Court modifies interim order allowing proceedings under FEMA and PMLA to continue for Customs Act offences

The Court allowed the Criminal Miscellaneous Petition filed by the Union of India, seeking modification of an interim order in a writ petition related to the bailability of an offence under Section 135 of the Customs Act, 1962. The interim order for stay of arrest was vacated, permitting proceedings under the Foreign Exchange Management Act, 1999, and the Prevention of Money Laundering Act, 2002, to continue. The Court clarified that the bailability issue was specific to Customs Act offences only, leading to the modification of the interim order.

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Issues:
1. Modification/vacation of interim order in a writ petition regarding the bailability of an offence under Section 135 of the Customs Act, 1962.
2. Clarification on the subject matter of a writ petition involving investigation under the Foreign Exchange Management Act, 1999, and the Prevention of Money Laundering Act, 2002.
3. Decision on the interim order for stay of arrest in connection with a specific file.

Analysis:
1. The judgment pertains to a Criminal Miscellaneous Petition filed by the Union of India seeking modification/vacation of an interim order passed in a writ petition regarding the bailability of an offence under Section 135 of the Customs Act, 1962. The writ petition also referenced investigations under the Foreign Exchange Management Act, 1999, and the Prevention of Money Laundering Act, 2002. The main prayer was for a writ of mandamus to declare the offence under Section 135(1) of the Customs Act as bailable. The Court noted that a previous decision had held offences under the Customs Act to be bailable. The petition was allowed, and the interim order for stay of arrest was vacated, allowing proceedings under the other Acts to continue as per law.

2. Initially, the writ petition was believed to be confined to offences under the Customs Act alone. However, it was later clarified that the subject matter of the petition also involved investigations under the Foreign Exchange Management Act, 1999, and the Prevention of Money Laundering Act, 2002. The Court had stayed the arrest presuming the matter related to Customs Act offences. Upon realizing the actual nature of the case, the Court vacated the interim order, as the question of bailability was specific to Customs Act offences only. The respondents were permitted to proceed with the investigations under the other Acts.

3. Another writ petition was mentioned where the petitioner sought time to file a rejoinder affidavit. The Court adjourned the matter for four weeks to allow the filing of the affidavit, with a directive to provide a copy to the respondents in advance of the next hearing date. This procedural aspect was separate from the main issue discussed in the judgment, focusing on the modification/vacation of the interim order in the original writ petition.

This detailed analysis outlines the key aspects of the judgment, addressing the issues raised and the Court's decisions regarding the modification/vacation of the interim order and the clarification on the subject matter of the writ petition.

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