MUMBAI, July 15: Two accused in a case unearthed by the Directorate of Revenue Intelligence (DRI) were recently released on bail after nearly two months in custody. The case relates to the sale of bogus special import licences (SILs) valued at Rs 35.56 crore.It is a rather rare victory for an investigating agency to secure the custody of an accused in an economic offence for more than a month. (In the last case in the city, three accused in the Rs 1,000-crore shoe scam investigated by the city police were took into custody for 78 days).The DRI arrested prime accused Mahendra Vallabhdas Shah and his employee Kamlesh Mehta in connection with the sale of four bogus SILs (66 in all, subsequent investigations revealed) on May 15. Mehta, however, claimed that Shah was using his (Mehta's) name as the proprietor of the fictitious firms which transacted the bogus SILs. Subsequently, one Atul Goradia was arrested on May 25, for allegedly supplying the bogus SILs and also the debit notes of fictitious companies,in the whose names the SILs were purchased. Shah allegedly admitted that he bought the SILs at a lower premium from Goradia and sold them at the (higher) premium prevalent in the market.The SILs were bought by unsuspecting bullion traders and other importers. The licensing authorities confirmed that they had been forged. The total customs duty evaded thereby is yet to be ascertained. Goradia had allegedly evaded arrest till May 25, when he surrendered to the DRI. During questioning he revealed that he supplied the debit notes for the purchase of SILs. It was also revealed that Shah had used the names of Exon International, Unity Impex and Winsome Exports on fake letterheads for the transactions. The DRI was also on the lookout for one person in Delhi who was the alleged source of bogus SILs.While Shah was in custody since May 15, Goradia was arrested on May 25. All four accused were granted bail by the additional metropolitan magistrate, 3rd court, on June 22. The Directorate's lawyers, however,requested for a stay on the order in respect of Shah and Goradia till June 24, which was granted.The DRI petitioned the High Court for the cancellation of bail. Justice Vishnu Sahai, who heard it on June 25, granted rule and made it returnable by July 1. The order of bail in respect of Shah and Goradia was stayed till that time. Later Justice V R Datar heard G E Vahanvati for Mahendra Shah and S R Chitnis for Atul Goradia and R F Lambay for the DRI. The Directorate argued that such an investigation took long. It was also submitted that the Delhi link was yet to be identified. Shah's counsel argued that he was only a broker and had nothing to do with whether they were genuine or not.Justice Datar, on hearing the parties, granted DRI's plea on grounds of seriousness of the allegations and stayed the bail order for another seven days ie till July 10. DRI counsel had assured it would not apply for another extension. Thus, the DRI obtained a remand of 55 days for Shah and 45 days for Goradia.
