The court held that the provisions of the NDPS Act apply alongside the Drugs and Cosmetics Act, and bail under Section 37 of the NDPS Act requires clear grounds for believing the accused is not guilty, which were not met.

ORDER :

1. Since these Criminal Petitions are filed, under Section 437 & 439 of Cr.P.C. seeking regular bail, by different accused i.e. Crl. Pet. No. 9252 of 2023 (filed by A2), Crl. Pet. No. 9302 of 2023 (filed by A.1) and Crl. Pet. No. 9314 of 2024 (filed by A3) in same crime viz. Cr. No. 48/1/6/2023/NCB/SUB-ZONE/HYD, they are being taken up together for disposal by way of this Common Order.

2. The above crime was registered against the Petitioner and others for the offence punishable under Sections 8(c) read with 22(c), 28 & 29 of NDPS Act.

3. The Prosecution’s case, in brief, is that on 05.06.2023, the Intelligence Officer of the Union of India’s NCB received information regarding the manufacturing of a large quantity of Alprazolam in the production block of CPR Laboratories Pvt. Ltd. in Atchuthapuram APSEZ, Rambilli Mandal. Acting on this information, the Intelligence Officer, along with mediators, found A.1 to A.3 at the production block, where they were packing materials in drums. Subsequently, 119.5 kgs of light yellow powder, suspected to be Alprazolam, were seized from the drums, along with equipment, in the presence of the laboratory owner, under the NDPS Act. A.1 to A.3 confessed to their involvement in the manufacturing, possession, and attempted transportation of the substance.

4. In response, the learned counsel for the Petitioners argued their innocence, stating that they have been falsely accused. A.1 has a background as a chemist and has held positions such as shift-in-charge and production manager in pharmaceutical companies. A.2 holds a PhD in Chemistry and has worked as a senior scientist in various laboratories. A.3, on the other hand, has been a petty worker, previously employed in a cement factory and seeds shop until 2020. The Petitioners were arrested while working in a laboratory run by A.4, and they have been detained in Central Jail, Visakhapatnam, since 07.06.2023.

5. Learned counsel for the Petitioners further submitted that in the instant case, Alprazolam is a prescription drug which figures at Entry No. 15 in Schedule ‘H’ of the Drugs and Cosmetics Act 1940 (for short ‘D’ & ‘C’ Act’). Though it is a psychotropic substance by Entry No. 30 in the Schedule to the NDPS Act, it is not a psychotropic substance mentioned in Schedule I of the Rules appended to the said Act; when a psychotropic substance does not find mentioned in the Schedule I to the Rules, the prohibition concerning its possession contained in Rule 64 does not apply and since the powder involved in the present case find mention in Schedule ‘H’ of the D&C Act, as such, the Alprazolam will be covered under the D&C Act and not under the NDPS Act. Citing the case of State of Uttaranchal vs. Rajesh Kumar Gupta, 2006 (3) JCC (Narcotics) 178 of the Hon’ble Apex Court, the counsel asserted that where the provisions of the NDPS Act do not prima facie apply, the right to bail cannot be denied unless a clear case for the application of Section 37 of the NDPS Act is established. The Petitioners, who have clear antecedents and are permanent residents of Hyderabad with their families, have no intention of absconding. Moreover, since the investigation is nearly complete and awaiting the filing of the charge sheet, the Petitioners are willing to cooperate.

6. On the other hand, Sri Suresh Kumar Routhu, learned Special Public Prosecutor for NCB, representing the Respondent-State, filed a counter and argued that the contraband was seized from the accused persons, and all relevant provisions of the NDPS Act were adhered to. The accused voluntarily admitted to manufacturing a substantial quantity of Alprazolam, which exceeds the commercial quantity stipulated under the NDPS Act. Additionally, they confessed to previous involvement in producing Alprazolam using the same modus operandi. Phone call transactions between the accused were also noted prior to their arrest, indicating their involvement in illegal activities. Given their criminal history with Alprazol