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As per case facts, co-accused Gagandeep Singh was arrested with heroin and money, disclosing Petitioner Sukhchain Masih as the seller. Sukhchain's anticipatory bail was dismissed by the Special Court, leading
...him to appeal to the High Court. The question arose whether mere recovery of cash alongside contraband automatically constitutes "financing illicit traffic" under §27-A of the NDPS Act, thereby invoking stringent bail conditions under §37. Finally, the High Court ruled that possession of money, being legal tender, is not, per se, a prohibited act. Mere recovery of cash with contraband does not automatically make out "financing illicit traffic." Credible evidence of a plausible nexus with illicit trafficking is required, and the burden of proof lies with the investigative agency. Without such evidence, §27-A and §37 restrictions do not apply.
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