Mehfooz Khan vs. Dri Regional Unit Bhopal

Held

The Court dismissed the bail application. The Court found that the applicant's firm, M/s M K Enterprises, was registered for textiles, hardware, and general merchandise, not hazardous chemicals used in psychotropic substance manufacture. The applicant allegedly misused his GST registration and bank account to procure chemicals for co-accused Raeen Mohammad Ashraf, who lacked such credentials. The Court noted that the applicant received commission and made false GST entries to conceal these transactions, amounting to approximately Rs.61,322/-. The Court found strong, cogent prima facie material establishing a direct and conscious link between the applicant's acts and the ultimate manufacture of narcotic drugs. The Court emphasized that the NDPS Act is a comprehensive legislation combating the entire ecosystem of drug trafficking, not just physical possession. The applicant's knowledge that the articles would be used for manufacturing narcotic drugs was deemed a crucial element. The Court characterized the case as an organized, hierarchical drug trafficking network, with the applicant being a conscious and willing participant. Given the recovery of 61.20 kg of Mephedrone, the Court was not inclined to grant bail. The observations made were limited to the bail application and not an expression of opinion on the merits of the case.

Facts

This is a bail application filed by Mehfooz Khan (the applicant) under Section 483 of BNSS concerning Crime No.33/2025 registered by the Directorate of Revenue Intelligence (DRI), Bhopal, for an offence under Section 8/20 of the NDPS Act. The applicant has been in detention since October 10, 2025. The DRI alleges that the applicant, proprietor of M/s M K Enterprises (GSTIN 27DYLPK4499F1ZT), misused his firm's GST registration and bank account to procure hazardous chemicals (Hydrochloric Acid, Methyl Dichloride, Mono Methyl Amine, and Acetone) for the illicit manufacture of Mephedrone, at the behest of co-accused Raeen Mohammad Ashraf. The applicant allegedly received commission for these transactions and made false GST entries amounting to approximately Rs.61,322/- to conceal these illegal activities. The DRI recovered 61.20 kg of Mephedrone. Initial lab reports did not find Mephedrone, but a subsequent report from NFSU, Gandhinagar, confirmed its presence.

Key Issues

1. Whether the applicant is entitled to regular bail under Section 483 of BNSS, considering his alleged involvement in a criminal conspiracy for manufacturing and trafficking narcotic drugs under the NDPS Act? Petitioner's Arguments: The applicant claims innocence and false implication, stating he merely placed orders for chemicals not prohibited at the time, at the request of Ashraf. He asserts that the DRI did not collect his sales bills and that he did not conceal anything in his GST returns. He also questions the reliability of the NFSU report due to alleged lack of jurisdiction and notes the absence of Mephedrone in the initial CRCL report. He highlights his lack of criminal record and the time likely to be taken for trial. Respondent's (DRI) Arguments: The DRI contends that the applicant deliberately misused his firm's GST registration and bank account to procure chemicals known for Mephedrone manufacture for co-accused Ashraf, who lacked a valid GST registration. The applicant allegedly received commission and made false GST entries to conceal the transactions. The DRI emphasizes the applicant's awareness of the chemicals' intended use for Mephedrone manufacture and his active participation in the supply chain, which was crucial for the illicit operation. The recovery of commercial quantity of Mephedrone from co-accused establishes a direct nexus.