Mumbai Court Grants Bail in Italian Furniture Customs Duty Evasion Case
The Mumbai Court has granted bail in the Italian furniture customs duty evasion case where the applicant was allegedly involved in the activity of misdeclaration and under valuation of imported furniture.
The bench of S.K. Fokmare (Additional Chief Judicial Magistrate) observed that the Directorate of Revenue Intelligence (DRI) had had sufficient opportunity to interrogate the accused over the past 14 days. The DRI had remanded the accused into custody on two occasions. The DRI officers have already taken all the documents, including email IDs, books of accounts, and phones, into their custody. The applicant stated that all the electronic data available on office devices had been recovered by the DRI. Additionally, the applicant has deposited an amount of Rs. 5 crores as customs duty to the department.
The applicant, Mr. Falgun Yogendra Shroff, is a partner in Dilusso Furniture LLP and Di Lusso, which operate under the common brand name “Source Unlimited.” He has been in active business for decades and has deep roots in society, with no criminal antecedents. The applicant claimed that the allegations of evading Rs. 30 crores in customs duty are false and prayed for bail.
The DRI resisted the application for bail, contending that the applicant is involved in a serious economic offense that adversely affects the country's economy. The case has international ramifications, and granting bail at this stage could hamper the investigation. Some members of the syndicate are still at large, and releasing the applicant on bail might impede further investigation. The DRI thus requested the court to reject the bail application.
Dr. Sujay Kantawala, the counsel for the applicant, argued that the allegations against the accused are based on documentary evidence, which the DRI has already collected. The DRI has conducted raids at the office, godown, and residence of the applicant, copying all data available on the server and office devices. The DRI has also interrogated the applicant while in custody, and the applicant has fully cooperated. To show his good faith, the applicant has deposited Rs. 5 crores and is willing to deposit additional amounts, though his bank accounts have been provisionally attached and frozen by the DRI.
The court granted bail to Mr. Falgun Yogendra Shroff on his executing a Personal Recognizance (P.R.) Bond of Rs. 2,00,000 with one or more sureties in the same amount. The accused was provisionally released on furnishing cash bail of Rs. 2,00,000 in lieu of surety for two months.
The court directed the applicant not to influence or tamper with prosecution witnesses or evidence. He is required to cooperate with further investigation and be present when called by the respondent, with written intimation, until the investigation is completed or further order. He must surrender his passport to the respondent for six months from the date of his arrest and can retrieve it after the period with due acknowledgment. He must obtain prior permission from the court to travel abroad.
The court also directed the applicant to provide his residential address with proof, email, and telephone/mobile number to the court and department. He must not change these addresses or contact numbers without prior written intimation to the court and department. He must also provide the addresses and mobile numbers of two of his nearest relatives with their consent, along with address proof, for contacting them if he fails to appear during further investigation or trial.
