ORDER

[Crl.MC Nos.3713/2018, 3315/2018]

These Crl.M.Cs. are filed by the accused in Crime No.1175/2017 of Munnar Police Station, which is now pending as C.C. No.186/2018 before the Judicial First Class Magistrate Court, Devikulam. Crl.M.C. No.3315/2018 is filed by the accused Nos.1 and 2 and Crl.M.C. No.3713/2018 is filed by the 3rd accused. For the purpose of convenience Crl.M.C. No.3315/2018 is treated as the leading case and the documents are referred to in the sequence as in the said Crl. M.C.

2. The facts which led to the registration of the aforesaid crime are as follows: On 17.11.2017, the then Minister of Public Works Department conducted an inspection in the Rest House run by the Public Works Department at Munnar. During the said inspection, it was found that the responsible officers of the Public Works Department were not present therein, and the Occupation Register of the Rest house was found kept in the nearby hotel named “Mermaid Hotel”, which is run by a company in which the 3rd accused is the Managing Director. Immediately the matter was informed to the Police and the Police party came. Based on the same Annexure III First Information Report was registered against the petitioners herein for the offences punishable under Sections 408, 409, 465, 468, 471, 201, 420 read with Section 34 of the Indian Penal Code. An investigation was conducted and based on the same, Annexure IV Final Report was submitted against the accused. The 1st petitioner was the Assistant Engineer, whereas the 2nd petitioner was Assistant Executive Engineer of the Public Works Department. The 3rd accused is the Managing Director of the company running the hotel named “Mermaid Hotel.”

3. The allegation in the Final Report is that, with the intention to cheat and to cause unlawful loss to the Government, the accused Nos.1 and 2 have entrusted three rooms of the PWD rest house to the 3rd respondent to rent it out to 3rd persons and thereby to made unlawful gains. It was also alleged that the Occupation Register which was to be kept in the Rest House, was found on the premises of the hotel run by 3rd accused. These Crl.M.Cs. are filed for quashing all further proceedings pursuant to Annexure IV Final Report.

4. Heard Sri.C.S. Manilal, learned counsel appearing for the petitioners in Crl.M.C. No.3315/2018, Sri.Philip T. Varghese, learned counsel appearing for the petitioner in Crl.M.C. No.3713/2018 and Sri.Ranjit George, learned Public Prosecutor, appearing for the State.

5. The main contention put forward by the petitioners is that the registration of the crime and the findings in the Final Report is based on a complete misconception. My attention was brought to Annexure V order passed by the Government by which it was decided to rent out the Rest Houses owned by Public Works Department at various destinations to private parties. As part of the same, tenders were invited and in the said process, the Rest House in Munnar happened to be entrusted with M/s. Malayalam Industries Ltd. of which the 3rd accused is the Managing Director. Annexure VI is the agreement executed between the 3rd accused and the Government. As per Clause 2.2 of Annexure VI agreement, the period of the agreement was fixed as 30 years from 2002 onwards.

The operation and maintenance of the Rest House were governed by Clause 4.4 of Annexure VI. As per the terms and conditions contained therein, out of the total 11 rooms, eight rooms were given to the absolute control of the 3rd respondent, whereas in respect of the remaining three rooms, even though the possession of the same was entrusted with the 3rd respondent, the allotment of the said rooms could have made only by the Executive Engineer, of PWD. The day to day maintenance of said rooms was entrusted with the said Malayalam Industries. Accordingly, the allotment of the aforesaid rooms was being made by the Executive Engineer, PWD and the same used to be intimated to the said Malayalam Industries through email and necessary facilitie