Bombay High Court Allows Revision and Discharges Up-Sarpanch in Corruption Case for Lack of Sanction Under Section 19 of Prevention of Corruption Act, 1988. The court held that the applicant being a public servant removable by the State Government, sanction for prosecution was mandatory and its absence vitiated the proceedings.

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

The case involves a criminal revision application filed by Mohan s/o Laxman Bhandare, who was elected as a member and later Up-Sarpanch of Aurad Shahajani village panchayat. Fulchand Madhavrao Bondge, an employee of the panchayat, applied for a No Objection Certificate (NOC) to open a Permit Room and Beer Bar. The panchayat initially passed a resolution granting permission on 14.08.2018, but after an objection from the Head Master of a nearby school, the resolution was cancelled. The applicant opposed the grant of NOC. Subsequently, Fulchand's son, Bhagwat Bondge, filed a complaint with the Anti Corruption Bureau (ACB) alleging that the applicant and the Gramsevak demanded a bribe of Rs. 50,000 for issuing the NOC. A trap was laid, and the applicant was caught accepting the bribe. The ACB filed a chargesheet, and the applicant filed a discharge application under Section 227 of CrPC, which was rejected by the learned Additional Sessions Judge and Special Judge, Nilanga, on 28.01.2020. The applicant challenged this order in the High Court. The main legal issues were whether the discharge application was correctly rejected and whether sanction under Section 19 of the Prevention of Corruption Act, 1988 was required. The applicant argued that he was a public servant removable by the State Government and that no sanction was obtained, making the prosecution invalid. The State opposed, contending that the applicant was not a public servant under the PC Act. The court analyzed the definition of 'public servant' under Section 2(c) of the PC Act and found that the applicant, as an Up-Sarpanch, was a public servant removable by the State Government. Since no sanction was obtained, the order rejecting discharge was set aside, and the applicant was discharged. The court also noted that the material on record did not establish a prima facie case against the applicant.

Headnote

A) Criminal Law - Corruption - Discharge - Sanction for Prosecution - Section 19 of Prevention of Corruption Act, 1988 - The applicant, an Up-Sarpanch, was accused of demanding and accepting a bribe for issuing a No Objection Certificate for a Permit Room and Beer Bar. The court held that since the applicant was a public servant removable by the State Government, sanction under Section 19 of the PC Act was mandatory before taking cognizance. In the absence of such sanction, the order rejecting discharge was set aside and the applicant was discharged. (Paras 1-10)

B) Criminal Procedure - Discharge - Prima Facie Case - Section 227 of Code of Criminal Procedure, 1973 - The court examined the material on record and found that the allegations of demand and acceptance of bribe were not supported by credible evidence. The complainant's son had filed the complaint, but the trap was laid without proper verification. The court held that no prima facie case was made out against the applicant, warranting discharge. (Paras 4-9)

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Issue of Consideration

Whether the order rejecting discharge of the applicant under Section 19 of the Prevention of Corruption Act, 1988 is sustainable in law.

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Final Decision

The revision application is allowed. The order dated 28.01.2020 passed by the learned Additional Sessions Judge and Special Judge, Nilanga, below Exh. 21 in Special Case (ACB) No. 01 of 2019 is set aside. The applicant is discharged from the said case.

Law Points

  • Sanction for prosecution under Section 19 of Prevention of Corruption Act
  • 1988 is mandatory
  • Discharge when no prima facie case
  • Scope of revision against discharge rejection
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Case Details

2021 LawText (BOM) (08) 9

Criminal Revision Application No. 30 of 2021

2021-08-23

Surendra P. Tavade

Mr. Rajendra S. Deshmukh (Senior Counsel) a/w Mr. Vishal Chavan i/by Mr. Shinde Shrikishan S., Mrs. R.P. Gaur

Mohan s/o Laxman Bhandare

The State of Maharashtra

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Nature of Litigation

Criminal revision against rejection of discharge application in a corruption case

Remedy Sought

The applicant sought setting aside of the order dated 28.01.2020 rejecting his discharge application and prayed for discharge from the case

Filing Reason

The applicant was accused of demanding and accepting a bribe for issuing a No Objection Certificate for a Permit Room and Beer Bar

Previous Decisions

The learned Additional Sessions Judge and Special Judge, Nilanga, rejected the discharge application on 28.01.2020

Issues

Whether the order rejecting discharge is sustainable in law? Whether sanction under Section 19 of the Prevention of Corruption Act, 1988 was required?

Submissions/Arguments

The applicant argued that he is a public servant removable by the State Government and no sanction was obtained, making the prosecution invalid. The State argued that the applicant is not a public servant under the PC Act and sanction is not required.

Ratio Decidendi

A public servant removable by the State Government cannot be prosecuted under the Prevention of Corruption Act, 1988 without prior sanction under Section 19 of the Act. In the absence of such sanction, the proceedings are vitiated and the accused is entitled to discharge.

Judgment Excerpts

The applicant being a public servant removable by the State Government, sanction under Section 19 of the PC Act was mandatory before taking cognizance. In the absence of such sanction, the order rejecting discharge is set aside and the applicant is discharged.

Procedural History

The applicant filed a discharge application in Special Case (ACB) No. 01 of 2019 before the Additional Sessions Judge and Special Judge, Nilanga, which was rejected on 28.01.2020. Aggrieved, the applicant filed Criminal Revision Application No. 30 of 2021 before the Bombay High Court, Bench at Aurangabad.

Acts & Sections

  • Prevention of Corruption Act, 1988: Section 19, Section 2(c)
  • Code of Criminal Procedure, 1973: Section 227
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