tax. It has been alleged that, by submitting manipulated invoices the applicant/accused had evaded basic customs duty of more than Rs. 42 crores on import of more than 3630 MTs of undervalued inshell walnuts through his import firms. Here it is not in dispute that the allegations levelled against the applicant are very serious. The allegations are about the commission of serious economic offences.

However, the court at the same time stated that it is not in dispute that, since his arrest of 19.06.2025 the applicant is in jail. Since last 17 days the DRI has got sufficient opportunity of interrogation with the accused. Further it is not in dispute that during investigation the DRI has seized 7475 kgs goods from the stock of M/s Vasudev Khachermal Poonawala. The goods are seized for initiation of confiscation proceedings. Likewise it is not in dispute that during investigation the DRI has collected all documents including electronic records required for investigation.

The court directed that the accused Akash Ravish Agarwal be released on bail on his execution P. R. Bond of Rs. 2,00,000 with one or more sureties in like amount.

The court has imposed various conditions.

Firstly, the court directed to remain present as and when called by respondent in connection with investigation of this offence under written intimation, till further investigation is completed or till further order.

Secondly, the accused shall take prior permission of the court for travelling abroad.

Thirdly, the accused shall furnish his residential address with proof, E-mail and telephone/mobile number to the Court and to the Department. He shall not change said addresses, telephone/mobile number without prior intimation in writing to the Court and concern Department.

Lastly, the accused shall furnish address and mobile number of two of his nearest relatives with their consent to the Court and department along with their address proof for contacting them if he failed to appear during further investigation before respondent and during trial of the case.

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