Mumbai, March 7, 2024 – Arvind Rameshbhai Desai has been denied bail by the Sessions Court for Greater Mumbai in connection with a ₹21 crore insecticide smuggling case. Additional Sessions Judge Rajesh A. Sasne rejected Desai’s bail application (Criminal Bail Application No. 449 of 2024), citing the ongoing investigation and Desai’s alleged role in a larger smuggling syndicate.

Desai was arrested on January 30, 2024, in connection with F. No. DRI/MZU/F/INT-94/2023, for offenses punishable under Sections 132 and 135(1)(a), 135(1)(b) of the Customs Act, 1962.

Prosecution’s Case:

The Directorate of Revenue Intelligence (DRI) developed intelligence indicating that consignments imported by M/s. B H Industries contained restricted insecticides, violating the Insecticides Act, 1968. Upon examination, the consignments were found to contain smuggled insecticides, which were seized under Section 110 of the Customs Act, 1962. The prosecution alleges that Desai attempted to smuggle approximately 27 metric tons of insecticides, valued at over ₹21 crore. They further contend that Desai is a member of a larger syndicate involved in the systematic smuggling of restricted insecticides.

Defense Arguments:

Desai’s advocates, Inderpal Singh and Rahul Sagar, argued that their client was falsely implicated. They claimed that the goods imported by M/s. B.H. Industries were not insecticides but were mistakenly shipped instead of the goods ordered by M/s. M.H. Industries. They presented an email dated May 12, 2023, from the shipper, admitting the error and requesting the return of the consignment.

Court’s Decision:

Judge Sasne, after reviewing the documents and hearing the arguments, noted several factors suggesting Desai’s involvement in the smuggling operation. The court highlighted that:

• M/s. Delta Chemfine, owned by Desai’s nephew but allegedly operated and controlled by Desai, was involved in supplying goods to M/s. Drosera International.
• M/s. B.H. Industries, allegedly set up by Desai through Krishnarajsinh Jadeja, facilitated the movement of goods to M/s. Drosera International.
• Desai operated the email IDs of M/s. K.H. Industries and M/s. B.H. Industries.
• The required registration for importing insecticides was not obtained.
• The email claiming a shipping error appeared to be an afterthought, sent to conceal the smuggling operation.
• The declared value of the consignment was significantly lower (₹77,46,254) than the actual value (₹21 crore).

The court emphasized that the investigation was ongoing, involving foreign suppliers, and that Desai possessed material knowledge about the alleged transactions. It expressed concern that releasing Desai on bail could lead to the tampering of evidence and impede the investigation into the larger smuggling syndicate.

Considering the seriousness of the offense, the substantial amount involved, and the ongoing investigation, the court concluded that Desai was not entitled to bail at this stage.

Conclusion:

The court rejected Desai’s bail application, emphasizing the need for a thorough investigation into the alleged insecticide smuggling operation and the potential involvement of a larger syndicate.