The court clarified that substantial misappropriation involving private entities necessitates a superior investigative authority for effective resolution.

JUDGMENT

Petitioner is a Private limited company. Imputing allegations of criminal breach of trust and misappropriation by the first accused, a Manager of the petitioner company in its office in Kochi, in association with the other accused, and that too after hatching a criminal conspiracy by all of them, wrongful loss of Rs.10,00,000/- (Rupees Ten Lakhs Only) was caused to the company, is its case for filing a complaint before the Judicial First Class Magistrate-I, Ernakulam. That complaint being referred to police for investigation and report a crime was registered against the accused persons named for offences punishable under Sections 406 , 408, 409, 418, 420, 465, 468, 471, 477 and 120B of the Indian Penal Code . Though such crime was registered nearly one year ago investigation thereof is not effectively being carried on, is the grievance espoused in the original petition to invoke the extraordinary jurisdiction of this court for issuing a writ/direction/order to hand over and entrust the investigation of the crime to the Central Bureau of Investigation or Crime Branch. Learned Government Pleader after getting instructions reports that investigation is being proceeded properly and effectively and the materials collected so far indicate reason to suspect the complicity of some of the accused persons over some of the offences covered by Ext.P2 F.I.R. registered in the crime. Misappropriation of an amount of Rs.10,00,000/- (Rupees Ten Lakhs Only) being the allegation raised, as per the government notification issued investigation of the crime has to be handed over to the Vigilance and Anti Corruption Bureau. Circular No.38 of 2010 issued by the Director General of Police taking into account the government notifications issued with respect to investigation over offences involving criminal misappropriation exceeding a particular limit, has been handed over to me for my perusal by the learned Government Pleader. The aforesaid circular would indicate where the misappropriation of public money or properties amounting to or value of Rs.50,000/- (Rupees Fifty Thousand Only) or more belonging to the State Government or to institutions under the control of the State Government, then, the investigation has to be conducted by the Vigilance and Anti Corruption Bureau. However in the later circular, Circular No. 38 of 2010 referred to above, it has been made clear that where financial misappropriation is above the sum of Rs.5,00,000/- (Rupees Five Lakhs Only) then the investigation has to be done by the Vigilance and Anti Corruption Bureau. Even if that be so, the reading of circular would indicate that it will have applicability only where misappropriation of public money or properties belonging to the government or under the control of the government. Where criminal misappropriation is over the property of a private person or private company there is no need to transfer the investigation to the Vigilance and Anti Corruption Bureau. However the quantum involved in the crime registered with respect to the criminal misappropriation of funds imputed can definitely be taken note of in holding that the case requires investigation by a superior Police Officer, which in the present case is now being conducted by the Sub Inspector of Police, or by the Crime Branch which has got a special wing for dealing with economic offences. In the given facts of the case and taking note of the submissions made by the Government Pleader that the investigation so far conducted has unearthed some materials supporting the allegations, to some extent made by the complainant, I find continuation of the investigation by the Crime Branch will be more appropriate and be needed to advance the ends of justice. In that view of the matter there will a direction to the second respondent to hand over the investigation of the Crime No.1316 of 2011 to the Crime Branch, Crime Investigation Department, who on taking over such investigation shall complete it at the earliest.

P