IMPORTANT POINT
The court emphasized that serious economic offences, particularly involving public funds, necessitate thorough investigation and cannot be quashed lightly.

ORDER :

1. Crl.M.C.No.5278 of 2025 has been filed by the 3^rd accused in Crime No.4 of 2024 of VACB, Thiruvananthapuram and he seeks quashment of the said FIR.

2. Heard the learned counsel for the petitioner and the learned Public Prosecutor appearing for the VACB as well as the State of Kerala.

3. This crime was registered alleging commission of offences punishable under Sections 7 and 13(1)(o) of Prevention of Corruption (Amendment Act 2018) [`PC (Amendment) Act’ for short hereafter] as well as under Sections 409 and 120B of the Indian Penal Code (`IPC’ for short) after getting prior approval under Section 17A of the PC (Amendment) Act, by accused Nos.1 to 3. The case of the prosecution is that High Range Rural Development Society (`HRDS’ for short) is a charitable society registered under the Travancore-Cochin Literary, Scientific and Charitable Societies Registration Act District Registrar, Idukki, and the project implementing agency of DDU-GKY and Yuvakerala projects which are the Central-State Governments sponsored schemes intended to provide skill development training courses for poor youth and works for the public interest, where the 1^st accused is the Secretary, the 2^nd accused is an employee and the 3^rd accused, the petitioner herein, is an employee of the State Kudumbashree Mission, holding the official position of State Program Manager (Finance) and he is the first responsible officer for preventing the misuse of the public funds provided to the HRDS. The specific allegation of the prosecution is that all the three accused entered into a criminal conspiracy and abused their official position, thereby misappropriated Government funds allocated by the State Kudumbashree Mission to HRDS as the PIA (Project Implementing Agency) for the implementation of three Government projects, amounting to Rs.5,63,24,597/-. Out of this amount the 1^st accused misappropriated Rs.89,70,000/- (Rupees Eighty nine lakh and seventy thousand only), the 2^nd accused misappropriated an amount of Rs.77,83,000/-. Both of them misappropriated the fund under the pretext of withdrawing salary for the period from March, 2018 to April, 2023. Furthermore, some employees of HRDS, along with A1 and A2 collectively misappropriated Rs.3,74,56,200/- from the total fund of Rs.5,63,24,597/-, under the guise of salaries, despite the fund being specifically allocated for the implementation of giving skill development courses and placement assistance to poor youth of society. The 3^rd accused, who has the responsibility to prevent this defalcation and report the same to the higher authorities, failed to take any action and instead assisted the 1^st and 2^nd accused , thereby causing huge financial loss to the Government.

4. While canvassing quashment of the FIR, it is submitted by the learned counsel for the petitioner that the Government of India Ministry of Rural Development had approved the action plan of Kudumbashree (State Poverty Eradication Mission) for training and placement of a fairly large number of candidates, whereby Kudumbashree (State Poverty Eradication Mission) invited applications for implementing the projects, wherein categories like Logistics, Retail, Health Care Tourism etc. were area for imparting training by issuing trade certificate in skills like Ware House Pickers, Food and Beverages service, Geriatric Assistant etc. The petitioner herein is the State Program Manager (Finance) in Kudumbashree (State Poverty Eradication Mission) under the Government of Kerala. The Project Implanting Agency, High Range Rural Development Society was granted sanction to carry out the training and to certify the candidates under three separate and distinct project by three separate sanction orders. Thereafter, Memorandum of Understanding was executed in between Kudumbashree through its Executive Director with the