2009 (12) TMI 684 - DSC - Indian Laws

Prevention of Corruption Act - Conspiracy, misappropriation, forgery, substitution of documents, destruction of documents, false disbursement of rewards and falsification of entries - incentives to the informers for furnishing secret information to the Customs Officers in the matter of smuggling of foreign goods such as gold etc., and contraband articles Held that - Accused No. 1 to 3 hatched a conspiracy in pursuance of their conspiratorial agreement, fabricated records purporting to evidence payment of large reward amount of Rs. One Crore to two informers - Accused No. 1 to 3 forged the documents and falsified the accounts for the purpose of cheating and misappropriated the reward amount meant for the informer - There is sufficient and satisfactory material to link accused No. 1 to the conspiracy to misappropriate major chunk of the large reward of Rs. One Crore by resorting to various overt acts like manipulation of records, forgery, falsification of accounts, destruction of evidence and cheating the department - Accused No. 2 has played a pivotal role in the execution of conspiratorial agreement resulting in huge misappropriation of the funds of the Customs Department - Accused No. 1 to 3 is convicted and sentenced to undergo simple imprisonment for two years and is further directed to pay a fine

Issues Involved:
1. Validity of sanction for prosecution of A2.
2. Criminal conspiracy to defraud the Department of Customs.
3. Criminal breach of trust by public servants.
4. Disappearance of evidence of the offence.
5. Forgery of documents.
6. Fraudulent use of forged documents.
7. Falsification of accounts.
8. Misappropriation of funds by public servants.

Issue-wise Detailed Analysis:

1. Validity of Sanction for Prosecution of A2:
The court concluded that the sanction for prosecution of A2 was valid. The prosecution examined P.W. 43, who authenticated the sanction order (Ex.P.122). There was no significant cross-examination to challenge the validity of this order. Thus, the point was answered affirmatively.

2. Criminal Conspiracy to Defraud the Department of Customs:
The court found that Accused No. 1 to 3 conspired to misappropriate the reward amount meant for informers. They fabricated records and created false documents to show disbursement of Rs. One Crore to two informers. The evidence provided by P.W. 10, 11, and 12, along with documents like Ex.P. 42, 43, and 47, substantiated the conspiracy. The court concluded that the prosecution proved the conspiracy beyond a reasonable doubt.

3. Criminal Breach of Trust by Public Servants:
The court determined that Accused No. 1 to 3, having dominion over public funds, committed criminal breach of trust. They dishonestly appropriated Rs. 80 Lakhs under the pretext of disbursing it to a fictitious informer. The evidence, including the testimony of P.W. 25 and the expert opinion of P.W. 24, indicated that the thumb impressions on the payment vouchers were forged. The court affirmed this point.

4. Disappearance of Evidence of the Offence:
The court found that Accused No. 1 to 3 caused the disappearance of evidence by destroying the original DRI-I and the minutes of the final reward committee meeting. The testimony of P.W. 10, 11, and 12, along with documents like Ex.P. 47, supported this finding. The court concluded that the prosecution proved this point.

5. Forgery of Documents:
The court concluded that Accused No. 1 to 3 forged documents purporting to be receipts acknowledging the payment of money. The expert testimony of P.W. 24 confirmed that the thumb impressions on the payment vouchers did not match the informers' impressions. The court answered this point affirmatively.

6. Fraudulent Use of Forged Documents:
The court found that Accused No. 1 to 3 used forged documents as genuine to cause wrongful loss to the Department and wrongful gain for themselves. The evidence, including the testimony of P.W. 10, 11, and 12, and the expert opinion of P.W. 24, substantiated this charge. The court concluded that the prosecution proved this point.

7. Falsification of Accounts:
The court determined that Accused No. 1 to 3 falsified accounts by tampering with documents to defraud the Department. The evidence provided by P.W. 10, 11, and 12, and documents like Ex.P. 47, supported this finding. The court answered this point affirmatively.

8. Misappropriation of Funds by Public Servants:
The court concluded that Accused No. 1 to 3 dishonestly misappropriated funds entrusted to them as public servants. They abused their official positions to obtain pecuniary advantage. The evidence, including the testimony of P.W. 25 and the expert opinion of P.W. 24, indicated that Rs. 80 Lakhs was misappropriated. The court affirmed this point.

Order:
The court convicted Accused No. 1 to 3 for offences under Sections 120-B, 409, 201, 467, 471, 477A of IPC and Section 13(2) r/w 13(1)(c) and (d) of the Prevention of Corruption Act, 1988. The sentences ranged from two to three years of simple imprisonment, with fines imposed. The sentences were ordered to run concurrently, and the accused were entitled to benefit of set-off for the period of detention under Section 428 of Cr.P.C.

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