Patna High Court

Sarfaraz @ Muzaffar Ahmad WaniversusThe Union of India through National Investigation Agency

Decided: 24 February 2026
Disposal: DISMISSED
Bench: RAJEEV RANJAN PRASAD PRAVEEN KUMAR

Holding

The High Court held that the appeal is without merit and dismissed it, thereby upholding the trial court’s denial of bail.

Summary

The appellant, Sarfaraz @ Muzaffar Ahmad Wani, appealed against the Special Judge's order denying bail in a case involving alleged counterfeit Indian currency and terrorism offences under the UAPA. The prosecution relied on a police self‑statement, seizure of fake notes, digital cryptocurrency transactions, and intercepted communications linking the appellant to the procurement and movement of counterfeit notes from Nepal to Jammu & Kashmir. The appellant argued that procedural lapses – such as the seizure list being prepared before the FIR, non‑recording of the search, failure to send seized notes to the forensic lab within 48 hours, and the absence of written grounds of arrest – vitiated the case and violated his Article 21 rights, citing the Supreme Court’s decision in Sheikh Javed Iqbal. The respondent contended that under Section 43D(5) of the UAPA, bail cannot be granted when there are reasonable grounds to believe the accusation is prima facie true, and that the procedural defects do not defeat the evidence. The Court examined the material, found prima facie evidence of the appellant’s involvement, and held that the procedural objections were not sufficient to merit bail. Consequently, the appeal was dismissed, and the trial court’s order denying bail was upheld.

Issues considered

The applicability of Section 43D(5) of the UAPA in denying bail when prima facie evidence exists.
Whether procedural irregularities in seizure, search recording, and delay in forensic analysis invalidate the prosecution's case.
Whether the failure to provide written grounds of arrest infringes the appellant's constitutional rights under Article 21.
Whether the Supreme Court precedent in Sheikh Javed Iqbal is applicable to the present facts for bail relief.

Legislation cited

Bhartiya Nyay Sanhita — s. 105, 3/5
Indian Penal Code — s. 111, 178, 179, 180, 181, 317(5), 318(4), 336(3), 338, 340(2), 3/5, 61(2)
Unlawful Activities (Prevention) Act, 1967 — s. 15, 43D(5), 43D(6)

Subjects

bail
UAPA
counterfeit currency
procedural violation
Article 21
prima facie evidence
NIA
high court

Judgment

IN THE HIGH COURT OF JUDICATURE AT PATNA
CRIMINAL APPEAL (DB) No.1478 of 2025
Arising Out of PS. Case No.-17 Year-2024 Thana- NIA District- Patna
======================================================
Sarfaraz @ Muzaffar Ahmad Wani, Son of Gul Mohammad Wani, Resident of
- Dahmal, P.S.- Dist.- Anantnag, J and K
... ... Appellant/s
Versus
The Union of India through National Investigation Agency
... ... Respondent/s
======================================================
Appearance :
For the Appellant/s : Mr.Kundan Kumar Ojha, Advocate
Ms. Sadhna Parasher, Advocate
Mr. Navneet Prabhakar, Advocate
For the Respondent/s : Mr.Dr. Krishna Nandan Singh, Sr. Adv. (ASG)
Mr. Arvind Kumar, Spl. P.P., NIA
Mr. Shivaditya Dhari Sinha, Advocate
Mr. Paritosh Parimal, Advocate
Mr. Aayushman, AC to ASG
======================================================
CORAM: HONOURABLE MR. JUSTICE RAJEEV RANJAN PRASAD
and
HONOURABLE MR. JUSTICE PRAVEEN KUMAR
ORAL ORDER

(Per: HONOURABLE MR. JUSTICE RAJEEV RANJAN PRASAD)

6 24-02-2026 Heard learned counsel for the appellant and

learned A.S.G. assisted by Mr. Arvind Kumar, learned

counsel for the N.I.A.

