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10. The importers M/s. Sargam Enterprises had submitted the Bill of Lading No. MAA 23842/94, dated 12-12-94, covering subject consignment, raised by M/s. Regional Container Lines, Singapore. The delivery agent is M/s. Forbes Campbel and Co. Ltd., Gimpex House, II Floor, 181, Linghi Chetty Street, Madras-1. The original Bill of Lading was endorsed by "Shri S. Somasundaram", Proprietor on record of M/s. Sargam Enterprises and handed over to M/s. Madras International Shipping & Clearing Agency, the Custom House Agent. This original Bill of Lading was available with the Custom House Agent along with the endorsements of the Custom House Agent also, on the reverse of the Bill of Lading, however this was not handed over to the Steamer Agents. The said Bill of Lading was collected from the Custom House Agent. Enquiries made with the Custom House Agent revealed that on earlier occasions also Shri S. Somasundaram, Proprietor on record of M/s. Sargam Enterprises had endorsed the Bill of Lading and M/s. Madras International Shipping & Clearing Agency, Madras used to effect clearances on this basis. Further, it was found that in the instant case the Custom House Agent has prepared a bond to be submitted to the steamer agent for destuffing the cargo at 83, SIDCO Industrial Estate, Ambattur, Madras- 88.

34. Enquiries with Shri D. Kannan of M/s. Madras International Shipping & Clearing Agency, Custom House Agent revealed that the documents relating to the clearance of goods imported by all the five firms including M/s. Sargam Enterprises were used to be handed over by Shri Sanghvi, but he failed to disclose the address of Shri Kamlesh M. Sanghvi. According to Custom House Agent Shri Sanghvi used to handover the documents and duty amount after assessment. The Custom House Agent has identified Shri Kamlesh M. Sanghvi as representative of above firm owned by S/Shri Rai-chand G. Mardia and Ishwarlal C. Surana. Even Shri Kamlesh M. Sanghvi who was identified by the Custom House Agent as the representative could not be traced by the Department despite several efforts made in this regard. As the result of investigation and enquiries with several persons the address of Shri Kamlesh M. Sanghvi was found. However he is still absconding. It is pertinent to point out here that the Custom House Agent, has full knowledge of the real importers, their names and their representative, the names of the firms and he was in a position to identify Shri Kamlesh M. Sanghvi as a representative and S/Shri Ishwarlal C. Surana and Raichand G. Mardia as owners. Further, earlier cleared consignments were allowed to be destuffed at No. 83, SIDCO, Ambattur, Madras, an address no way related to any of the addresses of the five firms. However, the Custom House Agent went on accepting the import documents which are signed in the name of "Shri S. Somasundaram", whom he never knew and never met. Further he could never identify anyone by the above name in the group of persons associated or otherwise related to any of the five firms including M/s. Sargam Enterprises. It is also a fact that the import documents of M/s. Sargam Enterprises were received and Bill of Entry filed in the name of the said firm even in the absence of valid IE Code No. Further, the Custom House Agent actively assisted S/Shri Ishwarlal C. Surana and Raichand G. Mardia, Kamlesh M. Sanghvi by filing Bills of Entry in the name of non-existent and fictitious firms to facilitate smuggling of the bearings. Thus, the Customs House Agent deliberately, wilfully and with full knowledge of the facts, filed the instant Bill of Entry also and actively colluded in the act of smuggling of bearings worth Rs. 1,194 crores in the guise of and along with Gambier. By the above detailed acts of omission and commission in the smuggling of bearings, the Custom House Agent has rendered the subject goods liable to confiscation under the different provisions of Section 111 of the Customs Act, 1962.

(xiii) M/s. Madras International Shipping and Clearing Agency, Madras, the Custom House Agent (R-215) with Shri D. Kannan, sole Proprietor, as acted as agents for M/s. Sargam Enterprises, Madras, a non-existent and fictitious firm a filed the subject Bill of Entry with IE Code Number which has already been cancelled. Shri D. Kannan, Proprietor of the Custom House Agent has knowledge of the representative, Shri Kamlesh M. Sanghvi, and the real owners, S/Shri Ishwarlal C. Surana and Raichand G. Mardia, of the subject consignment. Though he knew that the documents covering the subject goods belong to M/s. Sargam Enterprises, a fictitious firm, still he accepted the documents. By the detailed acts of omission and commission as referred to in Para 34, the Custom House Agent, M/s. Madras International Shipping and Clearing Agency, with its sole Proprietor, Shri D. Kannan, rendered the goods liable to confiscation under different sections as already referred to in previous paragraphs and the Customs House Agent, as a firm rendered itself liable to penalty under Section 112(a) of the Customs Act, 1962.

"40.19 The Custom House Agent states that its proprietor, D. Kannan's mother died on 13-12-1994 and he was mentally very upset and the 13th day's obsequies was to be held on 25-12-1994. After the function was over on 25-12-1994, D. Kannan's father-in-law died in the midnight on 25/26 December, 1994. It need not be emphasised that D. Kannan was further very greatly upset and was not in the normal frame of mind. He received numerous calls on 26-12-1994 to appear before the Customs Authorities. Kannan's father-in-law died at No. 29 Thanthai Periyar Nagar, Ayanavaram, Madras-600 023. Kannan informed the Customs Authorities about his inability to appear due to the reasons stated above and the dead body was kept for cremation. Under those circumstances D. Kannan was threatened, coerced, intimidated on 27-12-1994 and 28-12-1994 by various officials of the Customs Department up to 2.00 am to give statements. He was also once again directed to appear before the Customs Authorities by 9.45 am on 28-12-1994. Taking advantage of these circumstances the Customs Officers further threatened, intimidated and coerced Kannan to give further statements on 4-1-1995 and 6-1-1995. These statements and subsequent statements given by Kannan on 23-3-1995, 25-4-1995 were obtained by threat, harassment, intimidation and coercion whenever the Special Intelligence and Investigation Branch had some false or misleading information to corroborate or implicate people in accordance with the false and misleading information. The Custom House Agent states that none of the above statements are voluntary. The Custom House Agent states that Mr. K. Yuvaraj, nephew of D. Kannan, who works in the Custom House Agent's office, was also subjected to threat, coercion and intimidation on 28-12-1994 and 26-4-1995 to give the statements the way the Special Intelligence and Investigation Branch wanted. The said statements are not voluntary. The Custom House Agent states that in any event these statements are not binding on the Custom House Agent."