Gujarat HC issued another ‘arrest’ warrant against merchant vessel SW South Wind I
The Gujarat High Court has issued its third “arrest” warrant against merchant vessel SW South Wind I, held up at Deenadayal (Kandla) port, in the organic rice exports irregularities case.
Justice Mauna M Bhatt, in an oral order on Tuesday, issued the warrant in response to a plea filed by Farm Fresh International. This is the second case in which Justice Bhatt has issued the order. Last week, she ordered the arrest of the vessel following an appeal by Farmart. Earlier this month, Justice Nikhil S Kariel of the court ordered its arrest on a petition filed by MEIR Commodities India Ltd.
Farm Fresh told the court that purchased 600 tonnes of parboiled rice – the cargo in question – from Uma Agro and it sold the rice to Sapphire Commodities General Trading Fz LLC. The company then signed a contract with the owner of the vessel for shipment between July and August 2024.
‘Lack of clerance’
The loading of the consignment in the SW South Wind I was completed on August 7 and the vessel was ready for departure on August 8. However, it got an email on August 9 saying the ship had been detained on “lack of clearance for the cargo”.
Stating that his client’s cargo was compliant with export standards, the company argued that the vessel was detained due to “some other prohibited cargo”.
Blaming the vessel owners, masters and agents for the hold-up of its cargo, Farm Fresh said it had suffered losses to the tune of $422,737. Find that prime facie the exporting firm plea was in the nature of the maritime claim, Justice Bhatt ordered the arrest of the vessel along with its hull, engines, gears, tackles, bunkers, machinery, apparel, plant, furniture, equipment and all appurtenances.
The judge posted the next hearing for October 24, when Farmart’s plea will also come up. SW South Wind I was one of the two ships detained by DRI officials suspecting that white rice was being exported in the garb of organic rice.
Customs green light
The other ship MV Della departed Kandla port on October 19 after the Customs Commissioner allowed it to set sail “subject to fulfillment of other Customs/Ports formalities.
The Customs Commissioner told the port traffic manager that the additional commissioner (adjudication) of Kandla adjudicated the case and the default firms — Reliteaur Foods Pvt. Ltd. and Elite Agro Specialities — had paid the due amount of fine and penalty.
The Customs Commissioner, however, said SW South Wind I could set sail after getting a release order from the High Court.
Some exporters are reported to have violated the ban on white rice. (The ban was lifted on September 28, 2024). In the case of parboiled, they had dodged the 20 per cent export duty.
APEDA’s action
Data revealed that some of the consignments did not reach their destination. Also, some of the buying nations, particularly in Africa, cannot afford to buy organic rice, which commands a premium.
Data showed that 22,126 tonnes and 16,547 tonnes of organic rice shipments set sail for Vietnam and Kenya, respectively. But, hardly 2,000 tonnes reached their destinations.
Following businessline’s report, the Agricultural and Processed Food Products Export Development Authority (Apeda), the nodal agency for organic exports, suspended Sikkim State Organic Certification Agency from issuing organic certification and Reliteaur Foods Private Limited from exporting organic produce.
The suspension is for one year and both have been fined ₹10 lakh each. Reliteaur Foods has about 6,700 tonnes of rice cargo detained in SW South Wind I.