Category: ACTS

Aadrikaa Legal Services (ALS)- Law I Litigation I Arbitration

Date: 30.10.2026

Supreme Court: Section 37 NDPS Bail Conditions Cannot Be Ignored Merely Because No Drugs Were Recovered from Accused

The Supreme Court of India set aside the Delhi High Court’s bail order in Narcotics Control Bureau v. Mohit Aggarwal, reaffirming that bail in NDPS cases involving commercial quantities is subject to the strict “twin conditions” in Section 37 of the NDPS Act.

Background of the case

The case arose from a Narcotics Control Bureau (NCB) operation in January 2020. Acting on information that a courier parcel booked from Agra for delivery in Ludhiana contained narcotic substances, NCB officers searched the courier company’s godown in Delhi.

The parcel was labelled as containing “surgical items,” but officers allegedly recovered 50,000 Tramadol tablets weighing 20 kg. The prosecution alleged that the consignment had been sent without a valid bill and had been mis-declared.

During the investigation, the NCB traced the alleged supply chain to several persons, including Mohit Aggarwal. Searches later led to the recovery of a much larger stock of psychotropic substances from the godown of another accused, Promod Jaipuria. The reported seizure included Tramadol, Zolpidem and Alprazolam tablets and capsules, injections, and syrup bottles, amounting to hundreds of kilograms of controlled substances.

Mohit Aggarwal was arrested on 11 January 2020. His two bail applications before the Special Judge under the NDPS Act were rejected. However, the Delhi High Court subsequently granted him post-arrest bail under Section 439 of the Code of Criminal Procedure.

The central legal issue

The key question before the Supreme Court was whether the High Court had correctly applied Section 37 of the Narcotic Drugs and Psychotropic Substances Act, 1985 while granting bail.

Section 37 imposes additional restrictions on bail where the alleged offence involves commercial quantities of narcotic drugs or psychotropic substances. Before bail can be granted, the court must satisfy two cumulative conditions when the prosecution opposes release:

• there must be reasonable grounds to believe that the accused is not guilty of the alleged offence; and
• the accused must not be likely to commit an offence while on bail.

The prosecution must also receive an opportunity to oppose the bail application.

Arguments before the Court

NCB’s case

The NCB argued that the High Court had taken an overly narrow view by focusing on the absence of any recovery from Mohit Aggarwal’s residence or shop. It contended that the investigation yielded independent circumstantial material connecting him with the alleged drug network.

According to the NCB, disclosures attributed to Mohit Aggarwal led officers to the godown from which a substantial quantity of psychotropic substances was recovered. It also relied on call-detail records said to show contact between the co-accused. The agency argued that these circumstances, together with the commercial quantity involved, made the grant of bail contrary to Section 37.

Respondent’s case

Mohit Aggarwal argued that the consignment had not been booked by him, no narcotics were recovered from him, and searches of his residence and shop produced nothing incriminating. He also challenged reliance on statements recorded under Section 67 of the NDPS Act.

The respondent relied on the Supreme Court’s ruling in Tofan Singh v. State of Tamil Nadu, which held that confessional statements recorded under Section 67 are inadmissible at trial under the NDPS Act. He further pointed to the period already spent in custody, the filing of the charge-sheet, and the commencement of trial.

Supreme Court’s ruling

The Supreme Court allowed the NCB’s appeals, quashed the High Court’s bail order, cancelled Mohit Aggarwal’s bail bonds, and directed that he be taken into custody.

The Court agreed that the alleged confessional statements recorded under Section 67 could not be relied upon as substantive confessions in light of Tofan Singh. However, it held that this did not end the inquiry. The prosecution had also relied on other material, including the alleged recovery following the respondent’s disclosures and phone records indicating contact among the co-accused.

The Court held that the High Court should not have treated the absence of a recovery from the respondent’s personal possession as sufficient to conclude that he was not guilty. That conclusion was premature at the bail stage, particularly when other circumstantial evidence was on record.

Meaning of “reasonable grounds” under Section 37

A major contribution of the judgment is its explanation of the phrase “reasonable grounds.” The Court reiterated that this standard requires more than a prima facie view. It calls for substantial and credible probable grounds for believing that the accused is not guilty.

