CUTTACK: The Odisha High Court has modified the conditions laid down by a Special Court under the Narcotic Drugs and Psychotropic Substances (NDPS) Act for the release of MV Debi, a cargo ship detained at the Paradip Port since December 1, 2023 when cocaine worth Rs 220 crore was seized from it.
Justice AK Mohapatra has waived the Rs 10 crore bank guarantee imposed by the Additional District & Sessions Judge-cum-NDPS Court at Kujang in Jagatsinghpur district. Modifying another condition Justice Mohapatra has also reduced the Rs 100 crore indemnity bond amount to Rs 75 crore.
The NDPS court had on February 12 laid down the conditions while hearing the case of the seizure of 22 packets of cocaine weighing 22.22 kg from the ship at Paradip International Cargo Terminal (PICT) berth. Asian Pacific Shipping Company, the Vietnam-based owner of MV Debi, had in a petition challenged the conditions imposed by the trial court and sought direction for interim release of the vessel which was seized by the Indian authorities for commission of a crime punishable under the NDPS Act.
In the judgment delivered on March 7, Justice Mohapatra said, “This court finds that the condition with regard to furnishing a bank guarantee would be harsh so far as the petitioner-shipping company is concerned since they are not having any bank account in India. Therefore, the condition requires reconsideration by this court. Accordingly, the condition is hereby waived.”
Justice Mohapatra further said that a reasonable approach is required on the question of indemnity bond in the present case as the real value of the vessel has not yet been assessed by any certified valuer, but basing upon the insurance declaration, the value of the vessel has been arrived at Rs 100 crores.
“Accordingly, the condition is modified to the extent that instead of Rs 100 crores, the petitioner-shipping company shall now furnish an indemnity bond to the tune of Rs 75 crores and instead of one solvent surety for the like amount, they shall furnish two solvent sureties for the like amount,” Justice Mohapatra said.
However, Justice Mohapatra held that the trial court had not committed any illegality in setting the conditions in the February 12, 2024 order.
In the petition, the company had stated that as a result of the seizure of MV Debi, the vessel has been continuously berthed for more than one year at PICT, causing immense financial losses to the tune of Rs 40 crore. Thus, a condition for release like bank guarantee would cause severe financial hardship to the company.