Point of Law: Once charge sheet is filed, merely because Investigating Agency had no jurisdiction to investigate matter, charge sheet cannot be quashed.

ORDER :

An important question relating to the authority of Vigilance and Anti-Corruption Bureau (for short, 'VACB') of the State to register the crime and investigate the offences under the Prevention of Corruption Act, 1988 (for short, 'the P.C.Act') committed by the employees of the Central Government arises for consideration in these Criminal Revision Petitions.

2. The VACB, Kottayam unit registered a crime as V.C.No.5/2010/KTM against four accused persons. After completing the investigation, they filed final report at the court of Enquiry Commissioner and Special Judge, Kottayam (for short, 'the court below') alleging offences punishable under Sections 13(1)(c) and (d) r/w 13(2) of the P.C.Act and Sections 120-B, 420, 468, 471 and 204 of the IPC.

3. The prosecution allegation in short is as follows :

The accused No.1 is the Village Extension Officer, Thalayolaparamba and the Implementing Officer of Project No.137/2006 of Thalayolaparamba Grama Panchayat. Accused Nos. 2 to 4 are the officials of North Malabar Gramin Bank, Thalayolaparamba Branch. The accused Nos. 1 to 4 conspired together with the intention to cheat Thalayolaparamba Grama Panchayath and the beneficiaries of the project No.137/2006. In pursuance of the conspiracy, the accused No.1 misappropriated the project amount of Rs.1,85,000/- by forging signatures in the pay orders issued in the name of the beneficiaries. The accused Nos. 2 to 4 without ascertaining the beneficiaries passed nontransferable pay orders and enabled accused No.1 to derive undue pecuniary advantage during the period from 27/02/2006 to 02/01/2007.

4. The court below took cognizance of the case as C.C.No.35/2014. The accused Nos. 2 to 4 filed three separate applications for discharge under Section 239 of Cr.P.C. mainly on the ground that the VACB, Kottayam had no authority or jurisdiction to register the crime and conduct the investigation in as much as they are the employees of the Central Government. The court below accepted the said contention and discharged them as per the common order dated 06/02/2020. The said order is impugned in these revision petitions filed by the State.

5. I have heard Sri.A. Rajesh, the learned Special Prosecutor for VACB, Smt. Shameena Salahudheen, the learned counsel for the accused Nos.2 and 3 (respondent in Crl.Rev.Pet Nos.422 & 626 of 2022) and Sri. A.Arunkumar, the learned counsel for the accused No.4 (respondent in Crl.Rev.Pet No.332 of 2023).

6. The learned Special Public Prosecutor for VACB Sri.A.Rajesh submitted that the P.C Act does not exclude or prevent the State Police or a Special Agency of the State like VACB from investigating cases relating to corruption committed by the public servants of the Central Government and hence, the impugned order passed by the court below is unsustainable. The learned Special Public Prosecutor further submitted that the decision in Vijayan Kottari v. State of Kerala (2016(3) KHC 749) relied on by the Court below to rest its conclusion is no longer good law. The learned Public Prosecutor relied on the decision of the Apex Court in Sharma A.C. v. Delhi Administration [1973 KHC 504], the decision of the Full Bench of the Madhya Pradesh High Court in Arvind Jain v. State of Madhya Pradesh [2018 KHC 4261], the decision of the Divsion Bench of the Madhya Pradesh High Court in Ashok Kumar Kirtiwar v. State of Madhya Pradesh [2001 KHC 2396] and the decision of the Single Bench of the Andhra Pradesh High Court in G.S.R. Somayaji (Dr.) v. State through CBI [2002 KHC 2104] in support of his submissions.

7. On the other hand, the learned counsel for the accused/respondent submitted that the Gramin Banks are governed by the policies of the Central Government, the State Government has no control or power on the affairs of the North Malabar Gramin Bank, and the accused Nos 2 to 4, being officers of the North Malabar Gramin Bank, CBI, Central Vigilance Commission or such other Central Government Authority alone has authority and jurisdiction