At the same time, the Court clarified that a bail court is not expected to conduct a mini-trial or finally determine guilt. The inquiry is limited: whether the material available gives the court reasonable grounds to believe that the accused is not guilty and unlikely to reoffend while on bail.

This approach reflects the special statutory framework of the NDPS Act. In ordinary criminal cases, the general bail principles under the Code of Criminal Procedure apply. In commercial-quantity NDPS cases, those principles are supplemented by the stricter statutory threshold in Section 37.

Why the High Court’s approach was rejected

The Supreme Court identified three core problems with the grant of bail:

• Insufficient application of Section 37: The High Court did not adequately assess whether both statutory conditions for bail had been met.
• Overemphasis on lack of personal recovery: The absence of contraband at the respondent’s residence or shop did not by itself establish that he was unconnected with the alleged offence.
• Failure to account for circumstantial evidence: The alleged recovery from a co-accused’s godown and the call-detail records were relevant material that required consideration, even if Section 67 confessions were excluded.

The Court also made clear that the duration of custody, filing of the charge-sheet, and commencement of trial are not, by themselves, persuasive grounds for granting bail where Section 37 applies.

Significance of the decision

Narcotics Control Bureau v. Mohit Aggarwal is an important bail decision under the NDPS Act because it reinforces the limited scope for release in commercial-quantity cases. It confirms that courts must separately and carefully apply the two conditions in Section 37 rather than relying only on ordinary bail considerations.

The ruling also draws a practical distinction between inadmissible Section 67 confessions and other evidence. While an accused’s alleged confession to an NDPS officer cannot be used as substantive evidence at trial, independent circumstances such as recoveries, communications records, and other investigative material can still be relevant at the bail stage.

Key takeaway

The judgment confirms that in commercial-quantity NDPS cases, bail cannot rest merely on the absence of direct recovery or on time spent in custody; the court must find credible and substantial grounds to believe the accused is not guilty and unlikely to commit another offence while on bail.

Aadrikaa Legal Services is a trusted legal and regulatory support partner providing end-to-end legal solutions to law firms, corporate organizations, and businesses across India. We specialize in paralegal services, litigation support, tax and regulatory matters, delivering reliable, efficient, and result-oriented legal assistance.

Our services include comprehensive paralegal support, drafting and documentation, legal research, case management, litigation handling, and representation support across various judicial and quasi-judicial forums. We also assist in direct and indirect tax matters, customs, GST, corporate regulatory compliance, and legal advisory.

Source: Supreme Court

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Ravi Shekhar Jha – Advocate, Bar Council of Delhi

Aadrikaa Legal Services (ALS)- Law I Litigation I Arbitration

Date: 28.10.2026

Supreme Court: Mere Allegations of Drug Trafficking Financing Cannot Establish Guilt Under Section 27A NDPS Act

The Supreme Court of India set aside Mohammed Fasrin’s conviction under the Narcotic Drugs and Psychotropic Substances Act, 1985 (NDPS Act), holding that the prosecution failed to produce reliable, corroborated evidence linking him to the alleged heroin-trafficking operation.

Background of the case

On 4 January 2003, narcotics officers received information that 7.4 kg of heroin was being transported in a Toyota Qualis parked near Tamil Nadu Hotel on the Madurai–Alagar Koil Road. Officers intercepted the vehicle and recovered seven packets of heroin concealed in a false compartment beneath the front seat.

Several people found in the vehicle were prosecuted and convicted. Mohammed Fasrin, however, was not found in the vehicle and the prosecution’s case against him rested primarily on two alleged confessional statements:

• A statement by a co-accused, Hasan Mohamed (A-2)
• Fasrin’s own statement, recorded after his arrest

The trial court convicted Fasrin for offences including financing illicit trafficking and involvement in drug-related export or import activity. The Madras High Court upheld that decision. He was sentenced to 15 years’ rigorous imprisonment and a fine of Rs. 1,50,000.

What the prosecution alleged

The prosecution alleged that Fasrin was connected to an international heroin-smuggling arrangement. According to the co-accused’s statement, an individual named “Mohammed” from Bombay had arranged the movement of the heroin. The co-accused was allegedly told that the drugs would be transferred through another person, Nalliappan, and eventually handed to Fasrin.

This account did not establish a direct connection between Fasrin and the recovered heroin. The alleged chain depended on statements attributed to people who were not examined during the trial.

