Case Note & Summary
The petitioner, Adarsh Co-operative Housing Society Limited, a society registered under the Maharashtra Co-operative Societies Act, 1960, filed a Criminal Writ Petition under Article 226 of the Constitution of India before the Bombay High Court. The petitioner sought to quash the investigation being conducted by the Central Bureau of Investigation (CBI) into allegations of corruption and irregularities in the construction of the Adarsh Housing Society building in Colaba, Mumbai. The CBI had registered an FIR under the Prevention of Corruption Act, 1988, and other related offences. The petitioner argued that the CBI investigation was illegal because no sanction under Section 19 of the Prevention of Corruption Act had been obtained prior to the investigation, and that the CBI lacked jurisdiction to investigate in the State of Maharashtra without the consent of the state government under Section 6 of the Delhi Special Police Establishment Act, 1946. The respondents, including the Union of India, the State of Maharashtra, and the CBI, opposed the petition, contending that sanction under Section 19 is required only at the stage of taking cognizance, not at the investigation stage, and that the CBI had jurisdiction as the investigation was ordered by the High Court in a public interest litigation. The court, comprising Justice Ranjana Desai and Justice Ranjit More, held that the requirement of sanction under Section 19 of the Prevention of Corruption Act applies only when the court takes cognizance of an offence, and not during the investigation. The court further held that the CBI's jurisdiction to investigate in Maharashtra was not in question because the investigation was directed by the High Court in a PIL, and the petitioner had not made out any case of mala fides or abuse of process warranting interference under Article 226. The court dismissed the petition, allowing the CBI to continue its investigation.
Headnote
A) Criminal Law - Investigation - Sanction for Prosecution - Section 19 Prevention of Corruption Act, 1988 - Sanction under Section 19 is required only at the stage of taking cognizance by the court, not at the stage of investigation - The court held that the CBI can investigate without prior sanction and the petition challenging investigation on this ground is premature (Paras 5-6). B) Criminal Law - Jurisdiction of CBI - Consent of State - Delhi Special Police Establishment Act, 1946, Section 6 - The CBI can investigate in a state without its consent if the investigation relates to a central government employee or a central government undertaking - The court held that the petitioner-society, being a co-operative society, does not fall within the exception, but the CBI's jurisdiction was not challenged on this ground and the investigation was ordered by the High Court in a PIL, hence valid (Paras 7-10). C) Constitutional Law - Writ Jurisdiction - Interference with Investigation - Article 226 Constitution of India - The High Court will not interfere with an investigation unless there is mala fides, abuse of process, or the investigation is without jurisdiction - The court held that no such grounds were made out and the petition was dismissed (Paras 11-12).
Issue of Consideration
Whether the CBI investigation against the petitioner-society is illegal for want of sanction under Section 19 of the Prevention of Corruption Act, 1988, and whether the CBI lacked jurisdiction to investigate without the consent of the State of Maharashtra under the Delhi Special Police Establishment Act, 1946.
Final Decision
The Bombay High Court dismissed the criminal writ petition, holding that the CBI investigation is legal and valid. The court ruled that sanction under Section 19 of the Prevention of Corruption Act is not required at the investigation stage, and that the CBI's jurisdiction to investigate in Maharashtra was not in question as the investigation was directed by the High Court in a PIL. The court found no grounds to interfere under Article 226.
Law Points
- Sanction for prosecution not required at investigation stage
- CBI jurisdiction under DSPE Act without state consent
- Writ petition not maintainable against investigation
- No interference with investigation unless mala fides or abuse of process
