The court held that gold ornaments can be released even if subject to criminal proceedings, provided appropriate conditions are imposed, balancing the petitioners' rights and prosecution needs.

COMMON ORDER

Gold has appreciated in value always. The consistent rise in value and easy convertibility of gold results in a surge in its demand. Complying with the standards of purity of gold is hence vital to prevent fraudulent activity. Gold and other precious metals are hallmarked to ensure that the standards of purity are met. The Bureau of Indian Standards Act, 2016 was enacted to provide for the establishment of a national body for the assessment and assurance of the quality of goods sold or exhibited for sale.

2. The officers of the Bureau of Indian Standards conducted searches at the petitioners' jewellery outlets and seized large quantities of gold ornaments, alleging various violations of the above-referred statute. Subsequently, the department filed two complaints, S.T. No. 1410/2024 and S.T. No.1411/2024, both before the Judicial First Class Magistrate’s Court, Kalamassery, alleging various violations. The accused filed applications for interim custody of the gold. These four cases revolve around the claim for interim custody of a portion of the gold seized.

3. Crl.M.C No.4834/2024 and Crl.M.C No.5305/2024 challenge the common order dated 23-05-2024 in CMP No.801/2024 in S.T. No.1410/2024, while Crl.M.C No.5735/2024 and Crl.M.C No.5306/2024 challenge another common order issued in CMP No.802 of 2024 in S.T. No.1411/2024, both pending before the Judicial First Class Magistrate’s Court, Kalamasserry. Crl.M.C No.4834/2024 and Crl.M.C No.5735/2024 challenge condition No. 2 in the two orders to the extent it directs furnishing of a bank guarantee to the tune of Rs. 18 crores and Rs. 2 crores respectively, while the challenge in the remaining two petitions are against the orders itself. Since the issues involved in these four cases are identical, they are disposed of by this common order. For the purpose of easier comprehension, the accused are referred to as the ‘petitioners’ while the complainant is referred to as the ‘respondent’ in this proceeding.

4. The impugned orders arise out of two separate applications filed by the petitioners under section 457 of the Code of Criminal Procedure, 1973, seeking the release of certain gold ornaments seized from its business establishment. By the impugned order, the learned Magistrate directed the release of gold ornaments to the petitioners on conditions. Petitioners are aggrieved by condition No.2 in both the impugned orders while the complainant (Bureau of Indian Standards or 'BIS for short') is aggrieved by the orders directing the release of the gold ornaments on interim custody.

5. On 13-12-2023, the officers of the respondent conducted a search at the premises of different outlets of the petitioner and found gold ornaments exhibited for sale without possessing a BIS hallmark and without a BIS certificate of registration for the outlet, thereby violating sections 15(1), (2) & (3) apart from sections 17(1),(2) & (3) of the Bureau of Indian Standards Act, 2016 (for short ‘the BIS Act’), apart from clause 2(1) & (2) of the Hallmarking of Gold Jewellery and Gold Artefacts Order, 2020. The entire jewellery was seized and Superdari Memos were prepared indicating violations under three categories. The petitioner was directed not to deal with the gold in all three categories, without permission from the respondent.

6. After the two complaints relating two separate outlets of the petitioners were filed on 18-04-2024 as S.T. Nos. 1410/2024 and 1411/2024 before the Judicial First Class Magistrate’s Court, Kalamassery, petitioner filed two separate applications seeking release of the gold ornaments which fell in one of the categories., i.e. those with valid hallmarking but were exhibited for sale without a valid certificate of registration for the outlet. Petitioner did not claim release of the gold ornaments which were categorized as those without hallmarking or had fake hallmarkings. It was pleaded in the petition that the process for obtaining the certificate of registration for the o