2. The sole appellant in this case is seeking setting

aside of the order dated 15.07.2025 passed by the learned

Special Judge, NIA Court, Bihar, Patna in Special Case

No.10 of 2024/R.C. No.17 of 2024/NIA/DLI arising out of

Banjariya P.S. Case No.229 of 2024 registered for the

offences punishable under Sections 317(5), 318(4), 61(2),

338, 336(3), 340(2), 111, 178, 179, 180, 181 and 3/5 of the
Patna High Court CR. APP (DB) No.1478 of 2025(6) dt.24-02-2026
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Bhartiya Nyay Sanhita and Sections 16, 18 and 20 of the

Unlawful Activities (Prevention) Act, 1967. By the

impugned order, the learned court has been pleased to reject

the prayer of the appellant for grant of bail.

3. The prosecution case is based on the self-

statement of ASI Indrajeet Paswan recorded on 05.09.2024

at 18.15 hrs at NH-28A near Kharwa Pool, Banjaria,

District-East Champaran, Motihari. In his self-statement,

the informant has stated that on 05.09.2024 at about 17:30

Hours in the evening, he along with other police personnels

proceeded for patrolling and vehicle checking. When they

reached near Shankar Dhaba, they got secret information

that that from Jhakiya village three persons on one without

number plate red coloured motorcycle are coming towards

Khandwa Pool. One of the three persons have beard who

was wearing blue colour T-shirt and black coloured pant

and was carrying black coloured backpack in front of his

stomach as also he is the person who was driving the

motorcycle. Second person was wearing Khaki coloured

Fullshirt and Blue coloured Jeans pant and third person was

wearing white coloured T-shirt with lining and Black
Patna High Court CR. APP (DB) No.1478 of 2025(6) dt.24-02-2026
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coloured Jeans Pant. All of them was carrying fake Indian

notes. On this information, the informant has informed the

senior officials and with the Shashtra Bal personnels, they

proceeded towards Khandwa Pool where they found one red

motorcycle with above description and three persons on it

was coming. On seeing police personnel, they tried to flee

away, but police personnel chased them and nabbed all

three persons. Seeing this action of the police, nearby

people gathered there. Thereafter, police asked their names.

They told their names as (1) Md. Nazar Saddam, (2) Md.

Waris and (3) Md. Jakir Hussain. The informant requested

the people who have assembled there to become witness to

the production-cum-seizure list to which all of them refused

by saying that these accused persons are outsiders, if we

become witness, anything bad can happen to us. Thereafter,

two of the raiding team members, namely, Sukhram Bharti

and Aditya Kumar were made witnesses to the production-

cum-seizure list. Police asked for papers of the motorcycle

from Md. Nazar Saddam but he could not produce any

papers. The Engine number and chasis number of the

motorcycle was worn out. It seems that the motorcycle was
Patna High Court CR. APP (DB) No.1478 of 2025(6) dt.24-02-2026
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stolen one. On search of black coloured backpack, some

clothes and hundred notes of 500 Rupees (total 50,000/-)

two Aadhar Cards of Md. Nazar Saddam of different

addresses was found. On search of his pant, hundred notes

of 500 Rupees (total 50,000/-) was found. On search of Md.

Waris, from his pant’s pocket, eighty notes of Rs. 500/- and

from his shirt’s pocket twenty notes of Rs. 500/- (total Rs.

50,000/-) was found. And on search of Md. Jakir Hussain,

sixty notes or Rs.500/- from his pant’s pocket and thirty

notes of Rs.500/- from his shirt’s pocket (total 45,000/-)

was found. Altogether from all the three persons, three

hundred ninety (390) fake notes total of Rs.1,95,000/- was

found. On further interrogation, they disclosed that they

used to carry these fake Indian currency from Pakistan via

Nepal through one Rajesh Sahni. They used to transport

these fake notes via Delhi to Sarfaraj @ Muzaffar Ahamd

resident of Jammu Kashmir. They disclosed that they have

done this many times earlier also. In the presence of two

witnesses named above, seizure list was prepared, on these

three accused persons have put their signature. The

informant alleged that from the above facts, it is clear that
Patna High Court CR. APP (DB) No.1478 of 2025(6) dt.24-02-2026
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these three accused persons in conspiracy with other named

accused persons was trying to use fake Indian notes in the

market.

