The High Court of Jammu & Kashmir and Ladakh at Jammu has set aside an order directing further investigation into alleged irregularities in the implementation of the Pradhan Mantri Sehaj Bijli Har Ghar Yojana (SAUBHAGYA) scheme, agreeing with the Anti-Corruption Bureau's closure report that no criminal case was made out against four officials of the Power Development Department.

Justice Mohd. Yousuf Wani allowed petitions filed under Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023, quashing the order dated 13 August 2024 of the Special Judge, Anti-Corruption, Jammu, which had rejected the ACB's final closure report in FIR No. 4 of 2020. The court observed that the investigation, subsequent departmental action, and government-ordered third-party inspections had collectively exonerated the petitioners from allegations of criminal misconduct or conspiracy.

The ruling affects Manhar Gupta, Asgar Hussain, Tasaduq Hussain Sheikh, and Umesh Parihar, who had been named in connection with alleged procedural lapses during the execution of the SAUBHAGYA scheme in District Doda and other areas of Jammu division. The investigations had found no criminality but recommended departmental action for violating scheme guidelines.

Scheme and Allegations

The SAUBHAGYA scheme, launched by the Government of India, aimed to achieve universal household electrification by providing last-mile connectivity and connections to un-electrified households across rural and urban Jammu & Kashmir. Rural Electrification Corporation Limited was the nodal agency, and beneficiaries were identified through the 2011 Socio Economic Caste Census. The scheme was completed in March 2019, with J&K receiving a ₹100 crore cash award for being the first special category State to achieve 100% household electrification.

Following a preliminary inquiry into alleged irregularities, the ACB registered two FIRs on 5 March 2020—FIR No. 3 of 2020 at Police Station ACB Srinagar concerning Ganderbal district, and FIR No. 4 of 2020 at Police Station ACB Jammu concerning District Doda. The investigation was later extended to other districts. Both units eventually filed closure reports before their respective Special Courts.

In the Doda case, the investigating officer concluded that the allegations were "Not Proved" against the four petitioners, though it found that certain officers had committed procedural lapses by not following the SAUBHAGYA guidelines. The officer recommended Regular Departmental Action against 17 named public servants, including the petitioners.

Special Court's Order Set Aside

While the Special Judge, Anti-Corruption, Srinagar accepted the closure report in FIR No. 3 of 2020 on 8 June 2024 , the Special Judge at Jammu rejected the closure report in FIR No. 4 of 2020 on 13 August 2024 , directing further investigation . The High Court found that this order bore "the apparent trappings of a reinvestigation order ," noting that the Special Court had referred to the agencies involved as criminally liable for misappropriation of public money , use of false evidence , and criminal conspiracy .

The High Court observed that the Special Court "appears not to have been fully updated of the series of events that occurred with effect from February 2022 ," the date when the closure report was filed. During the pendency of the closure report , the Government had conducted Regular Departmental Action and the Government of India had carried out third-party inspections .

Departmental Action and Inspections

Pursuant to the ACB 's recommendation, the Government of J&K initiated RDA proceedings. On 2 May 2024 , the Power Development Department issued Government Order No. 78-JK(PDD) of 2024, which concluded that "there is no material evidence that proves willful wrongdoing on the part of any officer/official associated with the implementation of Saubhagya scheme" and that "the omissions and commissions pointed out by the ACB have been satisfactorily explained by both the MDs in their respective reports after detailed verification."

The order further recorded that the Government of India had conducted third-party inspections of works executed under the scheme, which were uploaded on the SAKSHYA portal and showed "no deficiency in the execution of works," substantiating that the works were executed satisfactorily as per the Detailed Project Reports. The closure statements for all districts had been audited, certified by the Chartered Accountant, and accepted by the Government of India .

Court's Findings

The High Court noted that the twin FIRs were split cases concerning the same set of allegations, and while the Srinagar court accepted the closure report, the Jammu court did not. The court examined the closure report and found that the allegations of "double drawals" raised by the Special Judge had already been addressed during the investigation.

"The investigation conducted by the ACB Jammu , culminating in the filing of the closure report … followed by the RDA conducted by the Government, Power Development Department , and the simultaneous third-party inspection/audit of the works executed under the Saubhagya Scheme… exonerates the petitioners from the accusation of commission of criminal misconduct or any conspiracy ," Justice Wani observed.

The court also noted that the petitioners had already faced a preliminary inquiry , criminal investigation , departmental proceedings , and government-ordered inspections and audits . "The present petitioners have already suffered the brunt of the investigation, which commenced in Case FIR w.e.f. 05.03.2020 … Even after the conclusion of the investigation, which culminated in a finding of ' Not proved ', they were again associated with proceedings during the departmental action as well as the Central Government -ordered inspections and audits," the judge observed.

Consequently, the High Court set aside the impugned order to the extent of the four petitioners and agreed with the closure report . However, the court clarified that its order "shall not be construed as granting of any permission for release of any amounts in relation to the execution of the scheme," and that any such release would be regulated by the applicable law and any subsequent orders from the Government of India or the Union Territory administration .

The petitions were disposed of accordingly, bringing an end to the criminal inquiry against the officials while preserving the government's discretion on administrative and financial matters.