1. This application has been filed for quashing of the entire criminal-proceeding of R.C. No.11 (A) of 2009-AHD-R including the order dated 10.8.2011 whereby and whereunder cognizance of the offences punishable under Sections 120B, 420, 467 468, 471 of the Indian Penal Code and also under Sections 13(1)(c), 13(1)(d) read with Section 13(2) of the Prevention of Corruption Act has been taken against the petitioner.

2. It is the case of the prosecution that during financial year 2007-08, the Health Department, Government of Jharkhand having invited tenders purchased medicines on fixed prices under the scheme known as NRHM .For the financial year 2008-09 also medicines were purchased after inviting tenders on the rate approved for the financial year 2007-08 but by that time 'Purchase Preference Policy' had come into force whereby certain medicines were to be purchased compulsorily from the Government manufacturing companies and if the medicines would have been purchased, fixed percentage of discount was admissible but medicines were purchased ignoring the said policy completely, as a result of which, enormous pecuniary loss was caused to the State of Jharkhand whereas public servants as well as private suppliers received wrongful pecuniary gain.

3. It has been further alleged that medicines/equipments/appliances/sundry items to be used in hospital were purchased worth crores of rupees from M/s. Satya Sai Agencies, M/s. J.R. Pharma, M/s. Kalyan Enterprises, M/s. Medhavi Associates, M/s. P.D.P.L, M/s. Annu Enterprises, M/s. Endo Lab, M/s. Hindustan Antibiotics, M/s. U.P.D.P.L, M/s. Savitri Sales, M/s. Hindustan Latex, M/s. Unique Pharma, M/s. Laxmi Medial Agencies, M/s. G.R. Associates, M/s. Prabhat Drug House, M/s. Gaurav Enterprises, M/s. Plasti Surge India Pvt. Ltd, M/s. Nicholas Piramal India Limited and also from M/s. Nand Kishore Fogla but these purchasers were not at all need based, as quantity of medicines and medical equipments/instruments which were purchased were far more than the actual requirement.

4. In this regard it has been alleged that Nitrozen Oxide Cylinders of 510 liters capacity were purchased in huge quantity which were to be supplied to the PHC/CHC where Anaesthetists are posted but in the State of Jharkhand hardly there is any PHC/CHC where Anaesthetist is posted and as such, it remained lying unused. Similarly, some of the medicines were purchased which were being rarely prescribed by the Doctors. Likewise, some instruments including Fogger Machine (which is subject matter in this case) were purchased many times more than the actual requirement.

5. Further it has been alleged that budget allocation for purchase of Sahiyya Kit, medicines and equipments were far less than the amount invested in purchasing those items. Out of the budget allocation made by the State government, 50,000 units of Disinfectant Microgen-D 125, 300 units of Fogger Machine and dispenser have been purchased for Rs.14.74 crores, Rs.5.15 crores and Rs.19,57,000/- respectively and that medicines and medical equipments worth Rs.48.58 crores have been purchased from M/s. Nand Kishore Fogla which firm was not authorized dealer/supplier of medicines and medical equipments. Those medicines and equipments have been purchased at an exorbitant rate and in excess without ascertaining the requirement and that too by procuring false documents to show excess consumption of requirement of medicines and equipments.

6. Thus, it has been alleged that the then Secretary, Health Department, Government of Jharkhand, State RCH Officer, Namkum, Ranchi and other officials of the Health Department in connivance with suppliers by abusing their official positions as public servants, fraudulently and dishonestly purchased medicines/medical equipments/ appliances/sundry items worthRs.1.30, 50, 79, 951.74 from 19 suppliers without having such requirement and beyond the fund allocation allotted to 'National Rural Health Mission (NRHM)”.

7. On such allegation, a case w