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2025 Supreme(AP) 775

IN THE HIGH COURT OF ANDHRA PRADESHAT AMARAVATI
Y. LAKSHMANARAO, J.
 
Union Of India, Narcotics Control Bureau, Hyderabad SUB-ZONE – Appellant 
Versus
Kaluvai Manohar Reddy, S/o Venkata Ramana Reddy – Respondent 
CRIMINAL PETITION NO: 6490 of 2024
Decided on : 03-07-2025

Advocates:
Advocate Appeared:
For the Appellant : Suresh Kumar Routhu (SPL PP for NCB)
For the Respondent: D. Purnachandra Reddy

The court reaffirmed that under the NDPS Act, bail should only be granted if satisfactory grounds exist for believing the accused is not guilty and unlikely to reoffend, emphasizing strict adherence to Section 37 parameters.

Headnote:(A) Code of Criminal Procedure, 1973 - Section 439 - Narcotic Drugs and Psychotropic Substances Act, 1985 - Sections 8(c), 22(c), 27A, 28 and 29 - Cancellation of bail to accused for serious narcotics offenses - The court emphasized stringent considerations for bail in NDPS Act cases, affirming that satisfaction regarding absence of guilt and likelihood of reoffending are mandatory per Section 37. (Paras 1-20)

(B) Bail - Principle of cancellation - The court noted that an order of bail should not be cancelled lightly without cogent grounds. (Paras 10-16)

Facts of the case:
Criminal petition initiated by Narcotics Control Bureau to reverse bail granted to accused involved in manufacturing and possession of 119.5 kg of narcotic drugs. The respondent had earlier been granted bail without adequate considerations of the stringent bail regulations under the NDPS Act.

Findings of Court:
The learned Special Sessions Judge's order allowing bail lacked thorough consideration of statutory requirements; therefore, the court suggested that a proper application for bail cancellation be made before the Special Sessions Judge.

Issues: Whether the bail granted was consistent with stringent conditions of the NDPS Act.

Ratio Decidendi: The difficulty associated with bail under the NDPS Act was reiterated, noting the necessity for courts to thoroughly examine evidence and circumstances before allowing bail.

Result: Petition disposed of, advising the State to seek cancellation of bail before the Special Sessions Judge.

Table of Content
1. factual background of the case. (Para 1 , 2)
2. arguments presented by the parties. (Para 3 , 4 , 5 , 6)
3. ratio decidendi regarding bail principles. (Para 7 , 8)
4. court's observations on bail considerations. (Para 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20)
5. conclusion on handling the application. (Para 21)

ORDER:

Y. LAKSHMANARAO, J.

1. This Criminal Petition has been filed by the Investigating Officer of the Narcotics Control Bureau (NCB), Hyderabad under Section 439 of the Code of Criminal Procedure, 1973 (for short, ‘Cr.P.C.’)/ Section 483 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (for short, ‘ BNSS ’), seeking, to set aside the order dated 20.06.2024 by cancelling bail granted to respondent/Accused No.1 in NCBF.No.48/1/6/2023/NCB/SUB-ZONE/ HYD, now registered as NDPS SC No.7/2024, passed by the learned Metropolitan Sessions Judge – cum – I Additional District and Sessions Judge (Special Judge for the Trial of Offences under the NDPS Act), Visakhapatnam, in Crl.M.P.No.483 of 2024, and to pass appropriate orders.

2. The case advanced by the prosecution is this:

On 05.06.2023, the petitioner/complainant received specific information that four persons viz., namely: i) B. Nageswara Rao, ii) E. Yadaiah Goud, iii) G. Nagaraju, and iv) K. Manohar Reddy, were manufacturing a large quantity of Alprazolam in the production block of CPR Laboratories Pvt. Ltd., located at Plot No. 23-1 (Part-1), De-notified Area, Atchutapuram APSEZ, Lalamkoduru (V), Rambilli Mandal, Anakapalli-531011. Further information indicated that they were nearing completion the manufacturing process. This information was reduced in writing and submitted to Superintendent, NCB Hyderabad Sub-Zone. Following his instructions, the petitioner/complainant engaged two independent witnesses through the Tahsildar of Rambilli Mandal and proceeded to the above-mentioned facility. They intercepted three individuals viz., B. Nageswara Rao, Erukula Yadaiah Goud, and Gonepally Nagaraju in the production block. These individuals were observed packing material into drums. During the search, 119.5 kg of light-yellow powder, suspected to be Alprazolam, was recovered and seized in accordance with the Narcotic Drugs and Psychotropic Substances Act, 1985 (for short, ‘NDPS Act’), in the presence of the owner of CPR Laboratories Pvt. Ltd. Additionally, equipment used in the manufacture of the seized substance was also seized.

b. Subsequently, the three suspects viz., B. Nageswara Rao (A-1), Erukala Yadaiah Goud @ Giri (A-2), and Gonepelly Nagaraju (A-3) were examined under Section 67 of ‘the NDPS Act.’ Each gave statements admitting their involvement in the manufacture, possession, and attempt to transport the light-yellow powder (Alprazolam), all with the motive of earning easy money.

c. Based on their admissions, the seized materials, and other incriminating documents, the accused were arrested on 06.06.2023 at 17:00 hrs, 17:15 hrs, and 17:30 hrs respectively, for contraventions of Sections 8 (c) read with Section 22 (c), 28, and 29 of ‘the NDPS Act’. They were produced before the Jurisdictional Magistrate at Yellamanchili on 07.06.2023, remanded to judicial custody, and lodged in Visakhapatnam Central Jail.

d. As part of the investigation, based on a voluntary disclosure by B. Nageswara Rao (A-1), it was revealed that K. Manohar Reddy, co-accused in another NDPS case registered at RC Puram Police Station, was the financier of the operation, having contributed approximately Rupees Fifty Lakhs for manufacturing. Consequently, on 23.06.2023, summons was issued to K. Manohar Reddy under Section 67 of ‘the NDPS Act’. Upon examination, he admitted to financing the manufacture and attempted transportation of the light-yellow powder (Alprazolam), as seized under the Panchnama dated 05/06.06.2023. He also admitted to various attempts to evade law enforcement and acknowledged his motive of easy money. Accordingly, he was arrested on 23.06.2023 at 17:30 hrs

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