Why the Supreme Court overturned the conviction

No direct or corroborative evidence

The Court found that there was virtually no independent evidence showing that Fasrin financed, possessed, transported, imported, exported, or otherwise participated in the narcotics operation.

Neither the alleged Bombay-based Mohammed nor Nalliappan was examined as a witness or made an accused in the case. Their absence left a critical gap in the prosecution’s account of how the heroin was supposedly meant to reach Fasrin.

A co-accused’s confession was insufficient

The Court described a co-accused’s confession as a weak form of evidence that must be supported by independent material. Such a statement may provide investigators with a lead, but it cannot by itself prove another person’s guilt.

Here, the co-accused’s statement was also substantially hearsay: it merely alleged that another person had said the heroin would eventually be handed to Fasrin. The prosecution did not produce evidence to verify that assertion.

Fasrin’s alleged confession required scrutiny and support

Fasrin’s own alleged confession was recorded after he had been arrested. The Court proceeded on the assumption that the statement could be admissible, without deciding the wider legal question concerning confessions recorded under Section 67 of the NDPS Act.

Even on that assumption, the Court held that the prosecution had not shown that the statement was voluntary, free from pressure, and recorded after Fasrin had been informed of his rights. A custodial confession is weak evidence unless supported by reliable corroboration. No such corroboration was available.

The legal significance of the ruling

The decision reinforces that serious NDPS allegations do not lower the prosecution’s burden of proof. Convictions for financing illicit drug trafficking under Section 27A require evidence that the accused directly or indirectly financed prohibited activities, or harboured people involved in them.

The Court’s reasoning highlights three safeguards:

• Confessional statements need careful evaluation, particularly where they are made in custody.
• A co-accused’s statement cannot substitute for independent proof against another accused person.
• Missing links in the prosecution’s narrative matter, especially when key intermediaries are neither examined nor prosecuted.

Outcome

The Supreme Court allowed Fasrin’s appeal, set aside the decisions of the trial court and the Madras High Court, and discharged his bail bonds. The ruling makes clear that suspicion and uncorroborated confessions cannot sustain a conviction where the prosecution fails to establish a credible evidentiary link between the accused and the alleged narcotics offence.

Aadrikaa Legal Services is a trusted legal and regulatory support partner providing end-to-end legal solutions to law firms, corporate organizations, and businesses across India. We specialize in paralegal services, litigation support, tax and regulatory matters, delivering reliable, efficient, and result-oriented legal assistance.

Our services include comprehensive paralegal support, drafting and documentation, legal research, case management, litigation handling, and representation support across various judicial and quasi-judicial forums. We also assist in direct and indirect tax matters, customs, GST, corporate regulatory compliance, and legal advisory.

Source: Supreme Court

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Ravi Shekhar Jha – Advocate, Bar Council of Delhi

Aadrikaa Legal Services (ALS)- Law I Litigation I Arbitration

Date: 27.10.2026

Supreme Court: Being a B.Tech Graduate Does Not Entitle an NDPS Accused to Bail

The Supreme Court of India cancelled the bail granted to Prateek Shukla, holding that the Allahabad High Court had not properly applied the stringent bail standards required under the Narcotic Drugs and Psychotropic Substances Act, 1985 (NDPS Act).

Background of the case

The case arose from an investigation by the Narcotics Control Bureau (NCB) into suspected diversion of acetic anhydride, a controlled substance that can be used in the illicit manufacture of narcotic drugs. In October 2018, the NCB received information that Altruist Chemicals Private Limited had purchased a substantial quantity of acetic anhydride but had not filed the required quarterly returns for two reporting periods.

During searches connected with the company, the NCB alleged that it recovered 896 grams of acetic anhydride and 1.885 kg of amphetamine from the company’s registered premises. Investigators also found documents relating to Griffin International, of which Prateek Shukla and Afghan national Bismillah Khan Ahmadzai were stated to be directors.

The investigation subsequently extended to a godown in Karheda village, Ghaziabad, where the NCB alleged that it recovered 9,650 kg of acetic anhydride along with empty drums. A search of Shukla’s residence allegedly yielded company stamps, banking documents, business papers and other material said to connect multiple entities and co-accused persons.

