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2022 Supreme(P&H) 1898
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Arvind Singh Sangwan, J.
Anav Jain – Appellant
Versus
State Of Haryana – Respondent
CRM-M No. 51512 of 2022 (O&M)
Decided On : 01-12-2022
Mr. Nikhil Ghai, Advocate, for the Appellant; Mr. Deepak Kumar Grewal, DAG, Haryana, for the Respondent
Headnote:(A) Narcotic Drugs and Psychotropic Substances Act, 1985 - Section 20 - Quashing of FIR - Petitioner was a licensed entrepreneur intending to manufacture Ayurvedic medicines, obtained necessary licenses over three years, and was in process of starting production - FIR registered without verifying licenses, based on an unauthorized inspection, alleging preparation of 'Bhang ka Ghan' without proper authority. (Paras 1, 3, 18, 35)
(B) Legal principles regarding the definition of 'Bhang' under the NDPS Act discussed - It is established that 'Bhang' is not classified as narcotic or psychotropic, and consumption or possession of it with proper licensing does not constitute an offense under the NDPS Act. (Paras 2, 18, 35)
Facts of the case:
Petitioner applied for and received multiple licenses from various authorities for manufacturing Ayurvedic medicines, was inspected without proper authorization, resulting in an FIR for alleged violation of the NDPS Act concerning 'Hemp' purchased for medicines. (Paras 3-10, 12, 18)
Findings of Court:
The FIR was quashed on grounds of procedural irregularities and on the basis that 'Bhang ka Ghan' does not fall under the prohibited substances of the NDPS Act, and there was absence of culpable mental state against the petitioner. (Paras 18, 35)
Issues: Whether the registration of FIR under Section 20 of the NDPS Act was valid based on the authority of the complainant and the classification of the substance found. (Paras 1, 18)
Ratio Decidendi: The court found lack of authority in the complainant’s actions under the NDPS Act, allowing for quashing of the FIR; and it was clarified that without proper evidence of culpable mental state and with valid licenses, the allegations did not warrant prosecution under the NDPS Act. (Paras 18, 35)
Result: FIR No.177 dated 25.04.2022, quashed.
| Table of Content |
|---|
| 1. overview of the petitioner's business licenses. (Para 3 , 4 , 5 , 6 , 7) |
| 2. details of raw material procurement and licenses. (Para 8 , 9 , 10 , 11 , 12) |
| 3. details regarding the fir registration and allegations. (Para 13 , 14 , 15 , 16) |
| 4. defendant’s arguments against fir validity. (Para 17 , 18 , 19 , 20) |
| 5. expert opinions and precedential support. (Para 21 , 22 , 23 , 24) |
| 6. arguments concerning statutory compliance and investigation integrity. (Para 25 , 26 , 27 , 28) |
| 7. summary of court observations on statutory interpretation. (Para 29 , 30 , 31 , 32) |
| 8. final ruling and implications. (Para 33 , 34 , 35) |
JUDGMENT
Arvind Singh Sangwan, J. - Prayer in this petition is for quashing of FIR No.177 dated 25.04.2022, registered under Section 20 of the Narcotic Drugs and Psychotropic Substances Act, 1985 (in short 'the NDPS Act') at Police Station Rai, District Sonepat and all other consequential proceedings arising therefrom.
2. In pursuance to the notice of motion order, learned counsel for the State has filed a status report along with certain documents, which are taken on record.
3. Brief facts of the case as set up by the petitioner are that the petitioner is a young Entrepreneur, who has set up a Company by the name of M/s. Hemp Global Private Limited, in order to manufacture Ayurvedic/Unani/Siddha medicines and it took 03 years to complete all formalities.
4. The petitioner incorporated the Company on 26.11.2018, and thereafter, he applied to the Department of Promotion of Industry and Internal Trade, Ministry of Commerce and Industry, Government of India, who issued a Certificate of recommendation (Annexure P-2) as a 'Start-up' w.e.f. 13.02.2019, for a period of 10 years. Thereafter, the petitioner applied for a license with the State Licensing Authority (ASU), Directorate of AYUSH, Haryana, Panchkula for grant of manufacturing license and sale of Ayurveda/Unani/Siddha Medicines. The Directorate of AYUSH, Haryana, Panchkula, vide its license in Form 25-D issued under Rule 154, issued a license to manufacture and sale of Ayurveda and Unani Medicines from 02.06.2020 to 01.06.2025, with certain terms and conditions. The petitioner was granted license No.1071-ISM (HR), on the condition that he will have two Technical Staff i.e. Dr. Jitender Kumar, BAMS (Technical Person) and Sh. Madhav Aggarwal, B.Sc. (Quality Control). Vide this license, a list of 40 classical Ayurvedic Formulations were approved under Rule 157 of the Drugs and Cosmetic Rules, 1945 (hereinafter to be read as 'the Rules of 1945').
5. The petitioner, thereafter, was granted further permission for manufacturing of 60 more medicines on 17.07.2020 and again, for some more medicines on 10.09.2020, 27.11.2020, as per permissions granted by AYUSH Department, Haryana.
6. Thereafter, the petitioner started setting up of manufacturing units by purchasing machinery in the year 2021, as per various purchase bills attached as Annexures P-7 (Colly.).
7. The petitioner has also applied for manufacturing of certain medicines in which "Bhang" ("Hemp") was required as raw materials and in this regard, the petitioner applied to the AYUSH Department, Haryana, who further recommended to the Narcotic Commissioner of India, who is an officer of Central Government appointed under Section 5 of the NDPS Act, to allot a quota of 35 tonnes (with one time possession limit of 12 tonnes) vide letter dated 14.08.2020. The letters issued by the Directorate, AYUSH Department, Haryana to Narcotic Commissioner of India, Central Bureau of Narcotics, Government of India, Ministry of Finance, are relied upon as Annexures P-9 and P-10, dated 14.08.2020 and 27.11.2020.
8. In the meantime, the petitioner also applied for grant of Druggist License in Form No.24 and the Excise and Taxation Commissioner, Haryana, Panchkula, vide its communication to Deputy Commissioner of Excise, Sonepat (as the manufacturing unit of the petitioner was situated in HSSIIDC Rai, District Sonepat), granted a lice
