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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 02^nd DAY OF AUGUST, 2022

BEFORE

THE HON'BLE MR. JUSTICE M. NAGAPRASANNA

CRIMINAL PETITION No.685 OF 2022

BETWEEN:

SRI V.KRISHNAREDDY

S/O VENKATARAMANA REDDY

AGED ABOUT 59 YEARS

MANAGING DIRECTOR

NANDINI MILK PRODUCTS

DAIRY CIRCLE

BENGALURU 3 560 029

RESIDING AT NO.10

7^TH WARD, MALAGALU VILLAGE

BENGALURU - 56216

...PETITIONER

(BY SRI K.SHASHIKIRAN SHETTY, SENIOR ADVOCATE

A/W SRI RANGANATH R., ADVOCATE)

AND:

THE STATE OF KARNATAKA

BY ANTI-CORRUPTION BUREAU POLICE

CHIKKABALLAPURA 3 562 101

REPRESENTED BY

STATE PUBLIC PROSECUTOR

HIGH COURT OF KARNATAKA

BENGALURU 3 560 001.

...RESPONDENT

(BY SRI P.N.MANMOHAN, SPL.PP)

R

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THIS CRIMINAL PETITION IS FILED UNDER SECTION

482 OF CR.P.C., QUASH THE CR.NO.7/2021 REGISTERED

BY RESPONDENT POLICE ON 23.11.2021 FOR THE

ALLEGED OFFENCES P/U/S 13(1)(b) R/W 13(2) OF THE

PREVENTION OF CORRUPTION ACT, PENDING ON THE FILE

OF HONOURABLE PRINCIPAL DISTRICT AND SESSIONS

JUDGE, CHIKKABALLAPURA AGAINST THE PETITIONER.

THIS CRIMINAL PETITION HAVING BEEN HEARD AND

RESERVED FOR ORDERS ON 12.07.2022, COMING ON FOR

PRONOUNCEMENT THIS DAY, THE COURT MADE THE

FOLLOWING:-

ORDER

The petitioner in the subject petition calls in question

registration of crime against him in crime No.7/2021, for

offences punishable under Sections 13(1)(b) read with

13(2) of the Prevention of Corruption Act, 1998 (8the Act9

for short) pending before the Principal District and

Sessions Judge at Chikkaballapura.

2. Shorn of unnecessary details, facts in brief, are as

follows:-

The petitioner at the relevant point in time was

working as a General Manager of Nandini Milk Products, a

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unit of Karnataka Cooperative Milk Producers9 Federation

Limited (8KMF9), the apex body for cooperative movement

in Karnataka. The petitioner joins the service of KMF in the

year 1997, as a Technical Officer and from time to time

had been promoted to higher echelons of office. The issue

in the case at hand is not with regard to the service

condition of the petitioner.

3. A Police Inspector of Anti-Corruption Bureau,

Central Zone, Bangalore (8ACB9) submits a source report to

the Superintendent of Police on 20-11-2021. After

thorough scrutiny of the documents of the petitioner with

regard to assets, liabilities and annual returns, he holds

that disproportionate assets of the petitioner were to the

tune of 107.70%. Based upon the said source information

report, a crime comes to be registered against the

petitioner on 23-11-2021 for offences punishable under

Section 13(1)(b) read with 13(2) of the Act. The house

and the property of the petitioner were searched and

investigation is continued and is said to be in progress. At

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that point in time, the petitioner knocks the doors of this

Court in the subject petition seeking quashing of

registration of crime itself in Crime No.7 of 2021.

4. This Court by its order dated 09-03-2022 had

granted an interim order of stay on a preliminary

submission made by the learned counsel representing the

petitioner that employees of KMF would not be public

servants within its meaning as obtaining under the Act and

therefore, further investigation in the case of the petitioner

has been stalled.

5. Heard Sri K. Shashikiran Shetty, learned senior

counsel

appearing

for

the

petitioner

and

Sri P.N.Manmohan, learned Special Public Prosecutor for

the respondent.

6. The learned senior counsel would urge a solitary

contention that the petitioner being an employee of KMF

throughout his career as he joins as Technical Officer, and

at the relevant point in time, was working as General

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Manager and therefore, would not become a public servant

within the meaning of 8public servant9 under the Act. He

further submits that the very registration of crime by the

ACB was one without jurisdiction and any further steps

taken by the ACB