The court upheld the Special Judge's cognizance based on prima facie evidence in a corruption case, emphasizing the legal significance of sanction against the accused.

JUDGMENT :

Chittaranjan Dash, J.

1. The legality, propriety and correctness of the order dated 28.09.2024 passed by the learned Special Judge, Vigilance, Cuttack in T.R. Case No.17 of 2019 has been called in question in this Revision.

2. The background facts of the case are that the Inspector, Vigilance Cell, Cuttack, alleged charges of corruption against the Petitioner and others in relation to the misuse of coal linkage allotted by the Government at subsidised rates to non-existent firms, in connivance with officials of the District Industries Centre (DIC), Jagatpur, and the Odisha Small Industries Corporation (OSIC), Cuttack. According to the Petitioner, the Government of India formulated a new Coal Distribution Policy vide Resolution No.23011/4/2007 dated 18.10.2007, under which State Governments were requested to assess the genuine requirements of small and medium sectors such as smokeless fuel units, brick kilns, and coke oven units, on a transparent and scientific basis. The Policy envisaged distribution of coal to small-scale industries whose requirements were less than 4200 MT per year, and who otherwise had no access to purchase coal or conclude Fuel Supply Agreements (FSA) with companies. Such industries were to draw coal through State-notified agencies such as the National Cooperative Consumer Federation (NCCF) and the National Small Industries Corporation (NSIC), as suited to each State Government. Consequently, by Notification dated 13.08.2008, the State Government declared the Odisha Cooperative Consumer Federation (OCCF) as the State Nodal Agency for distribution of coal to MSMEs in the State. The Odisha Coal Distribution Policy specified the procedure for such distribution. Following its appointment, OCCF engaged a marketing agent, namely M/s. Vinayak Mineral. As per the laid down procedure, eligible MSME units, upon registration and verification by the DIC, were to be recommended to OCCF, which would thereafter place orders with Mahanadi Coalfields Limited (MCL) by depositing the requisite amount, pursuant to which MCL would issue road delivery orders in favour of OCCF for onward supply to MSMEs.

It is alleged that officials of the DIC, Jagatpur, recommended five fake and non-existent MSMEs for allotment of coal to OCCF, without following the mandatory formalities envisaged in the Policy, and without verification of their existence, operations, or annual installed capacity. On the basis of such recommendations, OCCF placed booking orders with MCL from time to time and, upon receipt of road delivery orders, supplied coal through its marketing agent to those MSMEs. The allegation is that the Government officials, along with private persons, committed criminal misconduct by facilitating sale of coal to fictitious MSMEs, thereby deriving unlawful pecuniary gain to the tune of Rs.12,90,069.94, at the cost of deserving MSMEs. Acting on these allegations, the Inspector, Vigilance Special Cell, registered Cuttack Vigilance P.S. Case No.45 of 2010 dated 30.06.2010 under Section 13 (2) read with (1)(d) of the Prevention of Corruption Act, 1988, and Sections 420 /468/471/120-B of the INDIAN PENAL CODE . Upon completion of investigation, charge-sheet No.11 of 2018 was submitted under (2) read with (1)(d) of the P.C. Act against officials of the DIC and OCCF. The gravamen of the charge-sheet is that bogus firms were identified by the DIC and supplied with coal procured at subsidised rates, which was then diverted to the open market. The Government, upon perusal of the charge-sheet, declined to accord sanction for prosecution against the then General Manager, DIC, Jagatpur, Shri Sitikanta Sarangi, and the then Assistan