Incomplete Bank Trail Fails to Lift NDPS Property Freeze: SAFEMA

Piyushbhai Ashokbhai Patel Vs Competent Authority (Appellate Tribunal under SAFEMA)

ITRs and CA Certificate Alone Cannot Prove Clean Source of Property: NDPS Tribunal Upholds Freezing of Flat

Summary: The Appellate Tribunal under SAFEMA has upheld the freezing of a residential flat under the Narcotic Drugs and Psychotropic Substances Act, 1985, holding that income-tax returns, a Chartered Accountant’s certificate and an incomplete loan statement cannot establish the legitimate source of property when the relevant bank statements, loan sanction documents and evidence of repayment are withheld. Once the property is identified within the statutory period and the person is covered as an “affected person,” the burden shifts upon him under Section 68-J to establish that the property was not acquired from illicit income.

Huge Recovery of Mephedrone and Alprazolam

On 16 August 2022, the Gujarat Police recovered 225.053 kilograms of Mephedrone, valued at approximately Rs.1,125.26 crore, from the premises of Nectar Chem, a partnership firm at Village Moksi, Vadodara. The police also recovered Rs.14 lakh in cash, stated to represent sale proceeds of contraband, and 1,753.300 kilograms of Alprazolam.

The appellant, along with four other persons stated to be partners of the firm, was arrested for allegedly manufacturing and selling narcotic substances without a licence. The authorities alleged that substantial quantities of Mephedrone had already been sold to other accused persons. Since the quantity recovered was commercial quantity and the alleged offences were punishable with rigorous imprisonment of ten years or more, the appellant was treated as an “affected person” under Section 68-A(2)(cc) of the NDPS Act.