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IN THE HIGH COURT OF JUDICATURE AT MADRAS
N. ANAND VENKATESH, J.
V.G. Sekar & Others - Appellant
Versus
Government of India, Rep.by Joint Commissioner/Competent Authority, Chennai & Others - Respondent
W.P. Nos. 23663 of 2003 & 24589, 25538 of 2011 & WVMP No. 2106 of 2013 & WMP Nos. 33719, 33297, 33299, 33602, 33606, 33717 of 2019
Decided On : 12-09-2022
NDPS Act - Forfeiture Orders - Sections 68-I, 68-M, 68-U - The court quashed the impugned orders in the Writ Petitions and allowed the petitions, finding that the freezing and forfeiture orders must fail since the detention order against Y.V.Nagaraj was quashed and the authorities failed to establish Y.V.Nagaraj as an associate of Umarji Musa Patel. The court also highlighted the relevance of Section 68-Z, stating that once a detention order is set aside, the properties seized or frozen will stand automatically released.
Fact of the Case:
The petitioners challenged forfeiture orders passed by the Competent Authority under the NDPS Act, relating to properties they had purchased. The Competent Authority justified the orders based on the association of the properties with individuals detained under the NDPS Act.
Finding of the Court:
The court found that the freezing and forfeiture orders must fail since the detention order against Y.V.Nagaraj was quashed and the authorities failed to establish Y.V.Nagaraj as an associate of Umarji Musa Patel. The court also highlighted the relevance of Section 68-Z, stating that once a detention order is set aside, the properties seized or frozen will stand automatically released.
Issues: The issues involved included the validity of the forfeiture orders, the association of the properties with individuals detained under the NDPS Act, and the applicability of relevant provisions such as Section 68-Z.
Ratio Decidendi: The court's decision was based on the quashing of the impugned orders, finding that the freezing and forfeiture orders must fail since the detention order against Y.V.Nagaraj was quashed and the authorities failed to establish Y.V.Nagaraj as an associate of Umarji Musa Patel. The court also highlighted the relevance of Section 68-Z, stating that once a detention order is set aside, the properties seized or frozen will stand automatically released.
Final Decision: The court quashed the impugned orders in the Writ Petitions and allowed the petitions, finding that the freezing and forfeiture orders must fail since the detention order against Y.V.Nagaraj was quashed and the authorities failed to establish Y.V.Nagaraj as an associate of Umarji Musa Patel. The court also highlighted the relevance of Section 68-Z, stating that once a detention order is set aside, the properties seized or frozen will stand automatically released.
JUDGMENT
(Prayer: Writ Petition under Article 226 of the Constitution of India, praying for the issuance of a Writ of Certiorarified Mandamus, to call for the records of the First respondent in F.No.OCA/MDS/1/91(NDPS) dated 30.07.2003, quash the same and consequently forbear the first respondent from interfering with the petitioner's possession and enjoyment of the flat bearing No.3, Rajarajeswari Apartments, 25 and 26, Warren Road, Mylapore, Chennai-600 004 admeasuring 1148 Sq.Ft., along with the proportionate subdivided share of 4.10%, of the total extent of 12904 sq.ft., i.e., 529 sq.ft., or thereabouts.
Writ Petition under Article 226 of the Constitution of India, praying for the issuance of a Writ of Certiorarified Mandamus, to call for the records relating to the Proceedings under Narcotics Drugs and Psychotropic Substances 1985 in F.No.1-N/NDPS/ 94-95 dated 22.09.2011 of the Respondent herein and quash the same and direct the Respondent to remove the Board fixed by the Respondent on 30.9.2011 mentioned in the schedule property as referred in the impugned order.
Writ Petition under Article 226 of the Constitution of India, praying for the issuance of a Writ of Certiorari, to call for the records relating to the impugned order in F.No.1-N/NDPS/94-95 dated 04.10.2011 passed by the 1st respondent and quash the same.)
Common Order:
1. The issues involved in all these Writ Petitions are common and hence they are taken up together, heard and disposed of through this common order.
2. The petitioners in W.P.No.23663 of 2003 and W.P.No.24589 of 2011 have challenged the forfeiture order passed by the 1st respondent under Section 68-I of the Narcotic Drugs and Psychotropic Substances Act, 1985 (hereinafter referred to as ‘the NDPS Act’) dated 29.11.1999 and the consequent notice of the 1st respondent dated 22.09.2011.
3. The petitioner in W.P.No.25538 of 2011 has challenged the impugned order of the 1st respondent dated 04.10.2011, wherein a direction was issued to the petitioner to handover the possession of the subject property.
4. The petitioners in W.P.No.23663 of 2003 purchased the subject property viz., a flat measuring 1148 sq.ft., along with the proportionate undivided share in the land from the 2nd respondent through a registered sale deed dated 03.11.1999. Subsequent to the purchase of the subject property, the tenant who was in occupation of the flat was served with an order dated 30.07.2003, whereby, a direction was issued by the 1st respondent directing the possession of the flat to be handed over to the Competent Authority within a period of 30 days. On coming to know of this order served on the tenant, the petitioners enquired and they found that a forfeiture order was passed on 29.11.1999, by the Competent Authority under the NDPS Act against one Y.V.Nagaraj, forfeiting the subject property which stood in the name of his wife, viz., the 2nd respondent. Thereafter, an order dated 24.03.2000 was passed under Section 68-U of the NDPS Act, directing the 2nd respondent to surrender and deliver possession of the property. The appeal filed by the 2nd respondent against this order was also dismissed by the Tribunal through an order dated 24.4.2002. Pursuant to the same, notice was issued to the tenant to vacate and handover the possession. Aggrieved by the same, this Writ Petition was filed before this Court.
5. Insofar as the petitioners in W.P.No.24589 of 2011 are concerned, they purchased the property measuring an extent of 86 cents through two sale deeds dated 11.09.2007. Similarly, they also purchased another extent of 56 cents through a sale deed executed during June 2010. Both the sale deeds were executed by M/s. Nikita Aqua Culture Pvt., Ltd. The petitioners received the impugned order dated 22.09.2011 passed by the 1st respondent under Section 68-M of the NDPS Act, directing the petitioners to handover possession of the property. On receipt of this order, the petitioners enquired and they found that one Y.V.Nagaraj was arre
The main legal point established in the judgment is that the freezing and forfeiture orders under the NDPS Act must fail if the detention order against the individuals associated with the properties ....
The court upheld the seizure of properties under the NDPS Act, emphasizing the necessity of demonstrating a direct link between properties and illegal narcotics activities for forfeiture.
The burden of proof lies on the accused to demonstrate that properties are not illegally acquired under the NDPS Act, with the competent authority's findings upheld due to insufficient evidence.
A bona fide purchaser cannot claim rights to property transferred during ongoing forfeiture proceedings under SAFEMA, as the vendor lacked title to transfer.
A detention order's revocation invalidates associated property forfeiture actions unless a direct nexus to illegal gains is established, emphasizing due process protections.
The burden of proof lies on the affected person to establish the legality of property acquisition in forfeiture proceedings under COFEPOSA and SAFEMA.
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