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Synopsis

The Delhi High Court, on Wednesday, held that the circulation of counterfeit currency impaired the economic security of the nation and that such circulation could have had a detrimental impact on the economy. 

The bench of Justice Prathiba M. Singh and Justice Amit Sharma held, “Circulation of fake currency impinges upon the economic security of the country, and such circulation could have a disastrous effect on the economy”. 

Mohammad Shahjan was apprehended on 12th January 2022 upon his arrival at Terminal-3, IGI Airport, New Delhi, from Ras-al-Khaimah, UAE. A search conducted by Customs officials led to the recovery of Fake Indian Currency Notes of Rs. 500/- denomination, totaling 2000 notes, amounting to Rs. 10 lakhs. Additionally, 175 grams of gold was also recovered.

The allegation was that Mohammad Shahjan intended to hand over the fake currency to Amir-ul-Haq at Delhi Airport, who was also intercepted and arrested. On 15th January 2022, the sum of Rs. 10 lakhs, which had been seized, was sent to the Currency Note Press, Nasik, for examination. The report dated 31st January 2022 classified the recovered fake currency as high-quality counterfeit Indian currency.

Sections 16 and 18 of the UAPA were invoked, and Mohammad Shahjan was arrested on 1st March 2022. The allegation was that he was closely associated with Amir-Ul-Haq, who was described as the kingpin and referred to as ‘Sheikh Sahab.’ According to the chargesheet dated 24th June 2022, he was involved in making payments for visas and air tickets, etc., between November 2021 and January 2022.

The case against Abdul Wahid was that he facilitated the other two accused, Mohammad Shahjan and Amir-Ul-Haq, in smuggling fake currency and other counterfeit articles from Dubai to India. According to the chargesheet, prior to the consignment that was seized, at least 10 to 15 consignments were alleged to have been sent under the direction of Abdul Qadir from Dubai through a human carrier, for whom Abdul Wahid had arranged visas and air tickets.

Advocate Rahul Raheja, representing Abdul Wahid, argued that the Trial Court had erroneously denied the bail application. Abdul Wahid was not involved in the smuggling of counterfeit currency and instead was a businessman engaged in the export/import of burkhas and gold. Advocate Rahul Raheja argued that there was no evidence on record linking Abdul Wahid to counterfeit currency. Additionally, it was noted that co-accused Amandeep Singh was discharged by the Trial Court and granted regular bail. 

In contrast, Special Public Prosecutor (SPP) Gautam Narayan, representing the National Investigation Agency (NIA), argued that the testimonies of Mohd. Irshad, Mansooruddin, and Faiz Ahmad provided clear evidence of the Wahid’s involvement. SPP contended that the impugned order was well-reasoned, based on a thorough review of the investigation materials, and did not contain any errors or irregularities warranting this Court’s interference.

The court observed that an examination of the provision revealed that the standard for granting bail under Section 43-D(5) of the UAPA was stringent. Bail could not be granted if the court found prima facie grounds to believe the allegations against the accused were true.

The court also noted that the Sessions Court had framed charges under Section 18 of the UAPA against Wahid and had subsequently discharged him under Section 16 of the UAPA.

Upon reviewing Wahid's disclosure statement, it was revealed that he admitted Abdul Qadir had contacted him in December 2021, requesting that he transfer Indian currency to unidentified individuals. The NIA  stated that he regularly delivered air tickets and visas to Wahid and confirmed that Amir-Ul-Haq had explained that Abdul Qadir was his business partner who provided goods, necessitating the use of carriers. The NIA contended that Wahid was actively engaged in the business of air tickets and visas, which were booked under Abdul Qadir's instructions, and noted several payments received from Wahid for these services. 

Furthermore, the court examined the transcripts of phone conversations from Amir-Ul-Haq’s mobile device, recovered on 12th January 2022, frequently referenced Wahid, and were translated and entered into evidence. The Trial Court reviewed and analyzed these facts, and the evidence, along with statements, suggested reasonable grounds to believe that Wahid was involved in the circulation of high-quality counterfeit Indian currency.

The court rejected Wahid’s claim of ignorance about the currency’s authenticity and his assertion of involvement in the import/export business would need to be proven at trial. Accordingly, the court denied grant of bail and dismissed the appeal. 

The court noted that evidence prima facie shows Wahid’s involvement by Wahid in facilitating the circulation of high-quality counterfeit Indian currency. The term ‘economic security’ had been included as a ‘terrorist act’ under Section 15 of the UAPA in 2013, with a definition for ‘high quality counterfeit Indian currency.’ Such activities often involve covert international networks, making investigations challenging.

Accordingly, the court dismissed the appeal. 

Case Title: Abdul Wahid Alias Saddam v National Investigation Agency (2024:DHC:5824-DB)