The High Court will not quash an FIR if the allegations prima facie disclose an offence related to corruption and fraud, particularly when discrepancies in reports suggest involvement.

JUDGMENT :

RAKESH KAINTHLA, J.

1. The petitioner has filed the present petition for the quashing of F.I.R. No. RC0962016A0008 dated 14.12.2016 registered at Police Station CBI Shimla, for the commission of offences punishable under Sections 13(2) & 13(1) (d) of Prevention of Corruption Act and Sections 420, 467, 468 & 471 read with Section 120B of Indian Penal Code (IPC) and Challan No.1 and 2 dated 30.12.2020 arising out of the FIR pending before the learned Special Judge (CBI Courts), Shimla, District Shimla, H.P. titled CBI vs. Hillcrest Foods. (Parties shall hereinafter be referred to in the same manner as they were arrayed before the learned Trial Court for convenience.)

2. Briefly stated, the facts giving rise to the present petition are that the petitioner was one of the employees of IL&FS Cluster Development Initiative Ltd., which was a project management agency for the scheme of Cold Chain as per the agreement dated 28.10.2020. The petitioner left the company in the year 2014. The respondent-CBI registered an F.I.R. against M/s Resources Foods Private Limited and its Directors and employees. Two challans were filed before the learned Additional Sessions Judge, CBI Court, Shimla, District Shimla, H.P. There is no material in the Challan filed by the CBI against the petitioner. The petitioner had prepared the inspection report, depicting the actual position on the ground level. The report was sent to the superior officers of IL&FS Cluster Development Initiative Ltd. The promoters of the accused-company were to get a grant-in-aid for setting up an integrated Cold chain from the Ministry of Food Processing Industries (MoFPI), Government of India. The promoters in connivance have misutilised the funds. The IL&FS Cluster Development Initiative Ltd. is not the beneficiary of the grant-in-aid. The petitioner had not even recommended the grant in aid. The petitioner is also not the disbursing authority for the grant-in-aid. The petitioner had inspected Hillcrest and Resources Foods and submitted a spot report. The petitioner is now a partner in a Dubai based Company and has nothing to do with IL& FS. The bare reading of the F.I.R. and Challan does not show the petitioner’s involvement, and continuation of the proceedings would amount to abuse of the process of the Court. Hence, the present petition.

3. The petition is opposed by CBI by filing a reply asserting that the F.I.R. was registered against Parveen Diwan, Smt. Pali Diwan and Smt. Kanan Diwan, all partners of M/s Hillcrest Foods, Village Bersan, Tehsil Nalagarh, District Solan, H.P. and Lawrence Peris and Jyot Peris, both Directors of M/s Resource Foods Pvt. Ltd., village Rajgarh, Post Shambu, Tehsil Rajpura, District Patiala (Punjab) and other unknown Government officials and private persons. The promoters of M/s Resource Foods Pvt. Ltd. had availed a grant-in-aid of Rs.9 Crores for setting up an integrated Cold Chain Project for the total cost of Rs.21 Crores. The promoters, in connivance of M/s Hillcrest Foods and certain unknown government official misutilised the funds. They assembled and dismantled the plant and machinery of M/s Hillcrest Foods after availing a grant-in- aid of Rs.7 Crores. Two separate charge sheets have been filed against the petitioner. The Ministry of Food Processing Industries (MoFPI) had engaged M/s IL& FS Clusters Development Initiative Ltd. as Programme Management Agency (PMA) to assist in the implementation of the scheme for Cold Chain. It was to assist MoFPI in inviting Expression of Interest, and evaluation/appraisal of techno-feasibility reports. The grant-in-aid was released in instalments