Allegations and prosecution case

The NCB’s complaint alleged that the accused were part of an international drug syndicate involved in the diversion, storage, sale, purchase and export of the controlled substance. Shukla was arrested on 22 October 2018 and was charged under Sections 8, 9A, 25A, 23 and 29 of the NDPS Act.

The prosecution argued that the material recovered during the investigation established a prima facie connection between Shukla and the alleged conspiracy. It also contended that, given the gravity of NDPS offences, the High Court had granted bail without adequate reasons or proper consideration of the statutory restrictions in Section 37 of the NDPS Act.

Defence raised by the respondent

Shukla maintained that he had resigned as a director of Altruist Chemicals on 4 May 2018, after joining the company earlier that year. He argued that the relevant purchases and deliveries of acetic anhydride took place after his resignation and that he had informed the NCB of his departure from the company on 22 May 2018.

He further contended that he could not be held responsible for the company’s later failure to submit quarterly returns. The High Court accepted his bail plea, observing prima facie that he may not be guilty, while also referring to his clean background and educational qualification.

Why the Supreme Court intervened

The Supreme Court found that the High Court’s reasoning did not demonstrate judicial consideration of the seriousness of the allegations or the legal test governing bail under Section 37 of the NDPS Act. It emphasized that merely noting the parties’ submissions is not enough; a bail order must show a reasoned application of the statutory standards.

The Court specifically criticized the High Court’s reliance on Shukla being educated and holding a Bachelor of Technology degree as a reason to conclude that he was unlikely to commit an offence in the future. It held that this was an extraneous consideration in an NDPS bail decision.

The Supreme Court also noted that the prosecution’s materials showed Shukla as a director of Altruist Chemicals, while his own bail application referred to transferring 99% of his shareholding to Bismillah Khan Ahmadzai. The Court observed that the respondent’s materials appeared to suppress more than they disclosed, though it did not decide the criminal charges at this stage.

Supreme Court’s decision

Allowing the Union of India’s appeal, the Supreme Court set aside the Allahabad High Court’s order dated 7 May 2019. Shukla’s bail was cancelled, and he was directed to surrender immediately.

Legal significance

The ruling underscores that bail in serious NDPS cases cannot rest on general observations about an accused person’s education, background or future conduct. Courts must apply the specific statutory safeguards under Section 37 and give reasons that engage with the allegations, the evidence and the gravity of the offence.

The decision reinforces the Supreme Court’s expectation that bail orders in narcotics cases reflect a careful and legally grounded assessment rather than a cursory evaluation.

Aadrikaa Legal Services is a trusted legal and regulatory support partner providing end-to-end legal solutions to law firms, corporate organizations, and businesses across India. We specialize in paralegal services, litigation support, tax and regulatory matters, delivering reliable, efficient, and result-oriented legal assistance.

Our services include comprehensive paralegal support, drafting and documentation, legal research, case management, litigation handling, and representation support across various judicial and quasi-judicial forums. We also assist in direct and indirect tax matters, customs, GST, corporate regulatory compliance, and legal advisory.

Source: Supreme Court

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Ravi Shekhar Jha – Advocate, Bar Council of Delhi

Aadrikaa Legal Services (ALS)- Law I Litigation I Arbitration

Date: 26.10.2026

Supreme Court: Narcotics Need Not Be Recovered from Accused’s Body to Establish Conscious Possession

The Supreme Court of India upheld Jeet Ram’s conviction for possessing 13 kg of charas under the NDPS Act, while reducing his sentence from 15 years’ rigorous imprisonment to 10 years because of the case’s age and his advanced age.

Background of the case

The case arose from an operation by officers of the Narcotics Control Bureau (NCB), Chandigarh, on 18 June 2001 near the Nangala Devi Temple in Himachal Pradesh. According to the prosecution, NCB officers stopped at a roadside dhaba while travelling from Shimla to Theog. They said they detected the smell of charas and questioned Jeet Ram, who was present at the establishment.

The officers alleged that Jeet Ram became nervous and attempted to flee. A gunny bag found beneath the dhaba counter was searched, and it was found to contain 13 kg of charas. The contraband was divided into two parcels of 6.5 kg each, with samples drawn, sealed and sent for chemical analysis. The chemical analyst confirmed that the samples were charas.