4. For purpose of bail, learned counsel for the

appellant has submitted firstly that in this case the seizure

list has been prepared at 5.15 PM, on the seizure list P.S.

case is mentioned, but it could not have been possible at the

time of preparation of the seizure list considering that the

FIR was lodged only at 6.45 PM. Learned counsel further

submits that the mandatory provision of Section 105 of

Bhartiya Nagrik Suraksha Sanhita (in short ‘BNSS’) has not

been followed. It is his submission that the video recording

of the search procedure was necessary which has not been

done and, therefore, it would create huge doubt over the

prosecution story.

5. Learned counsel submits that at the time of

arrest of this appellant he was not served with written

grounds which is mandatory, therefore, non-compliance

with the mandate to provide the written grounds for arrest,

the very arrest of the appellant would be illegal.

6. Learned counsel for the appellant has also
Patna High Court CR. APP (DB) No.1478 of 2025(6) dt.24-02-2026
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pointed out by referring to the Investigation of High Quality

Counterfeit Indian Currency Offences Rules, 2013 ( in short

‘Rules of 2013’) that in this case as against the mandate of

sub-rule (2) of Rule 6 the seized currency were sent to the

FSL, Patna after 21 days. Sub-rule (2) of Rule 6 mandates

that the Investigation Officers shall forward the seized

currency by the quickest means to the notified forensic

authority, not later than forty-eight hours of the seizure, and

the notified forensic authority shall communicate the results

of the examination to the requisitioning officer by the

quickest possible means including e-mail or facsimile.

7. Learned counsel has relied upon the judgment

of the Hon’ble Supreme Court in the case of Sheikh Javed

Iqbal @ Ashfaq Ansari @ Javed Ansari Vs. State of

Uttar Pradesh reported in 2024 INSC 534, to submit that

this Court in exercise of its constitutional power may hold

that the continuous incarceration of the appellant would be

in the breach of Article 21 of the Constitution of India. On

these grounds, prayer for bail of the appellant has been

made.

8. On the other hand, learned ASG submits that in
Patna High Court CR. APP (DB) No.1478 of 2025(6) dt.24-02-2026
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this case the appellant is facing charge inter-alia under

Section 15 of the Unlawful Activities (Prevention) Act,

1967 (in short ‘UAPA’. The attention of this Court has been

drawn towards Section 43D(5) of the said Act. It is

submitted that the said provision clearly states that

Notwithstanding anything contained in the Code, no person

accused of an offence punishable under Chapters IV and VI

of this Act shall, if in custody, be released on bail or on his

own bond unless the Public Prosecutor has been given an

opportunity of being heard on the application for such

release. Proviso to sub-section (5) of Section 43D further

creates an embargo in clear terms saying that such accused

person shall not be released on bail or on his own bond if

the Court, on a perusal of the case diary or the report made

under section 173 of the Code is of the opinion that there

are reasonable grounds for believing that the accusation

against such person is prima facie true. It is pointed out that

sub-section (6) of Section 43D specifically states that the

restrictions on granting of bail specified in sub-section (5) is

in addition to the restrictions under the Code or any other

law for the time being in force on granting of bail.
Patna High Court CR. APP (DB) No.1478 of 2025(6) dt.24-02-2026
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9. It is submitted that the respondent NIA has filed

a counter affidavit and they have brought on record the

copy of the charge-sheet filed against the accused persons,

namely, Md. Nazar Saddam, Md. Waris, Md. Zakir Hushain

and Muzaffar Ahmad Wani @ Sarfaraz (the appellant). The

role played by this appellant has been revealed in course of

investigation. The custodial interrogation of this appellant

discloses that he had transferred Rs.1,00,000/- in February

2024 to bank account of Md. Nazar Saddam held in SBI for

handing over the amount to one Mithilesh Tiwari, a resident

of Nepal, who in turn would provide Rs.2,50,000/- worth of

FICNs. Md. Nazar Saddam reached Raxual and contacted

Mithilesh Tiwari. This appellant disclosed that

subsequently, Md. Nazar Saddam travelled to Anantnag,

J&K and handed over Rs.50,000/- worth of FICNs to him.

