This led to the bail grant for Faiz Bhiwandiwala and Parvez Vaid.
The Bombay High Court has said fugitive gangster Dawood Ibrahim has been declared a terrorist in his individual capacity under Unlawful Activities Prevention Act (UAPA) and, hence, any association with him or his gang would not attract provisions of the stringent law.
A division bench of Justices Bharati Dangre and Manjusha Deshpande, in an order of July 11, details of which were made available on Friday, granted bail to two persons held by the Maharashtra Anti Terrorism Squad in August 2022.
The ATS had claimed Faiz Bhiwandiwala, from whom it seized 600 grams of ganja, and Parvez Vaid, were members of Dawood Ibrahim's gang.
The duo was booked under UAPA for being members of a terrorist organisation, committing terrorist acts and collecting funds for commission of an offence as well as under Narcotic Drugs and Psychotropic Substances (NDPS) Act provisions.
In its judgment, the HC said the Union government had issued a notification on September 4, 2019, notifying "Dawood Ibrahim Kaskar as a 'Terrorist' under the UAPA".
The bench said UAPA has segregated the activities of an individual, which would amount to a terrorist act on one hand, and the activities by the terrorist gang and terrorist organization on the other.
"In our view, prima facie, the offence of Section 20 of the UAPA (being member of a terrorist organisation) would not be attracted, as Dawood Ibrahim Kaskar has been declared as a terrorist in individual capacity," the court said.
"Therefore, any association with him on the pretext that a person belongs to D-gang/Dawood gang will not attract the provisions of Section 20," it added.
The bench also said additional public prosecutor S V Gavand, on instructions from the ATS officer, made a statement that there was no material in the chargesheet establishing the accusations under UAPA sections 17 and 18, which pertain to committing a terror act and collecting funds for commission of an offence.
The HC also said the contraband allegedly seized from one of the accused was a small amount.
The court released the duo on furnishing a personal bond of Rs 50,000 each.