Jeet Ram was prosecuted under Section 20 of the Narcotic Drugs and Psychotropic Substances Act, 1985.

Trial court acquittal and High Court reversal

The Sessions Court in Shimla acquitted Jeet Ram in 2003. It identified several weaknesses in the prosecution’s case, including:

• the absence of independent witnesses;
• doubts over whether the charas was recovered from Jeet Ram’s dhaba or from his conscious possession;
• alleged non-compliance with Section 50 of the NDPS Act;
• concerns about the handling of seals and possible tampering of samples; and
• the perceived improbability of leaving a large quantity of charas in an accessible gunny bag.

The NCB appealed. The Himachal Pradesh High Court reappraised the evidence, overturned the acquittal and convicted Jeet Ram. It imposed 15 years’ rigorous imprisonment, a fine of Rs. 2,00,000, and one additional year of imprisonment in default of payment.

Supreme Court’s findings

The Supreme Court held that the High Court was entitled to review the evidence and reverse the acquittal because the trial court’s conclusions were contrary to the record. It reiterated that an appellate court has broad authority to review, reappreciate and reconsider evidence in an appeal against acquittal.

However, the Court also restated an important safeguard: when two reasonable conclusions are genuinely possible on the evidence, an appellate court should ordinarily not disturb an acquittal. In this case, it found that the trial court’s view was not a reasonably possible one on the evidence presented.

Why the Court accepted the prosecution case

Section 50 did not apply to the bag search. The Court held that Section 50 safeguards apply to a personal search, not to the search of a bag or other object. Therefore, the trial court was wrong to treat the alleged non-compliance with Section 50 as a reason for acquittal.

No adverse inference from lack of independent witnesses. The recovery allegedly occurred around 10:30 p.m. at a dhaba away from the village. The persons present were either linked to Jeet Ram or employed at the dhaba. The Court held that the lack of an independent witness, by itself, did not undermine credible official testimony.

Conscious possession was established. Jeet Ram was present at the counter, where the gunny bag was found. The dhaba stood on land owned by his wife, and there was evidence that he described himself as its owner. The Court concluded that he had physical control over the contraband and knowledge of its presence and character.

Tampering concerns were unsupported. A Judicial Magistrate had signed the samples and bulk parcels on 19 June 2001. The Court also noted that no suggestion of tampering had been put to the relevant NCB witnesses during the proceedings.

The statutory presumption applied. The Court stated that, once possession was established and Jeet Ram did not adequately explain it, the presumption under Section 54 of the NDPS Act operated against him. It also noted that his version in his Section 313 CrPC statement was not supported by the witnesses he referred to or by defence evidence.

Sentence reduced from 15 to 10 years

Although the conviction was maintained, the Court found the original sentence excessive in the particular circumstances. The incident was nearly two decades old by the time of judgment, and Jeet Ram was about 65 years old. He had also claimed to be a priest at the nearby temple.

The Court therefore reduced the custodial sentence to 10 years’ rigorous imprisonment. The fine of Rs. 2,00,000 was retained.

Legal significance

The ruling reinforces two significant principles in criminal appeals and NDPS prosecutions:

1. Appellate courts may reverse an acquittal after a full review of the evidence when the trial court’s findings are unsupported or unreasonable. But they should not interfere merely because a second reasonable view is available.
2. Conscious possession may be inferred from the facts and surrounding circumstances, including control over the premises and proximity to the contraband. A search of a bag is not treated as a personal search requiring Section 50 compliance.

The judgment ultimately confirms that procedural concerns must be assessed against the complete evidentiary record, while sentencing may still be tailored to the individual circumstances of the accused.

Aadrikaa Legal Services is a trusted legal and regulatory support partner providing end-to-end legal solutions to law firms, corporate organizations, and businesses across India. We specialize in paralegal services, litigation support, tax and regulatory matters, delivering reliable, efficient, and result-oriented legal assistance.

Our services include comprehensive paralegal support, drafting and documentation, legal research, case management, litigation handling, and representation support across various judicial and quasi-judicial forums. We also assist in direct and indirect tax matters, customs, GST, corporate regulatory compliance, and legal advisory.

Source: Supreme Court

Disclaimer

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Tel: +91-11-4999 2707

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Ravi Shekhar Jha – Advocate, Bar Council of Delhi