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2022 (2) TMI 566 - HC - CustomsDelay in the investigation conducted by Respondent No. 1 - country wide export ban - issuance of LC’s involving a huge sum of money - allegation against the petitioner is that it indulged in backdating, forgery and manipulation of the LC’s to circumvent the export ban on pulses which was imposed vide notification dated 27.06.2006 read with notification dated 04.07.2006 for irrevocable LC’s issued on or after 22.06.2006 - HELD THAT:- It is well settled that a realistic and practical approach should be made having regard to all attending circumstances including the nature of offence. Each case has to be considered on its own facts and circumstances with respect to being mechanically persuaded by the Courts merely because delay was occasioned during investigation. In the present matter, it is imperative to look into the reason behind the prolonged investigation. The LC’s in question were issued by a foreign bank, and therefore, a Letter Rogatory [hereinafter “LR”] had to be issued by the Chief Metropolitan Magistrate under Section 166 CrPC to New Zealand through the Interpol to investigate and unearth the facts and circumstances underlying the issuance of the LC’s. These were in relation to the procedure for opening of LC’s in WSBC Bank, identifying the persons involved, determining as to how the amended LC was issued, mode of dispatching the LC’s, collection of documents and examination of witnesses - Since the proposed agreement was in the nature of a bilateral agreement between the two countries, the concurrence of the MEA and the Department of Legal Affairs (DoLA) was required. However, a lot of time was taken in receiving the requisite clearance from the Ministries despite regular follow ups made by the Respondent No. 1 at various levels. The final draft was approved on 06.07.2017. It is clarified that the stance of the petitioner that it is only a beneficiary who does not have the duty to check the authenticity of the LC’s cannot preclude the Respondent No. 1 from interrogating the petitioner regarding the export made by the company and asking for the relevant documents in furtherance of the investigation. The further allegation that the bank advising the exporter and the bank advising the importer which have opened the LC and the importer have no quarrel with the LC and, therefore, no case is made out at all cannot be accepted. The allegation is that the LCs have been fabricated and back-dated in order to circumvent the Government's notification banning exports. Obviously, no one else will have a grievance over the transaction. It is the duty of the CBI who has received information regarding the manipulation of the LC's to investigate into the crime which has a serious effect on the economy of the country - It is clear that despite periodic reminders, there have been administrative and systemic delays over which the Respondent No. 1 had no control. It is also pertinent to note that there has been no substantial prejudice caused to the petitioner herein. The petitioner has also not been able to show any tangible loss in its trading activities. Considering the fact that the present matter deals with a country wide export ban and the issuance of LC’s involving a huge sum of money and the fact that the investigation is in its crucial stage, the balance tilts towards having a fair investigation even if it is facing considerable time. Therefore, this court is not inclined to quash the complaint at this juncture - CBI is directed to conclude the investigation as expeditiously as possible. Petition disposed off.
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