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2014 Supreme(SC) 416

SUPREME COURT OF INDIA
T.S. THAKUR, C. NAGAPPAN, JJ.
Subrata Chattoraj – Appellant
Vs.
Union of India & Ors. – Respondents
[Writ Petition (Civil) No.401 of 2013] [Writ Petition (Civil) No.402 of 2013] [T.P. (C) No.445 of 2014]
Alok Jena – Appellant
Vs.
Union of India & Ors. – Respondents
[Writ Petition (Civil) No.413 of 2013] [Writ Petition (Civil) No.324 of 2014]
Decided On : 09-05-2014

IMPORTANT POINT
Chit-fund scam needs investigation by CBI.

Headnote:Administration of Justice – Judicial Review – Constitution of India – Article 32 – Transfer of investigation from State Police to CBI – Court should exercise the power sparingly and with utmost care. (Para 9)

       (2010) 3 SCC 571; (1994) 6 SCC 275; 1994 (Supp) (1) SCC 143; (2011) 9 SCC 182; (2013) 10 SCC 611 – Relied upon

       Constitution of India – Article 32 – Transfer of cases from State Police to CBI – Chit-fund scam – Sharda group of Companies having business in States of West Bengal, Tripura, Assam and Odisha involving collection of nearly Rs.10,000 crores (approx.) from the general public especially the weaker sections of the society – Business not legally authorised – Investors suffering – Regulators like SEBI, RBI not discharging their responsibilities – International money laundering dimensions not ruled out – State police investigation not faulty, but inadequate – Larger conspiracy angle not properly investigated – Involvement of several political and other influential personalities wielding considerable clout and influence apprehended – Tripura and Assam already handing over investigation to CBI – Cases of West Bengal and Odisha also transferred to CBI. (Para 30, 31, 34)

       (2005) 5 SCC 517 – Relied upon

       Facts of the case:

       This is a case involving prayer for transfer of investigation into Chit-fund scam in West Bengal and Odisha from State police to CBI.

       Finding of the Court:

       Transfer of the cases to CBI would be proper.

JUDGMENT

T.S. THAKUR, J. –

1. Writ Petitions seeking transfer of investigation from the State Agencies to the Central Bureau of Investigation (CBI) under the Delhi Special Police Establishment Act, is by no means uncommon in the High Courts in this country. Some, if not most of such cases in due course travel to this Court also, where, issues touching the powers of the High Courts and at times the power of this Court to direct such transfers are raised by the parties. The jurisdictional aspect is, however, no longer res integra, the same having been answered authoritatively by a Constitution Bench of this Court in State of West Bengal & Ors. v. Committee for Protection of Democratic Rights, West Bengal & Ors. (2010) 3 SCC 571.

This Court in that case was examining whether the federal structure and the principles of separation of powers, made it impermissible for the superior courts to direct transfer of investigation from the State Police to the CBI. Rejecting the contention, this Court held that power of judicial review itself being a basic feature of the Constitution, the writ courts could issue appropriate writ, directions and orders to protect the fundamental rights of the citizens. This Court observed:

"51. The Constitution of India expressly confers the power of judicial review on this Court and the High Courts under Articles 32 and 226 respectively. Dr. B.R. Ambedkar described Article 32 as the very soul of the Constitution-the very heart of it-the most important article. By now, it is well settled that the power of judicial review, vested in the Supreme Court and the High Courts under the said articles of the Constitution, is an integral part and essential feature of the Constitution, constituting part of its basic structure.

Therefore, ordinarily, the power of the High Court and this Court to test the constitutional validity of legislations can never be ousted or even abridged. Moreover, Article 13 of the Constitution not only declares the pre-Constitution laws as void to the extent to which they are inconsistent with the fundamental rights, it also prohibits the State from making a law which either takes away totally or abrogates in part a fundamental right. Therefore, judicial review of laws is embedded in the Constitution by virtue of Article 13 read with Articles 32 and 226 of our Constitution. 52. It is manifest from the language of Article 245 of the Constitution that all legislative powers of Parliament or the State Legislatures are expressly made subject to other provisions of the Constitution, which obviously would include the rights conferred in Part III of the Constitution.

Whether there is a contravention of any of the rights so conferred, is to be decided only by the constitutional courts, which are empowered not only to declare a law as unconstitutional but also to enforce fundamental rights by issuing directions or orders or writs of or "in the nature of" mandamus, certiorari, habeas corpus, prohibition and quo warranto for this purpose. 53. It is pertinent to note that Article 32 of the Constitution is also contained in Part III of the Constitution, which enumerates the fundamental rights and not alongside other articles of the Constitution which define the general jurisdiction of the Supreme Court.

Thus, being a fundamental right itself, it is the duty of this Court to ensure that no fundamental right is contravened or abridged by any statutory or constitutional provision. Moreover, it is also plain from the expression "in the nature of" employed in clause (2) of Article 32 that the power conferred by the said clause is in the widest terms and is not confined to issuing the high prerogative writs specified in the said clause but includes within its ambit the power to issue any directions or orders or writs which may be appropriate for enforcement of the fundamental rights. Therefore, even when the conditions for issue of any of these writs are not fulfilled, this Court would not be constrained to fold its ha









































































































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