National security paramount: HC on quashing plea of vendor who tampered with e-seals

The High Court has dismissed a petition from an RFID e-seal supplier who has moved the court to quash the FIR filed against it for tampering with the e-seals leading to security breaches.

Justice M Nagaprasanna declined to interfere with the investigations on ibTrack Solutions Private Limited, observing that security of the nation — economic or otherwise — is paramount compared to any business house.

On verification, it was found that containers using e-seals supplied by the Bengaluru-based company was passing customs clearance without a lock. It was also alleged that the e-seals could be scanned from a closer distance without being in a locked condition.

The petitioner company and its director, Sudhendra Dhakanikote, prayed for quashing of the FIR registered by the Indiranagar police on July 16, 2019. It was alleged that e-seals were tampered with regularly. The company’s emails indicated that they switched off tampering alerts, resulting in containers with tampered seals also getting exported.

On these facts, it was also alleged that the company intentionally submitted reports, which had serious ramifications on the economy and security of the nation.

The petitioner submitted that it is the company, not its director, who could be held responsible. It was also argued that the high court quashed proceedings against the company’s 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,” Justice Nagaprasanna said.

The court further said, “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, at 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 observed.