NEW DELHI: Observing that security of the nation economic or otherwise is paramount compared to any business house, the Karnataka High Court has rejected a plea by an RFID e-seal supplier for quashing the FIR filed against it for tampering with the e-seals leading to security breaches.
Justice M Nagaprasanna declined to interfere with the ongoing investigations in the FIR lodged on July 16, 2019 against Bengaluru-based M/s ib Track Solutions Private Limited and its director Sudhendra Dhakanikote.
"I do not find any merit to interfere or interdict the investigation, against the petitioners, as any interference would amount to putting a premium on the acts of the petitioners, for having compromised the security of the nation, which act sans countenance," the judge said.
It was alleged that containers using e-seals supplied by the accused company was passing customs clearance without a lock. The e-seals could be scanned from a closer distance without being in a locked condition.
It was also alleged that e-seals were tampered with regularly. The companys emails indicated that they switched off tampering alerts, resulting in containers with tampered seals also getting exported.
The investigators claimed the company intentionally submitted reports, having serious ramifications on the economy and security of the nation.
In its plea, it was contended that it is the company, not its director, who could be held responsible.
The petitioners submitted that that the High Court's co-ordinate bench had already quashed the proceedings against the companys managing director.
If all the members of the board directors, managing director, and every other member were aware of the deliberate switching off of tampering signals, it cannot be said that the company alone is responsible. The directors or the managing director, as the case would be, were also responsible for their acts and the entire board was aware of what has happened, the court said.
The court also noted that such containers passing muster without getting scanned through the customs can result in a catastrophic effect to the security of the nation. Security could be economic, defence or even narcotic. What passes through the container, if not detected, can definitely pose a serious threat to any of these.
The answers given by the second petitioner (director of the company) would shock the conscience of the court, as what he says that they did it in their business interest. Such business houses generating vested interest of business cannot be permitted to sacrifice the interest of the nation, the court further said.
The bench also pointed out the issue in the lis is shrouded with admissions and certain seriously disputed questions of fact, which will have to be thrashed out only in a full blown proceeding.
"It is rather surprising as to why the DRI has not proceeded further and filed its final report is a serious
matter of the kind. It is for the DRI to conclude the investigation, if not already concluded and take the proceeding to its logical end," the bench said.
