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2025 Supreme(Guj) 1880

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
HASMUKH D. SUTHAR, J.
Abhishek Kailashchandra Jain, Thro. Poa Wagad Infra Project Pvt. Ltd. - Applicant
Versus 
State Of Gujarat & Anr. – Respondents
R/Special Criminal Application (Possession Of Muddamal) No. 9746 of 2025 
Decided On : 09-09-2025

Advocates Appeared:
For the Applicant : Mr R.K. Mansuri.
For the Respondents: Mr Manan Maheta, APP.

The court upheld the authority's seizure of vehicles under mining regulations due to non-compliance by the petitioner and ongoing confiscation proceedings.

Headnote:(A) Constitution of India - Articles 226 and 227 - Bharatiya Nagarik Suraksha Sanhita, 2023 - The petitioner sought the release of muddamal vehicles seized by the authorities claiming no illegal activities were involved, while the respondent maintained that there were violations of mining regulations leading to confiscation. The petition was dismissed on grounds of pending confiscation proceedings and the petitioner's failure to comply with compounding requirements. (Paras 4.0, 10.0)

(B) Natural Resources Law - Illegal mining regulations - The court emphasized the importance of ensuring that vehicles involved in illegal activities remain confiscated to prevent reoccurrence, citing the special legislative framework governing mining activities. (Paras 9.1, 10.1)

Facts of the case:
The petitioner, a company involved in infrastructure projects, contested the seizure of vehicles used for construction on allegations of illegal mining without proper permits. The petitioner argued that the vehicles were not part of any illegal activity as they were used in accordance with a contract with the NHAI.

Findings of Court:
The court found that proceedings for confiscation were pending and that the petitioner had not shown willingness to comply with statutory requirements for the release of the vehicles. The rejection of the application for release was justified given the ongoing special law proceedings.

Issues: The primary issues were the legality of the seizure of the vehicles in light of the alleged violations, the applicant's compliance with applicable rules, and whether the court had jurisdiction to grant release of vehicles under contested conditions.

Ratio Decidendi: The court ruled that the failure of the petitioner to provide a bank guarantee for the value of the confiscated items, while confiscation proceedings were pending, warranted the dismissal of the application for release. The court emphasized adherence to the provisions under the MMRD Act as a guiding principle.

Result: Petition dismissed.

ORDER :

HASMUKH D. SUTHAR, J.

[1.0] RULE. Learned APP waives service of notice of Rule for and on behalf of the respondent No.1 – State of Gujarat.

[2.0] By way of present petition under Articles 226 and 227 of the Constitution of India read with Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (for short “BNSS”), the petitioner has prayed for the following reliefs:

“(B)THIS HON’BLE COURT WOULD BE PLEASED TO quashed and set aside the order passed by the 4th Additional Sessions Judge, Patan in Criminal Misc. Application No.368 of 2025 dated 19.06.2024 and thereby, release the vehicles and equipments of the petitioner, in the interest of justice;

(C) THIS HON’BLE COURT WOULD BE PLEASED TO grant interim custody of the following vehicles and equipments on such conditions as it may deem fit to this Hon’ble Court.

(1) Transit Mixer of Eicher Company bearing Registration No.GJ-18-BV-2667; (2) Transit Mixer of Eicher Company bearing Registration No.GJ-18-BV-4187; (3) Transit Mixer of Eicher Company bearing Registration No.GJ-18-BV- 2795; (4) Curb Cutting Machine; (5) Bolero Camper of Mahindra Company bearing Registration No.GJ-18-BV- 1428; (6) Ready Mix Concrete Plant of Wagadh Infra Project Private Limited and (7) Sudhir Power Limited Company Diesel Generator Modal No.SLP200 (Sr. No.2304Q532)”

[3.0] The brief facts giving rise to present petition are as follows:

[3.1] The petitioner – M/s. Wagad Infra Project Limited is formed and registered under companies Act 1932 on 25.10.1999 with the Registrar of Companies, Banswara (Reg. No.: 03/26/99). The petitioner has implemented number of road and infrastructure projects throughout the country including numerous projects National Highway Authority of India. The Petitioner Company is owner of the muddamal vehicles and equipments, which are used for construction of roadways.

[3.2] As the petitioner – company was not willing to deposit the said amount or compound the said offence, respondent No.2 – Authorized Officer moved the learned Designated Court under Rule 12(2)(b)(ii) of the Rules, 2017 for confiscation of the vehicle on 04.12.2024 and application under Section 497 of the BNSS came to be filed for release of vehicles but as the petitioner was neither ready and willing to compound the offence nor to deposit amount equivalent to 1.5 times of the valuation of muddamal vehicles and machineries mentioned in the seizure Form No.J, said application came to be turned and hence, the petitioner has approached this Court.

[3.3] The petitioner participated in the tender process for construction of Four Lane Divided Carriageway with Paved Shoulder from Patan (Near Rajpur) to Gojariya having a length of 76.940 km with the National Highway Authority of India ("NHAI" for short) and the petitioner was successful bidder in the same. Furthermore, on 28.03.2022, Letter of Award for the said project was issued to the petitioner. That, on 02.11.2022, an agreement was executed between the petitioner and the Ministry of Road Transport and Highways, Government of India through NHAI for, the aforementioned project of construction of highway road.

[3.4] After the aforesaid agreement dated 02.11.2022 was executed by the petitioner on 07.06.2023, the petitioner applied/obtained an online registration by making an Application in Form B as per Rule 4(3) and (7) of the Gujarat Mineral (Prevention of Illegal Mining Transportation and Storage) Rules, 2017 ("Rules of 2017" for short) for storage of the said minerals in land Survey No. 83 of village Jasalpur, Taluka Chansma, District Patan (hereinafter referred to as "the said lands"). Rule 4(7) of the Rules provides from automatic approval upon registration for each construction project with respect to which more than one hundred metric tonnes of mineral specified in Part A of the Schedule III of the Gujarat Minor Mineral Concession Rules, 2017 (for short "Concession Rules").

[3.5] That, on the basis of a telephonic complaint against the petitioner, on 22.10.2024, inspec

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