APPELLATE TRIBUNAL UNDER SAFEMA AT NEW DELHI (1) MP-ND-18/MUM/2012 (Stay)

FPA-ND-13/MUM/2011 Mitaben P. Patel … Appellant (2) MP-ND-19/MUM/2012 (Stay)

FPA-ND-14/MUM/2011 M/s. T.M. Shroff … Appellant (3) MP-ND-20/MUM/2012 (Stay)

FPA-ND-15/MUM/2011 M/s. Maganlal Chaturbhai & Co. … Appellant Versus The Competent Authority, Mumbai … Respondent Advocates/Authorized Representatives who argued For the appellants : Ms. Madhavi Khare, Adv.

Ms. Apoorva Bhumesh, Adv.

For the respondent : Counsel appeared.

CORAM SHRI V. ANANDARAJAN : MEMBER SHRI RAJESH MALHOTRA : MEMBER

FINAL ORDER

30.09.2024 The present appeals are preferred against the order dated

19.08.2011 (as modified by the corrigendum dated 02.09.2011) of the Competent Authority, Mumbai in F. NO. CA/AHD/NDPS/P-1/1993-

94/1375, made under 68-I of the NDPS Act, 1985.

Facts in Brief:

2. The brief facts of the case are that Dr. Bipin Shantilal Panchal was convicted by Additional City Sessions Judge, Ahmedabad in Session Case No. 162/1994 dated 26.07.2002 under NDPS Act and was sentenced to suffer a rigorous imprisonment of 20 years under section 22, 23 & 29 of the NDPS Act read with section 120-B of the Indian Penal Code, therefore, the provisions of Chapter VA of the NDPS Act were applicable to him.

3. Sh. Prahladbhai Maganlal Patel, Smt. Mitaben P.Patel , M/s. T.M. Shroff, M/s Maganlal Chaturbhai & Co. and M/s Shreeji Builders were found to be falling within the definition of „associate‟ of Dr. Bipin Shantilal Panchal in terms of Section 68B(b)(vii) read with section 68A(2)(e) of the Act. Hence, proceedings under Chapter VA the provisions of the Act were initiated against them also.

4. Accordingly, consequent to the conviction of Dr. Bipin Shantilal Panchal, a Show Cause Notice No. CA/AHD/NDPS/P-1/1993-94 dated 04.07.2008 was issued to all the appellants herein calling upon them to send their written submission and explanation within 35 days from the date of receipt of the Show Cause Notice giving the sources of their income, earning and assets out of which or by means of which the properties mentioned therein were acquired, along with evidences relied upon and other relevant information and particulars. They were further asked to state as to why these properties should not be declared as illegally acquired properties and forfeited to Central Government free from all encumbrances. In response to the Show Cause Notice, written submissions were filed by the appellants. Opportunity of personal hearing was also granted by the Ld. Competent Authority during the course of the proceedings. The proceedings culminated in the impugned order whereby the following properties of the appellants herein were forfeited:

Aggrieved by the said order of the Ld. Competent Authority, the appellants have filed these appeals challenging the aforesaid order on various factual and legal grounds.

Contentions on behalf of the Appellant:

5. The counsel on behalf of the Appellant contended that, in the year 1993, Dr. Bipin Shantilal Panchal, Mr. Prahladbhai Maganbhai Patel and five other persons were booked under the NDPS Act, 1985, on account of seizure of 2000 kg of Mandrax, a psychotropic substance.

6. While Dr. Bipin Shantilal Panchal was convicted, Sh. Prahladbhai M. Patel, was acquitted vide order dated 26.07.2002 passed by the Addl. Sessions Judge, Ahmedabad. This order was upheld by the Gujarat High Court and the Supreme Court and has thus attained finality.

7. Post the acquittal, in 2007, Sh. Prahladbhai M. Patel and his wife, Mitaben Prahladbhai Patel, purchased a property (E-503, Shankar Apartment, Anandnagar Road, Ahmedabad) for 22 lakhs. Mitaben Prahladbhai Patel is a partner in M/