Court notes serious dispute over property possession following SARFAESI sale; directs bail with strict conditions including cooperation with investigation and movement restrictions
In a significant decision on September 22, 2026, the Kerala High Court, presided over by Justice Dr. Kauser Edappagath, granted regular bail to Anto Augustine, accused in a contraband liquor seizure case under the Kerala Abkari Act. The case arose from the recovery of large quantities of foreign-made liquor and alcohol from a building allegedly owned by Augustine in Wayanad district.
The accused was apprehended following a search conducted by the Excise Circle Inspector’s team on September 16, 2026, at a property known as "Moongananiyil Veedu" in Muttil Grama Panchayat, where 43.850 litres of foreign liquor, among other alcoholic substances, were seized. Augustine faced charges under Sections 55(a), 55(i), and 58 of the Kerala Abkari Act, 1 of 1077, which pertain to illegal possession and sale of liquor.
A critical aspect of the case was the ownership and possession of the building from which the contraband was seized. Augustine contended that the property had been mortgaged and subsequently sold under SARFAESI Act proceedings in 2022 due to a bank loan default, thereby negating his possession claims. He submitted documentary evidence to support this claim. However, the prosecution argued that revenue records, including land revenue receipts and certifications from the Village Officer, as well as utility connections and electoral rolls, continued to list Augustine as the owner and occupant, creating a serious dispute over possession.
Despite Augustine’s criminal antecedents, the court noted that he had not been involved in any other offences of a similar nature. The recovery of contraband had already been effected, and the accused had undergone police custody, including a 24-hour police remand. Considering these factors, the court found no justifiable reason to continue his detention and held that Augustine was entitled to regular bail.
The bail was granted subject to stringent conditions aimed at safeguarding the investigation and ensuring compliance: Augustine must execute a bond of Rs. 1,00,000 with two solvent sureties, cooperate fully with the investigation, appear before the investigating officer every Saturday and as required, abstain from committing similar offences, refrain from tampering with evidence or influencing witnesses, and not leave Kerala without the trial court’s permission.
This decision underscores the importance of balancing the rights of the accused against the interests of justice, especially where factual disputes regarding ownership and possession exist. It also highlights the court’s cautious approach in granting bail with conditions that preserve the integrity of the ongoing investigation.
Bottom Line:
Bail - Abkari Act - Where contraband was seized from a building allegedly owned by accused, but there was serious dispute regarding his ownership, possession and occupation of premises due to prior SARFAESI sale - Recovery already effected and police custody completed - Continued detention held unnecessary - Regular bail granted with conditions.
Statutory provision(s):
Bharatiya Nagarik Suraksha Sanhita, 2023 Section 483, Kerala Abkari Act, 1 of 1077 Sections 55(a), 55(i), 58
Anto Augustine v. State of Kerala, (Kerala) : Law Finder Doc Id # 2983462
