Bombay High Court Quashes FIR and Chargesheet in IHSDP Housing Scheme Corruption Case Due to Lack of Sanction Under Section 19 of Prevention of Corruption Act. Criminal proceedings under Sections 420, 406, 409, 464, 465, 468, 471, 120(B), 34 IPC and Sections 13(1)(c), 13(1)(d) r/w 13(2) of Prevention of Corruption Act, 1988 quashed as sanction for prosecution was not obtained for public servant co-accused, vitiating the entire prosecution.

High Court: Bombay High Court Bench: AURANGABAD In Favour of Accused
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Case Note & Summary

The applicants, Girdharilal Madhavdas Ramrakhya, Santosh Sitaram Jaiswal, Nazeemuddin Bashiruddin Shaikh, and Rajesh Santumal Kamra, filed a criminal application under Section 482 of the Code of Criminal Procedure, 1973, seeking quashing of FIR No. 153/2016 registered at Dondaicha Police Station, Dhule, and the chargesheet dated 18.04.2019 in Special Case No. 44/2019 pending before the Special Judge, Dhule. The FIR alleged offences under Sections 420, 406, 409, 464, 465, 468, 471, 120(B), 34 of the Indian Penal Code, 1860, and Sections 13(1)(c), 13(1)(d) read with 13(2) of the Prevention of Corruption Act, 1988. The case arose from the implementation of the Integrated Housing and Slum Development Programme (IHSDP), a housing scheme for homeless and weaker sections, jointly funded by the Central and State Governments. The applicants were private individuals, while the co-accused included a public servant. The primary legal issue was whether the prosecution could proceed without obtaining the mandatory sanction under Section 19 of the Prevention of Corruption Act for the public servant co-accused. The applicants argued that the absence of sanction vitiated the entire prosecution, making it an abuse of process. The State opposed, contending that sanction was not required for private individuals. The court analyzed Section 19 of the PC Act and held that sanction is a prerequisite for prosecuting a public servant for PC Act offences. Since no sanction was obtained, the prosecution against the public servant was invalid, and consequently, the entire proceedings, including against the non-public servant applicants, were vitiated. The court quashed the FIR and chargesheet, exercising inherent powers under Section 482 CrPC to prevent abuse of process.

Headnote

A) Criminal Procedure Code - Quashing of FIR - Section 482 CrPC - Sanction under Section 19 of Prevention of Corruption Act - The applicants sought quashing of FIR and chargesheet alleging offences under IPC and Prevention of Corruption Act. The court held that since the co-accused public servant was not granted sanction under Section 19 of the PC Act, the entire prosecution is vitiated and quashed the proceedings. (Paras 1-10)

B) Prevention of Corruption Act - Sanction for Prosecution - Section 19 - Mandatory Requirement - The court held that sanction under Section 19 is a prerequisite for prosecuting a public servant for offences under the PC Act. Failure to obtain such sanction renders the prosecution invalid, even against non-public servant co-accused. (Paras 5-8)

C) Criminal Procedure Code - Abuse of Process - Section 482 CrPC - Quashing of Criminal Proceedings - The court held that continuing prosecution without sanction amounts to abuse of process of law, warranting exercise of inherent powers under Section 482 CrPC to quash the FIR and chargesheet. (Paras 9-10)

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Issue of Consideration

Whether the FIR and chargesheet can be quashed under Section 482 CrPC for want of sanction under Section 19 of the Prevention of Corruption Act, 1988, when the co-accused includes a public servant?

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Final Decision

The court allowed the application and quashed FIR No. 153/2016 and the chargesheet dated 18.04.2019 in Special Case No. 44/2019 pending before the Special Judge, Dhule.

Law Points

  • Sanction under Section 19 of Prevention of Corruption Act is mandatory for prosecution of public servant
  • Failure to obtain sanction vitiates entire prosecution even against non-public servant co-accused
  • Quashing under Section 482 CrPC is permissible when prosecution is abuse of process of law
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Case Details

2023 LawText (BOM) (06) 1

Criminal Application No. 1125 of 2020

2023-06-09

Mangesh S. Patil, Abhay S. Waghwase

Shri V. D. Sapkal, Senior Advocate a/w Shri A. R. Syed, Advocate i/b. Shri S. P. Brahme, Advocate for Applicants; Shri M. M. Nerlikar, APP for Respondent No.1 – State; Shri R. K. Ingole, Advocate for Respondent No.2

Girdharilal Madhavdas Ramrakhya, Santosh Sitaram Jaiswal, Nazeemuddin Bashiruddin Shaikh, Rajesh Santumal Kamra

The State of Maharashtra, Krushna Gopal Nagrale

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Nature of Litigation

Criminal application under Section 482 CrPC for quashing of FIR and chargesheet in a corruption case related to IHSDP housing scheme.

Remedy Sought

Applicants sought quashing of FIR No. 153/2016 and chargesheet in Special Case No. 44/2019.

Filing Reason

Applicants alleged that the prosecution was vitiated due to lack of mandatory sanction under Section 19 of the Prevention of Corruption Act for the co-accused public servant.

Issues

Whether the FIR and chargesheet can be quashed under Section 482 CrPC for want of sanction under Section 19 of the Prevention of Corruption Act, 1988, when the co-accused includes a public servant?

Submissions/Arguments

Applicants argued that sanction under Section 19 PC Act is mandatory for prosecuting a public servant, and its absence vitiates the entire prosecution, including against private individuals. State argued that sanction is not required for private individuals and the prosecution should continue.

Ratio Decidendi

Sanction under Section 19 of the Prevention of Corruption Act is a mandatory prerequisite for prosecuting a public servant for offences under the Act. Failure to obtain such sanction renders the prosecution invalid and an abuse of process, warranting quashing under Section 482 CrPC, even against non-public servant co-accused.

Judgment Excerpts

All applicants herein are seeking exercise of powers under Section 482 of the Code of Criminal Procedure [Cr.P.C.] praying for following principal relief: ... quash and set aside first information report bearing C.R. No.153/2016 ... which was for offence punishable u/s. 420, 406, 409, 464, 465, 468, 471, 120(B), 34 of IPC and u/s. 13(1)(C), (D) r/w. 13(2) of Prevention of Corruption Act. Under the aegis of Union Government, the Government of Maharashtra declared implementation of a housing scheme i.e. Integrated Housing and Slum Development Programme [IHSDP].

Procedural History

FIR No. 153/2016 was registered at Dondaicha Police Station. Chargesheet was filed on 18.04.2019 in Special Case No. 44/2019 before the Special Judge, Dhule. Applicants filed Criminal Application No. 1125 of 2020 under Section 482 CrPC seeking quashing. The application was reserved on 27.04.2023 and pronounced on 09.06.2023.

Acts & Sections

  • Code of Criminal Procedure, 1973: 482
  • Indian Penal Code, 1860: 420, 406, 409, 464, 465, 468, 471, 120(B), 34
  • Prevention of Corruption Act, 1988: 13(1)(c), 13(1)(d), 13(2), 19
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