Anticipatory bail denied due to risk of obstruction in investigation involving serious financial misconduct.

ORDER

Dated, this the 11^th day of February, 2026 This anticipatory bail application has been filed at the instance of the petitioner/first accused in Crime No.VC 14/2025/IDK dated 15.11.2025 of VACB, Idukki registered for offences punishable under Sections 406 , 409 and 120B of the Indian Penal Code as well as under Sections 13 (1)(c) and (d) read with 13(2) of the Prevention of Corruption Act, 1988 and (1)(a) read with 13(2) of the Prevention of Corruption (Amendment) Act, 2018 [PC (Amendment) Act, 2018, for short hereinafter].

2. Heard the learned counsel for the petitioner/first accused and the learned Special Public Prosecutor appearing for VACB.

3. The prosecution case is that on getting previous approval under Section 17A of the PC (Amendment) Act, 2018, a preliminary enquiry was conducted as directed by the Enquiry Commissioner/Special Judge, Muvattupuzha, vide CMP No. 2091/2017 and as per the preliminary enquiry, the allegation in the complaint were found to be true and on this basis, crime was registered by the police. The specific allegation is that the first accused, who held the post of Secretary and the second accused, who held the post of President of the Parathode Ksheerolpathana Co-operative Society(hereinafter, for short, 'APCOS') during the period between 2017-18, 2018-19, 2019-20, falsified the records of the APCOS and misappropriated Rs.12,69,268.80. Apart from the above said allegation as against accused Nos. 1 and 2, the prosecution alleged misappropriation of Rs. 43,723.20 by the second accused, since the second accused had received the same under the head 'Presidents Advance', without repaying the same.

4. The learned counsel for the petitioner argued that the petitioner is innocent and according to him, the allegation pertains to the period from 2017 and the Secretary has no role in the misappropriation. It is argued further that the petitioner is ready to co-operate with the investigation, therefore, he may be released on anticipatory bail by imposing conditions.

5. The learned Special Public Prosecutor placed the Vigilance Enquiry Report as well as the statement of the Investigating Officer before this Court, while strongly opposing the grant of pre-arrest bail to the petitioner on the submission that the arrest and custodial interrogation of the petitioner are necessary to accomplish meaningful investigation. The relevant paragraphs of the report of the Investigating Officer are extracted hereunder:-

“1. The petitioner is the first accused in VC 14/2025/IDK, U/s: 13(1)(c) & (d) r/w 13(2) of the Prevention of Corruption Act, 1988 , Section 13 (1)(a) r/w 13(2) of the Prevention of Corruption (Amendment) Act, 2018 , and Sections 406 , 409, and 120B of IPC , registered at the VACB, Idukki Unit, based on the report of Preliminary Enquiry 05/2021/IDK.

2. It is humbly submitted that Mr. M.C. Antony, S/o Abraham, Mulackal House, Parathode P.O, Konnathady Village, Idukki District, filed a complaint before the Hon'ble Enquiry Commissioner & Special Judge, Muvattupuzha, by alleging financial irregularities in the Idukki Parathode Milk Producers' Co-operative Society, Limited No. 14 D (APCOS). The Hon'ble Court was registered as CMP No. 2091/2017 and directed to conduct of a preliminary enquiry into the allegations vide order dated 04-02-2021. Subsequently, the Vigilance Director ordered to conduct Preliminary Enquiry as per letter No. E8-4833/2021/IDK dated 04- 08-2021, and registered preliminary enquiry as PE.05/2021/IDK at the Idukki Vigilance Unit on 16-08- 2021. After completing the preliminary enquiry and report submitted before the Vigilance Director, recommending that a Vigila