2016 Supreme(Kar) 710
IN THE HIGH COURT OF KARNATAKA
Rathnakala, J.
Central Bureau of Investigation Anti-Corruption Branch, Bengaluru - Petitioner
Versus
M.E. Shivalingamurthy - Respondent
Criminal Revision Petition No. 838 OF 2016
Decided On : 07-11-2016
For the Petitioner: P. Prasanna Kumar, SPL. PP.
For the Respondent:Siddartha B. Muchandi, Advocate
Headnote:CODE OF CRIMINAL PROCEDURE, 1973 – Section 227 – Discharge – Criminal conspiracy – Circumstantial evidence – Accused recommended issue of Mineral Dispatch Permits in gross violation of Mines of Minerals (Development of Regulation) Act and Rules despite that matter required legal opinion – Alleged offence caused loss to State exchequer substantially – Due to lack of direct evidence, court lost sight of incriminating material appearing in circumstantial evidence – Order of discharge held, not proper.
CODE OF CRIMINAL PROCEDURE, 1973 – Section 239 – Discharge – Mere suspicion but not grave suspicion, not sufficient to frame charge against accused.
Rathnakala, J.
1. The prosecuting Agency/Central Bureau of Investigation/Anti-Corruption Board ('CBI/ACB' for brevity) is aggrieved by the order dated 8th October, 2015 passed on I.A.No.30 in Spl.C.C. No. 116/2012 by the learned XLVI Addl.City Civil and Sessions Judge and Special Judge for CBI Cases, Bengaluru, whereby the application (I.A. No. 30) filed by the respondent/accused No. 3 under Section 227 of the Code of Criminal Procedure came to be allowed thereby discharging the accused from criminal charges.
2. A case in RC 18(A)/2011 was registered by the CBI/ACB, in pursuance of the orders of the Apex Court dated 29.3.2011 in Special Leave to Appeal (Civil) No. 7366-7367/2010 and connected matters in which the direction was to investigate the illegalities committed in the matter of mining lease No. 2434 of M/s. Associated Mining Company (for brevity 'M/s. AMC'). On registration of the complaint arraigning. 20 known accused and others, after investigation, charge-sheet was submitted against 8 accused persons, in respect of offences under Sections 120B, 379, 409, 420, 447, 468, 471 and 477A of IPC and Section 13(2) read with Section 13(1)(c) & (d) of the Prevention of Corruption Act, 1988. Subsequently, additional charge-sheet is filed under Section 173(8) of Cr.P.C., in respect of offence under Section 409 of I.P.C.
3. To start with, one K.M. Vishwanath and K.M. Parvathamma were the partners of M/s. AMC. On induction of Accused Nos. 1 and 2 as partners of M/s. AMC on 31-7-2009 by way of admission deed, on the next day itself previous partners Smt. Parvathamma and Sri. K.M. Vishwanatha retired from partnership. Accused Nos. 1 and 2 took over liabilities, assets and leasehold rights over mining lease No. 2434 of M/s. AMC.
4. The allegation of the prosecution in the nutshell is, the accused persons being the partners of M/s. AMC (A1 and A2/husband and wife), Director of Mines and Geology (A3), Deputy Conservator of Forest, Bellary (A4), Personal Assistant to Al (A5), Deputy Director of Mines and Geology (A6), another private person (A7) and Range Forest Officer, Sandur (A8), conspired to commit theft of the Government properties i.e., mineral ore, thus cheated the government; they trespassed into the forest area and other areas of the Bellary District, carried out illegal mining and transported stolen iron by using the permit of M/s. AMC and sold the same for gain, without carrying any mining by A1 and A2 after taking over M/s. AMC from its earlier partners, in violation of Mines of Minerals (Development of Regulation) Act, 1957 (for brevity 'MMDR' Act). Thus, they committed criminal conspiracy, theft, cheating, criminal breach of trust, criminal trespass, forged the documents as genuine documents. They indulged in falsification of accounts and criminal misconduct, etc.
5. A2 to A7 by way of interim application under Section 227 of Cr.P.C. and A8 orally sought for their discharge when the Court was set to hear on charge.
6. Learned trial Court vide considered order, which is impugned herein, discharged A2 (wife of A1) and A3-the respondent herein from charges, however rejected relief for A4 to A8, as such there was no such prayer from A1.
7. Sri P. Prasanna Kumar, learned Special Public Prosecutor for the revision petitioner/CBI strongly assailing the order of the Court below submits that accused Nos. 1 and 2 after taking over M/s. AMC carried out mining operations in other mines located in the forest area without any authority. Their own documents, i.e., 3D Laser Survey carried out by them in the leasehold area of M/s. AMC demonstrates that A1 and A2 did not carry out any mining operations in the leasehold area of ML 2434 of M/s AMC. While the percentage of iron ore in the sample drawn from the land held under the permit by M/s. AMC is 45 to 60%, the ore supplied by them to M/s. JSW Steel Limited was having 'Fe' content more than 62%. By their illegal activities the accused Nos. 1 and 2 amassed more than 160 crores of profit.