Thereafter, this appellant paid Md. Nazar Saddam to book a

flight ticket from Srinagar to New Delhi. Paragraph 17.6 to

17.18 of the charge-sheet have been placed before this

Court.

10. It is submitted that details of transactions

conducted by the suspect, a close associate of accused Md.
Patna High Court CR. APP (DB) No.1478 of 2025(6) dt.24-02-2026
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Nazar Saddam and Muzaffar Ahmad Wani through his

Binance ID were analyzed. It was established that the

suspect had transferred 1.99 USDT, 500 USDT and 500

USDT on 14.06.2024, 02.07.2024 and 09.07.2024

respectively. The recipient of the said crypto currency was

identified as Salman Muhammad, a resident of Kashmora,

Pakistan. It is stated that during investigation a mobile

phone was seized during search at the house of accused Md.

Nazar Saddam on 19.02.2025. Analysis of the extracted

data of device revealed that it was used by Md. Nazar

Saddam during the relevant period of the crime in the

instant case. The examination of the extracted data from the

mobile phone uncovered a Facebook chat dated 09.07.2024

between Md. Nazar Saddam and Muzaffar Ahmad Wani @

Sarfaraz (the appellant) in which they discussed about

USDT (cryptocurrency). Another incriminating chat has

been found in which this appellant asked whether the

payments had to be made in USDT or into account. During

the investigation the digital devices were seized from the

residence of Md. Nazar Saddam and several transactions

have been revealed in the technical analysis of the mobile
Patna High Court CR. APP (DB) No.1478 of 2025(6) dt.24-02-2026
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number used by Md. Nazar Saddam. The technical analysis

has revealed that how Md. Nazar Saddam travelled to

Anantnag, J&K on two occasions during March 2024 in

connection with the procurement of FICNs from Nepal and

their subsequent supply to this appellant in Anantnag, J&K,

for circulation.

11. Learned ASG submits that so far as the plea of

the appellant that the seizure list has been prepared in

advance and the FIR has been lodged later on is concerned,

the learned trial court has discussed this aspect of the matter

in the impugned order and no fault may be found with the

same.

12. Referring to a recent judgment of the Hon’ble

Supreme Court in the case of Dr. Naresh Kumar Garg Vs.

State of Haryana and Ors. reported in 2026 INSC 176,

learned ASG submits that assuming without admitting that

there is a non-compliance with Section 105 BNSS, it cannot

be argued by the appellant that because of the said non-

compliance the recovery of fake currency from his

possession would not be proved. The recovery would not

become illegal.
Patna High Court CR. APP (DB) No.1478 of 2025(6) dt.24-02-2026
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13. Learned ASG further submits that there may

be some delay in sending the fake currencies to the forensic

authority but that alone cannot be ground at this stage to be

looked into for purpose of grant of bail. In his submission,

the plea of the appellant that he was not communicated as to

the grounds for his arrest has no basic foundations and this

issue is being raised at this stage. The appellant never

moved any competent court of law immediately after his

arrest and from the impugned order also it would appear

that this issue was raised/convassed before the trial court.

