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2017 Supreme(Ori) 1181

IN THE HIGH COURT OF ORISSA : CUTTACK
S.K. SAHOO, J.
Sri Govinda Nag – Petitioner
Versus
State of Odisha (Vig.) – Opp. Party
ABLAPL No. 7909 of 2017
Decided On : 11-12-2017

Advocates Appeared:
For the Petitioner: Mr. Satya Sundar Kanungo
For the Opp. party : Mr. Niranjan Moharana Addl. Standing Counsel (Vigilance)

The main legal point established in the judgment is the gravity of the accusation and the role played by the petitioner in causing a substantial loss of public funds, prima facie showing misutilization of official position, justifying custodial interrogation and rejecting the anticipatory bail application.

Headnote:

Pre-Arrest Bail - Corruption - Prevention of Corruption Act, 1988, Indian Penal Code - Section 13(2), 13(1)(c)(d), 409, 120-B - The court discussed the provisions of the Prevention of Corruption Act, 1988 and Indian Penal Code, including the powers and responsibilities of the Chairman and Secretary of the Market Committee, and the approval process for budgetary provisions. The court highlighted the misuse of official position, excess expenditures, and lack of approval for purchases, leading to a prima facie case of misutilization of public funds.

Fact of the Case:

The petitioner, Secretary of the Regulated Market Committee, Sambalpur, sought pre-arrest bail in a corruption case involving excess expenditures and misuse of official position. The Vigilance Cell alleged that the petitioner showed undue official favor to suppliers, causing a loss of public funds.

Finding of the Court:

The court found that the petitioner, as Secretary, exceeded budgetary provisions for purchases without proper approval, and abused his official position to favor suppliers, leading to misutilization of public funds. The court also noted the lack of cooperation with the investigation and the potential for tampering with evidence.

Issues: The issues involved misuse of official position, excess expenditures, lack of approval for purchases, and the potential for tampering with evidence.

Ratio Decidendi: The court held that the gravity of the accusation and the role played by the petitioner in causing a substantial loss of public funds prima facie showed misutilization of official position, justifying custodial interrogation and rejecting the anticipatory bail application.

Final Decision: The court rejected the anticipatory bail application, emphasizing the seriousness of the accusation, the lack of cooperation with the investigation, and the potential for tampering with evidence.

JUDGMENT :

S.K. SAHOO, J.

The petitioner who was the Secretary, Regulated Market Committee (hereafter ‘R.M.C.’), Sambalpur has filed this application under section 438 of Cr.P.C. for pre-arrest bail in connection with Cuttack Vigilance Cell P.S. Case No.12 of 2017 corresponding to V.G.R. Case No.10 of 2017 pending in the Court of learned Special Judge, Vigilance, Sambalpur for offences punishable under section 13(2) read with section 13(1)(c)(d) of the Prevention of Corruption Act, 1988 and section 409 read with section 120-B of the Indian Penal Code.

2. On 29.04.2017 Mr. D.D. Sethi, D.S.P., Vigilance Cell, Cuttack lodged the first information report before the Superintendent of Police, Vigilance Cell, Odisha, Cuttack indicating therein that on the allegation that the petitioner along with two other Ex-Secretaries, R.M.C., Sambalpur have shown undue official favour to the suppliers towards purchase/expenditures of funds under the heading of dead stock furnitures, grading equipments and maintenance of weighbridge and weighing scale exceeding the budget provision during the year 2013-14, 2014-15 and 2015-16, the Vigilance enquiry was taken up and so far as the petitioner is concerned, the enquiry revealed that during the period of 2014-15 and 2015-16, the petitioner with an ulterior motive, by abusing his official position in connivance with different suppliers showed undue official favour to them by way of placing order towards purchase of dead stock furniture, grading equipments and maintenance of weighbridge, weighing scale to the tune of Rs.1,54,88,870/-as against the budgetary provision of Rs.32,00,000/-without taking the approval of the OSAM Board and without assigning any reason which was in an excess of Rs.1,22,88,870/. It is further indicated in the F.I.R. that the petitioner and the other Ex-Secretaries have abused their official position with an ill intention to favour different suppliers without assigning any valid reason in connivance with the suppliers, made purchases/expenditures exceeding the budgetary provision showing undue official favour to the concerned Supplying Agencies and passed order for payment with ulterior motive to get pecuniary advantages for themselves and others.

On the basis of the first information report, the Superintendent of Police, Vigilance Cell, Odisha, Cuttack directed the Officer in charge, Vigilance Cell P.S., Cuttack to register the case and accordingly the case was registered.

3. Mr. Satya Sundar Kanungo, learned counsel appearing for the petitioner contended that the functioning of the every Market Committee is done as per the provisions provided under Chapter-III of the Odisha Agricultural Produce Markets Rules, 1958 (hereafter ‘1958 Rules’). In terms of Rule 25 of the 1958 Rules, the Chairman is the controlling and supervising officer of the Market Committee, who shall, inter alia, keep a watch over the financial and administrative matter of the Market Committee. Chairman’s detail power has been narrated under Rule 25(2)(a) to (e) of the 1958 Rules. Similarly Rule 25-A of the 1958 Rules envisages that every Market Committee shall have a Secretary and Rule 25-A(2)(xii) mandates the Secretary to make disbursement of all money lawfully payable by the Market Committee, provided that if individual disbursement exceeds Rs.500/-, it shall be passed by the Chairman. It is contended that the Sub-Collector, Sambalpur is the Chairman of the R.M.C., Sambalpur and therefore, the entire allegation of abuse of official position is out and out false as the petitioner had no such power to show any undue favour to anybody to enrich himself illegally. It is further contended that whatever expenditures were made, was based on the decision of the meeting of District Level Paddy Procurement Committee (hereafter ‘DLPPC’) which was attended by all the M.L.As, M.P. and Zilla Parishad Chairman of the locality under the chairmanship of the District Magistrate-cum-Collector, Sambalpur wherein the expenditure budg














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