Police Custody means that police have the physical custody of the accused while Judicial Custody means an accused is in the custody of the concerned Magistrate. In police custody, the accused is lodged in a police station lockup while in judicial custody, it is the jail. Hence, Statement 1 is incorrect.
When Police take a person into custody, the Cr. P.C kicks in and they were produced before a Magistrate within 24 hours of the arrest.
During Judicial Custody, the police officer in charge of the case is not allowed to interrogate the suspect. However, the court may allow the interrogations to be conducted if it opines the interrogation is necessary under the facts produced before the court. Hence, Statement 2 is correct.