High Court Quashes Order Declining Approval Under Prevention of Corruption Act Due to Non-Application of Mind. The Court held that an order under Section 17A must reflect independent consideration and cannot be based solely on exoneration in a departmental enquiry, directing fresh reconsideration.

High Court: Karnataka High Court Bench: BENGALURU
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Case Note & Summary

The dispute arose from a writ petition filed by a lawyer and social activist challenging an order dated 26-05-2025 passed by the Under Secretary, Department of Personnel and Administrative Reforms, Government of Karnataka, which declined to grant approval under Section 17A of the Prevention of Corruption Act, 1988. The petitioner sought investigation into alleged corruption concerning the diversion of funds for procurement of eco-friendly cloth bags in Mysore District, claiming a loss of approximately ₹7.55 crores to the State exchequer. The petitioner had previously filed a writ petition challenging an earlier rejection of approval, which was quashed by a coordinate Bench of the High Court, which remitted the matter for fresh consideration. The impugned order was passed thereafter, which the petitioner contended was verbatim similar to the earlier quashed order and lacked application of mind. The core legal issue was whether the impugned order suffered from non-application of mind and was liable to be quashed. The petitioner argued that the order did not reflect fresh consideration as directed by the Court and that the exoneration in a departmental enquiry should not preclude criminal investigation. The State submitted that approval was declined based on the departmental enquiry outcome but left the decision to the Court. The Lokayukta, a formal party, also deferred to the Court. The Court, after hearing submissions and perusing the record, found that the impugned order was indeed similar to the earlier quashed order and lacked independent application of mind. It held that the mere closure of a departmental enquiry cannot be the sole ground for declining approval under Section 17A, as criminal proceedings may still be warranted. The Court quashed the impugned order and directed the respondents to reconsider the matter afresh, in accordance with law, ensuring proper application of mind.

Headnote

A) Criminal Law - Prevention of Corruption Act - Section 17A Approval - Application of Mind - Prevention of Corruption Act, 1988, Section 17A - The petitioner challenged an order declining approval under Section 17A for investigation into alleged corruption in procurement of eco-friendly cloth bags. The Court found the impugned order was verbatim similar to an earlier order quashed by a coordinate Bench for want of application of mind. Held that the order lacked independent application of mind and was liable to be quashed, with directions for fresh consideration (Paras 1-3, 7-8).

B) Criminal Law - Prevention of Corruption Act - Section 17A Approval - Departmental Enquiry - Prevention of Corruption Act, 1988, Section 17A - The State argued approval was declined because a departmental enquiry had exonerated the officer. The Court noted that mere closure of departmental enquiry does not preclude commencement of criminal proceedings. Held that this cannot be the sole reason for declining approval under Section 17A, and the matter requires fresh consideration on merits (Paras 4-5, 7).

Issue of Consideration: Whether the order dated 26-05-2025 passed by respondent No.2 declining approval under Section 17A of the Prevention of Corruption Act, 1988, suffers from non-application of mind and is liable to be quashed.

Final Decision

The Court quashed the order dated 26-05-2025 and directed the respondents to reconsider the matter afresh in accordance with law.

2026 LawText (KAR) (03) 36

Writ Petition No.2783 of 2026 (GM – RES)

2026-03-27

M. Nagaprasanna J.

Sri Bipin Hegde, Sri Gaurav N., Sri B.N. Jagadeesha, Sri B. Lethif

Sri Ravichandre Gowda N.R.

State of Karnataka, The Under Secretary, Department of Personnel and Administrative Reforms (D.P.A.R.), Government of Karnataka, The Superintendent of Police, Karnataka Lokayukta

Nature of Litigation: Writ petition under Articles 226 and 227 of the Constitution of India read with Section 528 of BNSS, 2023

Remedy Sought

Petitioner seeks to quash the order dated 26.05.2025, direct grant of approval under Section 17A of the Prevention of Corruption Act, 1988, and direct registration of FIR and investigation

Filing Reason

Alleged corruption in diversion of funds for procurement of eco-friendly cloth bags, causing loss to State exchequer

Previous Decisions

Earlier order rejecting approval was quashed by coordinate Bench in Writ Petition No.2805 of 2025, remitting matter for fresh consideration

Issues

Whether the order dated 26-05-2025 declining approval under Section 17A of the Prevention of Corruption Act, 1988, suffers from non-application of mind and is liable to be quashed.

Submissions/Arguments

Petitioner argued the order is verbatim similar to earlier quashed order and lacks application of mind; departmental exoneration should not preclude criminal proceedings. State submitted approval was declined based on departmental enquiry outcome but left decision to Court. Lokayukta deferred to Court as formal party.

Ratio Decidendi

An order under Section 17A of the Prevention of Corruption Act, 1988, must reflect independent application of mind and cannot be based solely on exoneration in a departmental enquiry, as criminal proceedings may still be warranted.

Judgment Excerpts

The petitioner is before this Court calling in question an order dated 26-05-2025 passed by the 2 nd respondent declining to grant approval as sought by him under Section 17A of the Prevention of Corruption Act, 1988. The petitioner now calls in question the order dated 26-05-2025 on the score that it is verbatim similar to the order that was passed earlier and quashed by the coordinate Bench of this Court. He would submit that, that cannot be a reason for declining approval under Section 17A of the Act, as mere closure of departmental enquiry would not mean that criminal proceedings cannot even be commenced.

Procedural History

Petitioner filed complaint; ACB sought approval under Section 17A on 17-12-2021; approval rejected on 19-09-2022; petitioner challenged in Writ Petition No.2805 of 2025; coordinate Bench quashed rejection and remitted for fresh consideration on 20-02-2025; impugned order passed on 26-05-2025; present writ petition filed.

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