Release of detained rough diamonds permitted where no material linked the importer to unlawful activity despite pending investigation

Detained consignments of rough diamonds that had arrived in India but were not covered by Bills of Entry were directed to be released and allowed to be re-exported or re-shipped in accordance with law. Continued detention was not justified where no cogent material linked the petitioner to unlawful activity, and pendency of investigation alone was insufficient to withhold the goods indefinitely. The authorities were left free to continue the investigation, but the detention itself was not sustained.

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Issues: Whether the detained consignments of rough diamonds, which had reached India but had not been covered by Bills of Entry, could be ordered to be released and permitted to be re-exported while the investigation continued.

Analysis: The goods had remained under detention for some time, but no cogent material had been placed on record to link the petitioner with any unlawful activity. The authorities were unable to justify the continued detention on the basis of any valid legal authority, and the pendency of investigation by itself was not treated as sufficient to withhold the goods indefinitely. At the same time, the order preserved the liberty of the authorities to continue their investigation.

Conclusion: The detention was not sustained, and the goods were directed to be released with permission for re-export or re-shipment in accordance with law.

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