Lucknow: Two years after central agencies seized 32 gold bars weighing about 23 kg along with Rs 196.57 crore cash from his premises, Kanpur-based perfume baron Peeyush Jain has been acquitted by a court in connection with the gold seized ahead of the Uttar Pradesh election.
On 12 December last year, Jain moved an appeal to the chief commissioner, customs (preventive), Patna, withdrawing his claim on the gold worth around Rs 14 crore and seeking immunity from prosecution. Six days on, he was granted relief in the case.
Jain was granted immunity from prosecution on six conditions including that he pay a compounding fee of Rs 56.86 lakh to the exchequer; would not lay claim on the gold or the fine imposed on him; and that he would not revive his appeal filed before the customs commissioner (appeal), Lucknow.
After depositing the compounding fee on 29 December, he submitted an application to a Kanpur Nagar Chief Judicial Magistrate (CJM) court following which he was acquitted in the case.
In 2022, Samajwadi Party chief Akhilesh Yadav had alleged that Jain was a “BJP businessman” who was mistakenly raided by federal agencies and that the target was ex-SP MLC Pushpraj Jain ‘Pampi’, another perfumer with a similar name.
Yadav’s statement had come in the wake of PM Narendra Modi linking Jain with the Samajwadi Party during campaigning for the polls. Arrested on 26 December 2021, Jain was released from jail in September 2022.
Jain’s lawyer Yogesh Bhasin told ThePrint that the acquittal order came in the wake of the chief commissioner customs (prevention) granting immunity from prosecution due to fulfilment of six conditions.
“The order was issued by the chief commissioner customs (prevention) on 18 December 2023. Since the matter is in court and the power to stop proceedings rests with the judiciary, an application for relief was moved in the CJM court which acquitted him due to fulfilment of all conditions,” he said.
According to the CJM court’s Tuesday order in possession with ThePrint, the Directorate of Revenue Intelligence (DRI), Lucknow, opposed the compounding order stating that Jain was misleading the court.
“The prosecution/DRI Lucknow has certified that the accused has deposited Rs. 56.86 lakh to the department on 29 December, 2023 in compliance of the order issued by the chief commissioner customs (preventive), Patna within the designated time limit,” it noted.
“In para 4 of its objection, the prosecution has mentioned that while on one side, the accused admitted to his offence before the compounding officer and on the other hand, he mentioned in his affidavit submitted to the court on 4 January 2024, that he has been falsely accused which seems to show that Jain is misleading the court.”
Apart from this, the court noted, the prosecution has not presented any objection against the compounding order.
The court added that although the offences under the Customs Act are compoundable, the compounding happens not through the court but by the officer appointed under the Act.
“After the issuance of compounding order by the competent officer, the only point of consideration before the court is whether the accused has complied with all the conditions imposed by the compounding officer or not,” it noted.
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‘No gravity in DRI objection’
Stating that the conditions specified by the compounding officer have no mention about Jain admitting to his crime or any statement that he was falsely framed, the court said that there was no gravity in the objection of the prosecution.
“The prosecution has certified that the accused deposited Rs 56.86 lakh on 29 December 2023 in compliance with the Patna chief commissioner customs’ order, within the designated time. The accused has not filed any case against the confiscation of the gold and other things, complied with all other conditions imposed and no other fact remains on the record. Hence, keeping in view Sections 6 and 7 of the Customs (Compounding of Offences) Rules, 2005, the court finds it justified to allow the offence to be compounded,” it said.
Sections 6 and 7 deal with the power of the compounding authority to grant immunity from prosecution and withdrawal of immunity from prosecution in certain conditions, respectively.
“In the wake of compliance of conditions…, the accused is acquitted due to compounding and having got immunity from prosecution under Section 135 (1) (1) (A) of the Customs Act,” the court stated in its order.
Special public prosecutor, GST, DGGI, Amrish Tandon told ThePrint that the offence falls under the category of economic offences which cause losses to the exchequer and were compoundable.
“These are not heinous crimes like murder. In such cases, a court can allow immunity from prosecution after the accused deposits a penalty for compounding the offence. The accused suffered double loss as he withdrew the claim on the confiscated items, and also had to deposit the compounding fees. The compounding is subject to conditions due to which the accused has lost the right to appeal against the proceedings in the gold confiscation,” he said.
Tandon added that this order would have no effect on the proceedings of the other cases lodged in connection with the recovery of the cash.
“The six conditions levied include that the effect of the order is limited only to immunity from the prosecution of the case lodged under Section 135 of the Customs Act, and that it will not affect the other cases lodged by any other probe agency or cases lodged under other law. Hence, the proceedings of other cases will continue,” he said.
Cases against Jain
Following the raids at Kanpur and Kannauj in December 2021, the DGGI Ahmedabad unit lodged a case against Jain for tax evasion in connection with the recovery of Rs 196.57 crore cash from his premises under the CGST Act while the DRI Lucknow filed a case in connection with the recovery of the gold bars under the Customs Act.
While the DGGI is probing the case in connection with the cash recovery, the DRI Lucknow — which confiscated the gold bars and slapped a penalty of Rs 60 lakh on Jain — has probed the other case lodged against him under the Customs Act.
The DRI had filed a 430-page charge sheet that mentioned the Central Revenues Control Laboratory’s report that the confiscated gold was 99.86 percent pure.
Tandon said that in the case filed in connection with the cash recovery, the DGGI filed a 11,445-page charge sheet three months ago.
According to DRI officials, the gold has now become the property of the government and will be shifted to the mint soon after completion of all formalities.
Another DRI officer confirmed that the gold along with the Rs116.86 lakh fine deposited by Jain has become the property of the government. “A fine of Rs.60 lakh was slapped on Jain after the recovery of gold. Now, he has deposited Rs 56.86 lakh more as penalty,” the officer said.
(Edited by Tony Rai)
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