14. It is submitted that the charges have already

been framed in this case and custody of the appellant is not

such that the ratio of the judgment in the case of Sheikh

Javed Iqbal @ Ashfaq Ansari @ Javed Ansari (supra)

which has been relied upon by the appellant would help the

appellant at this stage. In the said case, the Hon’ble

Supreme Court exercised its constitutional power and

release the appellant considering that he was in custody for

9 years and during this period of 9 years only two charge-

sheet witnesses were examined. That is not the issue or case

here.
Patna High Court CR. APP (DB) No.1478 of 2025(6) dt.24-02-2026
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15. We have heard learned counsel for the

appellant and learned ASG for the NIA and perused the

records. The learned trial court has passed the impugned

order after dealing with the pleas of the appellant with

regard to preparation of the seizure list. It has been noticed

that in course of evening patrolling the accused persons

were intercepted, they tried to escape but they overpowered

and caught. From their separate possessions various

amounts of currency in the denomination of Rs.500/-

having a total face value of Rs.1,95,000/- were seized.

Certain disclosures were made by the accused persons.

They revealed that the consignment of FICN is being taken

to Jammu & Kashmir via Delhi to be handed over to one

Sarfaraz @ Muzaffar Ahmad (the appellant). They further

revealed that they have been continuously indulging in such

procurement and delivery of consignment of FICN on

previous occasions.

16. The charge-sheet available on the record has

enlisted the role and activities played by the appellant. We

have referred some of the paragraphs which have been

placed before us. The investigation has found several
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money transactions between the accused persons and it has

been found that this appellant had managed the travelling of

the accused Md. Nazar Saddam by sending the money to

the bank account of Md. Nazar Saddam. The technical

analysis of the mobile of the said accused has revealed

several incriminating materials which prima-facie

establishes that this appellant was involved in the

procurement of FICN. The chats of device between Md.

Nazar Saddam and the appellant revealed their conspiracy

to bring Indian currency notes. Several incriminating voice

clips were found in the electronic devices seized during the

search conducted on 19.02.2025 in the instant case.

Specimen voice samples of this appellant and Md. Nazar

Saddam have been obtained and sent to CFSL, New Delhi

for comparison with the incriminating audio clips recovered

from the seized devices. In one of the audio clips, security

features of Indian currency, including optical variable

effects, transparency features, etc. are discussed.

17. On going through the materials available on

the record, we find no reason to take a view that there is no

prima-facie evidence against the appellant. The mandate of
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proviso to sub-section (5) of Section 43D clearly puts an

embargo on granting of bail if the court is of the opinion

that there are reasonable grounds for believing that the

accusation against such person is prima-facie true. In this

case not only the cognizance of the offences has been taken

by the learned court below, in fact even charges have

already been framed, therefore, it is evident that there are

sufficient materials on the record which satisfied the test of

cognizance and framing of charge.

18. We are of the opinion that so far as judgment

of the Hon’ble Supreme Court in the case of Sheikh Javed

Iqbal @ Ashfaq Ansari @ Javed Ansari (supra) is

concerned, it is not going to help the appellant because the

facts mentioned in the said judgment in paragraphs ‘7’ and

‘8’ would clearly show that in the said case the accused-

appellant had remained in custody for 9 years, charges were

framed in the year 2016 but during 9 years incarceration of

the appellant only two witnesses were examined. The

present case is clearly distinguishable. The appellant is in

custody only since 16.09.2024.

19. We would further record that even with regard
Patna High Court CR. APP (DB) No.1478 of 2025(6) dt.24-02-2026
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to non-furnishing of written grounds for arrest seems to be a

half-hearted plea which has not been raised on any earlier

occasion.

20. The submission of learned counsel for the

appellant as regards certain violation of the procedures in

the matter of search and seizure and non-sending of the

currency notes to the FSL cannot be a ground to be

considered at this stage for purpose of bail.

21. The effect of those and the nature of the

requirement of those provisions may only be considered at

the stage of the trial.

22. In our considered opinion, the appeal has no

merit. It is dismissed accordingly.

23. It is expected that the trial court shall proceed

with the trial expeditiously and all endeavours be made to

conclude the same as early as possible.

(Rajeev Ranjan Prasad, J)

(Praveen Kumar, J)
arvind/-

U T

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