The property derived from or used in illicit traffic is to be forfeited to the Central Government, and the forfeiture should be absolute and free from encumbrances.

Dharmadhikari, J.

These two petitions involve challenge to the same order and common arguments were, therefore, canvassed. They were heard together and are being disposed of by this common judgment.

2. In the light of the earlier orders of the Division Bench, particularly, that the petitions have to be disposed of at the stage of admission itself, we grant Rule in each of these petitions and with the consent of Advocates appearing for parties, dispose them off finally by this common judgment.

3. In Criminal Writ Petition No.1435/2011, the petitioner is a private limited company incorporated under the Indian Companies Act, 1956 having its registered office at the address mentioned in the cause title. It impugns an order dated 31st March 2011 passed by the Appellate Tribunal for Forfeited property, New Delhi Camp at Mumbai.

4. By this order, the Appellate Tribunal has disposed of two appeals. As far as the petitioner's appeal is concerned, it is dismissed. The appeal preferred by the respondent Nos.3 and 4 in companion writ petition being Writ Petition No.121 of 2012 has been partly allowed.

5. The facts leading to filing of these petitions can be briefly summarised as under:-

On or about 26th March 1993, a deed of convenience was executed by and between the parties whose names are particularly mentioned in para 4 of the memo of petition No.1435 of 2011 in respect of property situate at village Kashid, Taluka Murud Janjira, District Raigad.

6. The second respondent to the above petition, issued a show cause notice to one Iqbal Mohammed Memon on 9th May 1995. The allegations are that on or about 2nd September 1994, an order of detention was issued against one Iqbal Memon @ Iqbal Mirchi under section 3(1) of the Prevention of Illicit Traffic in Narcotic Drugs and Psychotropic Substances Act, 1988. (for short “The Prevention Act”). The allegations are that this Iqbal Mirchi referred to as the Affected Party No.1 (AP1 for short) was then a citizen of India, residing in Mumbai. He left India some time in 1990. Since then, he has been residing in London.

7. On the basis of the order of detention issued and further that being not revoked or quashed by any court of competent jurisdiction, by virtue of sections 68-A(2)(e) of Narcotic Drugs and Psychotropic Substances Act, 1985 (for short “NDPS Act”), the illegally acquired by AP1 are liable for forfeiture under the said Act. It was mentioned in the show cause notice that one Mrs.Heena Kauser @ Heena Iqbal Memon @ Heena Kausar Kasif is the wife of A.P.1. Therefore, she also falls within the ambit of said provisions of NDPS Act. After referring to the other Affected Parties, the notice recites that the order under section 68-F(1) of the NDPS Act freezing the properties of the Affected parties was issued by the Deputy Commissioner of Police, Narcotics Cell C.B. C.I.D. Mumbai by an order dated 23rd March 1995 and the same was confirmed on 19th April 1995. Copy of the said order of freezing has been annexed as Annexure A to the petition.

8. The show cause notice then refers to the various accounts with State Bank of India, Santacruz (West) Branch, Union Bank of India, Juhu Tara Road, Mumbai branch and directs that the law prohibits holding of illegally acquired properties by the persons covered by section 68A of the NDPS Act. The competent authority, therefore, stated that several opportunities were given to AP1 to AP3 to furnish proof regarding source of acquisition of properties mentioned in para6 of the show cause notice. Since, no explanation or any written statement has been received that the competent authority alleged that he has reason to believe, particularly, in view of AP-1's notorious international image of being a drug trafficker that the properties mentioned in paras6 and 7 of the show cause notice been acquired out of the illegal source of earnings of AP1, 2 and 3. They have no known source of income and the other two A.Ps. namely A.P.2 and A.P.3 appeared to be associates of A.