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Issues: Whether the accused was entitled to bail under the proviso to Section 43D(5) of the Unlawful Activities (Prevention) Act, 1967, and whether the High Court erred in excluding material and assessing admissibility at the bail stage.
Analysis: The governing test under the special bail provision is whether, on a perusal of the case diary and the report under Section 173 of the Code of Criminal Procedure, 1973, there are reasonable grounds for believing that the accusation is prima facie true. At that stage, the court is not required to conduct a detailed trial, but it must consider the totality of the material collected during investigation, including accompanying documents and witness statements, and form an opinion on broad probabilities. The question of admissibility, credibility, or final evidentiary worth of the material is for trial, not for bail. The High Court erred in discarding the material relied upon by the investigating agency, including the statements of witnesses and the documentary record, and in treating the matter as if the evidence had to be proved conclusively before bail could be refused.
Conclusion: The material on record furnished reasonable grounds to believe that the accusations were prima facie true, so the statutory bar against bail operated and the accused was not entitled to bail.
Final Conclusion: The bail order of the High Court could not be sustained, and the refusal of bail by the Designated Court stood restored.
Ratio Decidendi: In cases governed by Section 43D(5) of the Unlawful Activities (Prevention) Act, 1967, bail must be refused where the court, on the totality of the investigative material, finds reasonable grounds to believe the accusation is prima facie true, and questions of admissibility or evidentiary sufficiency are left to trial.