The sanction for prosecution under Section 19 of the Prevention of Corruption Act must be granted by the authority competent to remove the public servant from his office.

G.S. Chahal, J. - Avinash Chander Sharma by means of this petition under Section 482 of the Code of Criminal Procedure seeks quashing of the police report dated 19-7-1989 Annexure P-1, Charge-sheet, dated 20-2-1990 Annexure P-2 and the proceedings arising out from the police report and the charge-sheet.

2. The facts in the basis of which the prosecution was launched may be briefly stated :-

"Naib Singh complainant made complaint to Ranjit singh, Inspector, State Vigilance Bureau, Ambala, that his father Dharam Singh had taken a loan of Rs. 5000/- from the Haryana Khadi Gram Udyog, Ambala for installation of lime-kil, on 24-1-1985. This amount was to be repaid in three instalments and he had paid two instalments and only one instalment was remained to be paid which fell due on 24-1-1990. On 10th May, 1989, the petitioner who was working as Junior Auditor in the office of Khadi Gram Udyog visited Sadhaura and gave out threats to the complainant that unless bribe of Rs. 500/- was paid he will make adverse report and also inform the bank to effect recovery alongwith interest at the rate of 20%. Under this threat, Nasib Singh paid a sum of Rs. 100/- to the petitioner and promised to pay the balance of Rs. 400/- to him on 29th May, 1989. The petitioner also gave threat that if this fact was disclosed to any one he would make the case against him and send it to Chandigarh. Since Naib Singh did not want to pay illegal gratification he made his complaint to the Vigilance Inspector. The Inspector after taking currency notes of Rs. 400/- from Naib Singh treated them with phenol-hethline powder and also affixed his own initials and gave them to Singh. The Inspector after obtaining permission from the Deputy Commissioner, Ambala, for conducting investigation, associated Mr. Subash Goel, Magistrate and carried out the raid. On the basis of the evidence collected, the petitioner was sent up for trial and he was charged for offences under Section 7 and 13(2) of the Prevention of Corruption Act."

3. The petitioner has challenged the prosecution on the basis that no valid sanction had been granted for his prosecution. The petitioner was employed as Junior Auditor with the haryana Khadi Gram Udyog and Village Industries Board and as per Appendix C to the Haryana Khadi and village Industries Board (Service) Regulations, 1976, an employee can be dismissed from service, which may or may not be disqualification from future employment only by the Board. The sanction for prosecution in the present case was granted by the Chief Executive of the Board vide Annexure P-3. The state has claimed sanction order to be valid on the basis that the Chief Executive has been clothed with certain powers vide Annexure P-8, the same reads as follows :-

"Item No. 1 :- Regarding delegation of disciplinary powers to Chief Executive - Under regulation 31-A, Board may delegate, except the power to make regulations, its power to Chief Executive or Member Secretary. The relevant rule is as blow :-

"The Board may, by resolution direct that any power exercisable by it under this Act or the regulations made there under, except the power to make regulations may also be exercised by the Chief Executive or Member Secretary as the case may be of the Board."

In view of the above cited Rule it is proposed that the Chief-Executive of the Board may be delegated the powers to initiate the departmental enquiry against class III and class IV of the Board pending enquiry to suspend them, to appoint regular enquiry officer if the punishment to be inflicted upon the aforesaid employer is higher than censure the matter shall be placed before the Board.

In the light of the facts cited above, matter is placed before the Board for consideration and orders.

Regulation approved."

At a subsequent stage the police having asked for a clarification about sanction a resolution was put forth stating therein that the sanction accorded by the Chief Executive may be approved and vide proceedings A