Facts of the Case

  • Petitioners (Shah-E-Naaz Judge, Sandeep Kohli, Sahyr Kohli) challenged notices under Section 153A and search warrants under Section 132.
  • The search originated from proceedings against Karamjit Singh Jaiswal, a relative of the petitioner.
  • During search of his premises, a locker key belonging to petitioners was found.
  • Based on this, warrants were issued to search three lockers held jointly by petitioners.
  • Two lockers were empty; one contained jewellery valued at approx. ₹49 lakhs.
  • Petitioners had no business or financial link with the searched person (Jaiswal).

Issues Involved

  1. Whether search warrants under Section 132 were valid without proper “reason to believe”.
  2. Whether mere discovery of a locker key justifies search of lockers.
  3. Whether consequential search under Section 132(1A) requires “reason to believe” or only “reason to suspect”.
  4. Whether proceedings under Section 153A based on such search are sustainable.

Petitioner’s Arguments

  • No nexus between petitioners and the searched person (Jaiswal).
  • Search warrants were issued without any material evidence or information.
  • Satisfaction note was vague and based on assumptions (“may contain valuables”).
  • Mandatory requirement of “reason to believe” under Section 132 not satisfied.
  • Search was a fishing and roving enquiry, violating legal safeguards.

Respondent’s Arguments

  • Discovery of locker key justified issuance of search warrants.
  • Warrants were issued under Section 132(1)(i) based on “reason to suspect”.
  • Search was conducted on lockers (place), not directly on petitioners.
  • Once search is valid, issuance of notice under Section 153A is mandatory.

Court Findings / Order

  • The Court held that:
    • Satisfaction note was defective and lacked material evidence.
    • Use of words like “may contain valuables” shows absence of concrete information.
    • No effort was made to verify ownership, usage, or connection of lockers.
    • No link established between petitioners and alleged undisclosed income.
    • Mandatory statutory requirement under Section 132 was not fulfilled.
  • Key Observation:
    Search cannot be based on mere suspicion or conjecture; it must be backed by credible information and reason to believe.
  • Final Outcome:
    • Search warrants declared invalid and illegal
    • Proceedings under Section 153A quashed

Important Clarifications by Court

  • “Reason to believe” is mandatory for search under Section 132.
  • “Reason to suspect” cannot substitute statutory safeguards.
  • Search powers cannot be exercised casually or mechanically.
  • Right to privacy cannot be violated on mere assumptions.
  • Satisfaction note must show:
    • Application of mind
    • Tangible material
    • Nexus with undisclosed income

Link to download the order -https://delhihighcourt.nic.in/app/case_number_pdf/2018:DHC:7568-DB/SKN30112018CW59372016.pdf

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