The legal principle established is that the subsequent grant of sanction for prosecution without fresh material, after an earlier refusal, is illegal and can only be based on new evidence collected by the investigating agency.

By the Court.-Heard learned counsel appearing for the petitioner and learned counsel appearing for the CBI.

This application has been filed for quashing of the entire criminal proceeding of R.C. Case No. 19-A of 2008(R) including the order dated 30th October, 2010 (Annexure-3) whereby and where under learned Special Judge, CBI, Ranchi, has taken cognizance of the offences punishable under Section 120-B read with Sections 420, 468, 471 of the Indian Penal Code and also under Section 13(2) read with Section 13(1)(d) of the Prevention of Corruption Act.

2. Before adverting to the submissions advanced on behalf of the Opp. Parties, the facts of the case giving rise to this application need to be taken notice of.

3. The Addl. Superintendent of Police, CBI, ACB, Ranchi lodged a case alleging there that a decision was taken by the CMD, Mecon to have open tender for the work of repair and painting of the buildings at Shyamali Township but this petitioner, in connivance of Mr. Tapan Kumar Ghosh, G.M.(Civil Structural and Architectural), Mr. Aurn Kumar Sharma, E.D. (Commercial and Power) and U. Chakraborty, Dy. G.M. I/c (Civil Section) got the word 'open' changed dishonestly as 'limited' without taking approval from the competent authority for the purpose of showing undue favour to Contractors to whom the works were allotted. Thus it has been alleged that Sri D.K. Singh, Dy. GM (Civil), Tapan Kuamr Ghosh, G.M. (Civil, Structural and Architectural), Arun Kumar Sharma, ED (Commercial and Power), U. Chakraborty, Dy. G.M. lie (Civil Section), abused their official position and entered into a criminal conspiracy with the private contractors M/s J.P. Rai and P.K. Mishra, and in furtherance of the said criminal conspiracy, undue favour was extended to the private contractors namely Mis J.P. Rai and M/s P.K. Mishra, by way of changing the mode of tender from open to limited and also allowing the modification in the item No. C-7, also in furtherance of the said criminal conspiracy, Sri Jagabandhu Banerjee, Sr. Manager (Civil), Ram Bachan Singh, Sr. Manager (Const.), Shaukat All, Manager (Drawing), D. Singh, Manager (Drawing I Civil), Lal Deo Singh, Manager (Const.). Sharad Jaipuriar. AGM (Civil), and S.E. Haque, D.P. Officer, Project Cell, all of MECON Ltd. falsely certified the Running Account Bills/Measurement Sheets reflecting work of dismantling and ratio of sand and cement as 1:4 in favour of M/ s J. P. Rai and M/s P.K. Mishra and. thereby the petitioner has committed offences punishable under Section 120-B read with Sections 420, 468, 471 of the Indian Penal Code and also under Section 13(2) read with Section 13(I)(d) of the Prevention of Corruption Act.

4. After completion of the investigation, the CEI asked for the order relating to sanction for prosecution by the competent authority Le. Chairman-Managing Director, Mecon, Shyamali, Ranchi who after going through the materials placed by the CEI, refused to grant sanction vide its order dated 20.02.2010 by holding, which reads as follows:-

The lapses on the part of Shri D.K. Singh, Deputy General Manager, MECON, Ranchi (Accused No. A-1) are more of the nature of procedural lapses and no conclusive evidence could be seen that there had been any conspiracy as alleged to change the decision of calling 'open' tender to that of 'limited tender'. Further, the Inquiry Officer's conclusion in his report dated 01.05.2008 also clearly indicates that reasonable competition was available in the tendering process and no malafide intentions were evident Accordingly, the report of the Inquiry Officer was accepted and as recommended by the Inquiry Officer, Shrl D.K Singh has already been issued a Letter of Caution.

5. Subsequently, after seven months, the CEI on the advice of the CVC, again referred the matter to have sanction for prosecution by another person-Chairman-cum-Managing Director-In-charge, who vide its order dated 30th September, 2010, granted sanction for prosecution.

6. Accordingly, cognizanc