JUDGMENT :

1. This is a Criminal Appeal filed by the State, being represented by the Inspector of Police, Anti-Corruption Bureau, Nellore Range, Ongole, Prakasam District, against the judgment in C.C.No.8 of 2001, dated 22.01.2007, on the file of Special Judge for SPE & ACB Cases, Nellore, whereunder the learned Special Judge, found the Accused Officer No.1 (“A.O.1” for short) therein not guilty of the charges under Sections 7 and 13(2) r/w 13(1)(d) of Prevention of Corruption Act, 1988 and found the Accused Officer No.2 (“A.O.2” for short) therein not guilty of the charges under Sections 12 and 13 (2) r/w 13(1)(d) of Prevention of Corruption Act, 1988 and acquitted them under Section 248(1) of the Code of Criminal Procedure (“Cr.P.C.” for short).

2. The parties to this Criminal Appeal will hereinafter be referred as described before the trial Court for the sake of convenience.

3. The State i.e., Inspector of Police, Anti-Corruption Bureau, Prakasam District, Ongole, filed a charge sheet against the A.Os.1 and 2 in Crime No.1/ACB-NPK/2000 of A.C.B., Nellore Range, alleging in substance is as follows:

(i) Sri Chinthalapati Papaiah (A.O.1), worked as Municipal Commissioner, Ongole, during the period from 08.08.1998 to 14.06.2000. Sri Devarapalli Venkata Ramana Reddy (A.O.2), worked as Gardener-cum-Attender at Ongole Municipality during the period from 14.11.1983 to 06.05.2000. They are public servants within the meaning of clause (C) of Section 2 of Prevention of Corruption Act, 1988 (Central Act 49 of 1988).

(ii) Sri Kollabathina Prabhakar Rao is President of Schedule Caste Labour Contract Cooperative Society Limited, Gaddalaguntapalem, Ongole and he is the complainant (L.W.1).

(iii) The Ongole Municipality called for tenders for CC road work under Integrated Development of Small and Medium Towns Scheme from Sitarama Swamy Temple junction to Gaddalaguntapalem main road, Ongole Town. Sri K. Prabhakara Rao (L.W.1) being the President of Schedule Caste Labour Contract Cooperative Society Limited, Gaddalaguntapalem, Ongole, filed his tender along with others. Ongole Municipality accepted the said tender, which is lowest price for Rs.5,74,445/- Accordingly, work order was given to him on 20.07.1999. He started the work of CC road and completed it by January, 2000. Ongole Municipality paid a sum of Rs.2,50,000/- during December, 1999 to him as part payment. The Municipal Engineering staff, Ongole, prepared bill for Rs.2,50,000/- as part of bill and sent the records of work along with the bill to the Accounts Section of Ongole Municipality on 21.03.2000. L.W.1 met Sri Ch. Papaiah, Municipal Commissioner (A.O.1) on 21.03.2000 at about 2-00 P.M. at his office and requested him to issue cheque for the due amount of Rs.2,50,000/- in respect of work executed by him. Then A.O.1 demanded to pay Rs.5,000/- as an illegal gratification to issue the cheque. When L.W.1 pleaded his inability A.O.1 informed that he would get the cheque prepared and issued as and when he pays the demanded bribe amount. L.W.1 was un-willingly accepted to pay Rs.5,000/- as bribe amount to A.O.1 and went away.

(iv) As he was not willing to pay the demanded bribe, he approached the Inspector of Police, ACB (L.W.14) on 21.03.2000 at 4-30 P.M. and prepared a written report against A.O.1. The Inspector of Police made confidential enquiries on the report given by L.W.1 and endorsed to DSP, ACB, Nellore (L.W.13) on 22.03.2000. L.W.13 registered it as a case in Crime No.1/ACBNPK/ 2000 of Nellore Range on 22.03.2000 and further enquired. He conducted pre-trap proceedings at the office of Inspector, ACB, Ongole on 22.03.2000. On 22.03.2000 at 12-00 noon, L.W.1 met A.O.1 at Municipal Office, Ongole and enquired him about his payment. Then, A.O.1 asked him whether he brought the demanded bribe amount of Rs.5,000/-. When L.W.1 replied that he brought the same, A.O.1 directed him to pay the amount to Sri D. Venkata Ramana Reddy, Gardener-cum-Attender (A.O.2). He also directed A.O.2