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Issues Involved:
1. Validity of the Kerala Government's notification withdrawing consent for CBI investigation. 2. Competency of the Kerala Government to order further investigation by its police officers. 3. Applicability of Section 21 of the General Clauses Act to the withdrawal of consent under Section 6 of the Delhi Special Police Establishment Act. Summary: Validity of the Kerala Government's Notification: The Supreme Court examined whether the Kerala Government's notification withdrawing consent for the CBI to investigate Crime No. 246/94 was valid. The Court held that once the CBI had started and completed the investigation with the consent given under Section 6 of the Delhi Special Police Establishment Act, the State Government could not withdraw the consent to stop the investigation midway. The Court referred to the case of Kazi Lhendup Dorji vs. Central Bureau of Investigation, emphasizing that an investigation started by the CBI with the State Government's consent must be completed, notwithstanding the withdrawal of consent. Competency to Order Further Investigation: The Court analyzed whether the Kerala Government could order further investigation by its police officers after the CBI had completed its investigation and submitted the report under Section 173(2) of the Code of Criminal Procedure. The Court concluded that the State Police could not further investigate the case once the CBI had taken over and completed the investigation. The Court stated, "Further investigation is the continuation of the earlier investigation and not a fresh investigation or reinvestigation to be started ab-initio wiping out the earlier investigation altogether." Applicability of Section 21 of the General Clauses Act: The Court addressed whether Section 21 of the General Clauses Act applied to the withdrawal of consent under Section 6 of the Delhi Special Police Establishment Act. The Court noted that even if Section 21 were applicable, the withdrawal of consent could only have prospective operation and would not affect matters where action had already been initiated. The Court concluded that the notification withdrawing consent was invalid and unsustainable in law. Malafide Exercise of Power: The Court found that the Kerala Government's action in withdrawing consent was malafide. The Court highlighted several factors, including the initial request to transfer the case to the CBI due to the complexity and spread of the incidents, the detailed investigation conducted by the CBI, and the lack of any complaint from the Indian Space Research Organisation (ISRO) regarding espionage activities. The Court also noted that the Central Government supported the CBI's investigation and opposed any further investigation by the State Police. Conclusion: The Supreme Court allowed the appeals, quashed the impugned notification, and directed the Kerala Government to pay Rs. 1,00,000/- as costs to each of the six accused-appellants. The Court emphasized that the issuance of the notification did not conform to the principles of a responsible government bound by the rule of law.
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