2004 (2) TMI 745 - HC - Indian Laws

Summary

Issues Involved:
1. Criminal conspiracy to cheat the Government of India.
2. Criminal misconduct by public servants.
3. Abetment of public servants to commit offences.
4. Cheating the Government of India.
5. Making false documents.

Detailed Analysis:

1. Criminal Conspiracy to Cheat the Government of India:
The petitioners, M/s A.B. Bofors, S.P. Hinduja, G.P. Hinduja, and P.P. Hinduja, challenged the impugned order charging them with criminal conspiracy to cheat the Government of India. The allegations included entering into a conspiracy with public servants to cause wrongful loss to the Government by fraudulent representation regarding the quality and price of the gun system and the non-involvement of agents or middlemen. The court observed that the evidence did not support the allegations of bribery or receipt of illegal gratification by public servants. The CBI's investigation did not yield any evidence showing that public servants received bribes either directly or through agents. The court concluded that the charges of conspiracy against the public servants could not stand, and consequently, the charge of abetment against the petitioners was also unsustainable.

2. Criminal Misconduct by Public Servants:
Public servants Rajiv Gandhi and S.K. Bhatnagar were charged with criminal misconduct by abusing their official positions to gain pecuniary advantages and taking illegal gratification for awarding the contract to Bofors. The court noted that there was no evidence to show that the public servants received any bribe. The CBI's investigation did not find any accounts or evidence of illegal gratification. The court emphasized that criminal trials cannot proceed on conjectures and surmises without material or evidence. The charges of criminal misconduct by public servants were quashed.

3. Abetment of Public Servants to Commit Offences:
The petitioners were also charged with abetting public servants to commit offences under Section 5(2) read with Section 5(1)(d) of the Prevention of Corruption Act, 1947, and Section 161 IPC. The court found that the CBI had not collected any evidence to support these charges. The learned Special Judge's conclusions were based on presumptions and conjectures without any corroborating evidence. The charges of abetment of public servants to commit offences were quashed.

4. Cheating the Government of India:
The court examined the allegations of cheating the Government of India by misrepresenting the quality and price of the Bofors gun system. The court noted that the decision to award the contract to Bofors was based on the recommendation of the Technical Committee of the Army, which preferred Bofors over Sofma due to its peculiar feature of "shoot and scoot." The court found that there was no material or evidence to suggest that the public servants influenced the decision-making process. The charges of cheating the Government of India were quashed.

5. Making False Documents:
M/s A.B. Bofors was charged with making false documents by fraudulently agreeing to pay money to agents in installments while representing to the Government that no agents were involved. The court agreed with the learned Special Judge's conclusion that the documents were made to give the impression that settlements with agents had been made. The charge for making false documents under Section 465 IPC was upheld against M/s A.B. Bofors.

Conclusions:
1. Charges for criminal conspiracy, criminal misconduct, and abetment of public servants to commit offences were quashed.
2. Charges of cheating the Government of India were quashed due to lack of evidence.
3. The charge for making false documents under Section 465 IPC was upheld against M/s A.B. Bofors.
4. The cases were transferred to the Chief Metropolitan Magistrate for framing of charges under Sections 120-B/420 IPC against the petitioners and Section 465 IPC against M/s A.B. Bofors.