Anti-terror law can support extended investigation and deny statutory bail despite no prior unlawful-association declaration.
Anti-terror legislation may still apply, and the investigation period may be extended, even if an organisation has not yet been formally declared unlawful at the time of arrest. The absence of such notification does not by itself exclude alleged terrorist activity or the accused's knowledge of it. The Supreme Court treated the special statutory scheme as sufficient to uphold the Special Court's jurisdiction to extend investigation time and reject statutory bail. It also regarded recovery of cash from the accused as a circumstance warranting further investigation, with the available material insufficient to justify interference or bail at that stage.
Issues: (i) whether the provisions of the Unlawful Activities (Prevention) Act, 1967 applied so as to justify extension of the period for completion of investigation and deny statutory bail; (ii) whether the recovery of money from the petitioner required further investigation and supported refusal of bail.
Issue (i): whether the provisions of the Unlawful Activities (Prevention) Act, 1967 applied so as to justify extension of the period for completion of investigation and deny statutory bail.
Analysis: The asserted ground that the organisation had not yet been declared an unlawful association was rejected. The Court held that the absence of such notification at the time of arrest did not mean that the organisation could not have indulged in terrorist acts or that the petitioner could not have had knowledge of such activities. On that basis, the statutory provisions relating to terrorist acts and unlawful activity were held applicable, and the Special Court was found to have jurisdiction to extend the time for completion of investigation.
Conclusion: The claim to statutory bail was rejected and the extension of the investigation period was upheld.
Issue (ii): whether the recovery of money from the petitioner required further investigation and supported refusal of bail.
Analysis: The recovery of Rs. 4 lakhs from the petitioner was treated as a matter requiring further investigation into the allegations against him and the other accused persons. The material was held insufficient to warrant interference at that stage.
Conclusion: Bail was refused on this ground as well.
Final Conclusion: The petitions were not entertained, and the refusal of bail and the order extending investigation were left undisturbed.
Ratio Decidendi: Mere absence of a prior declaration of an organisation as an unlawful association does not exclude the application of anti-terror legislation where the alleged activities disclose terrorist conduct and justify extension of the investigation period under the special statutory scheme.
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