IN THE HIGH COURT OF KARNATAKA AT BENGALURU
M.I.ARUN, J.
Mahantesh Bilagi S/o Gurubassappa – Appellant
Versus
The State of Karnataka – Respondent
Criminal Petition Nos. 11571, 11573 of 2025
Decided On : 02-12-2025
| Table of Content |
|---|
| 1. introduction of parties and context. (Para 1 , 2 , 3) |
| 2. overview of allegations regarding tender process. (Para 4 , 5 , 6) |
| 3. details of infractions in the tender process. (Para 7 , 8 , 9) |
| 4. arguments of accused pertaining to procedural violations. (Para 10) |
| 5. observations on public servant protections and procedures. (Para 12 , 20) |
| 6. court's reasoning on allegations and lack of criminality. (Para 19 , 29 , 30) |
| 7. final order of quashing proceedings. (Para 34) |
ORDER :
1. Aggrieved by the order dated 23.07.2025 passed in PCR No.Nil of 2025 (now numbered as PCR No.24/2025) by the LXXXI Additional City Civil and Sessions Judge, Bengaluru (CCH 82), accused No.1 has preferred Crl.P.No.11573/2025 and accused Nos.3 and 4 have preferred Crl.P.No.11571/2025.
2. For the sake of convenience, the parties are referred to as per their status before the trial Court.
3. Accused No.1 is the Energy Minister for the State of Karnataka and Chairman of Bengaluru Electricity Supply Company Limited (BESCOM). Accused No.3 was the Managing Director of BESCOM and accused No.4 was a Director of BESCOM. Petitioners are Members of Legislative Assembly from the opposition party in the State of Karnataka.
4. BESCOM invited tender for selection of AMI Common Service Provider for Sale of Smart Meters to prospective consumers in BESCOM Jurisdiction on contract award basis in retail outlets for arranging power supply to new connections (including temporary installations) for a period of 5 years and Supply, Implementation, Commissioning & Maintenance of the common AMI System for Smart meters for a period of 10 years in all the ESCOMs of Karnataka. The same has been awarded in favour of one M/s.Rajashree Electricals Private Limited, Davangere. On the allegations that a criminal conspiracy was hatched at the behest of accused No.1 along with the other accused to favour the successful bidder in order to unlawfully enrich accused No.1, a private complaint has been lodged by the complainants by way of PCR No.Nil/2025, before the Special Court nominated to deal with criminal cases related to former and elected MP's / MLA's in the State of Karnataka. Before filing of the said private complaint, the complainants have approached the Lokayuktha Police and also sought permission from His Excellency, the Governor of the State of Karnataka to launch prosecution against the accused.
5. It is alleged that the entire tender process has been designed so that the contract is awarded in favour of the successful bidder (M/s.Rajashree Electricals Private Limited). It is alleged that there has been an illegality committed in framing eligibility methods of valuation and terms and conditions in the tender document. It is also alleged that there is a illegality in evaluation of bids. Illegality is also alleged in the final decision taken by the BESCOM in awarding the contract in favour of the successful bidder and also in incorporating the agreed terms and conditions in the contract.
6. The allegations against the accused made in the complaint are as follows:-
"8. The complainants submit that, it is to be noted that the following infractions were carried out by BESCOM's various committees and officials in the B.E.S.C.O.M smart meter tender to prop-up the prima facie shell of the criminal conspiracy M/s. Rajashree Electrical Davangere and keep other vendors out of the bid:-
I. The Tender value was reduced to Rs.997 Crores even though the actual value was more than Rs.5,296 Crores over a 10-year period.
II. The Estimated Annual Payment was reduced to Rs. 107.11 Crores even though the actual value was more than Rs.1,059 Crores.
III. Illegally & subjectively allowing and disallowing the use of credentials of sub- contracting to supplement the qualifying credentials or lack of it of the prime contractor. To ensure that other Nationally and internationally capable firms would not qualify to participate in the tender thereby, foregoing the need for Global Tenders to ensure bids were rest
A trial court cannot order an investigation against public servants without prior approval as required by law, and mere allegations of misconduct in tender processes do not necessarily constitute cri....
The main legal point established in the judgment is that the violation of financial rules, sham tender process, and evidence of conspiracy to favor a specific contractor constituted a prima facie cas....
Procedural violations in public procurement can constitute criminal misconduct under the Prevention of Corruption Act, highlighting the need for transparency and adherence to regulations in awarding ....
The main legal point established in the judgment is that conspiracy can be proven by circumstantial evidence, and the material on record must be evaluated to determine the existence of the ingredient....
In tender-related fraud cases, a conspiracy can be inferred from circumstantial evidence, allowing for charge framing even without direct evidence.
The need for a demand or request for a valuable thing or pecuniary advantage from the public servant to establish an offence under Section 13(1)(d) of the Prevention of Corruption Act, 1988.
At the stage of considering charges, the accused cannot rely on materials by way of defense, and the power under Section 482 of the Code of Criminal Procedure cannot be used for a mini trial.
Where allegations in FIR do not constitute a cognizable offence but constitute only a non-cognizable offence, no investigation is permitted by a police officer without an order of a Magistrate as con....
At the stage of framing the charge, the truth, veracity, and effect of the evidence proposed by the prosecutor are not meticulously judged.
Section 14 of Act reads as general rejection of tenders.
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