2023 (6) TMI 705 - HC - Money Laundering

Jurisdiction - power of learned Single Judge to direct the Central Bureau of Investigation (CBI) to carry on investigation in the municipality recruitment scam - illegalities perpetrated in a selection process conducted for appointment to the posts of teachers in primary schools and in which the Department of Urban Development and Municipal Affairs was not even arrayed as a party respondent. HELD THAT - In view of disposal of the SLP granting an interim order and permitting the petitioner to move a petition by way of review before the High Court with an observation that in the interest of justice, it would be appropriate if the State of West Bengal is heard afresh by the High Court on the issue as to whether the investigation should be initiated by the CBI , the appellant may not be debarred a hearing on merit moreso when the assignee Court had dismissed the review. Corruption is a reprehensible crime in a society and it is an assault on the faith of the common people upon officers and Ministers and people s representatives. It defiles and degrades and shakes the confidence of the people at large upon the Government. It causes psychological harm to the society at large leaving upon it indelible marks. The allegations in the instant case are neither skirmishes nor bald, but speak of overt acts indicating complicity among the Ministers and high placed government officials. During investigation a mammoth amount of Rs. 111 crores and gold and jewellery valued at Rs. 5.08 crores had already been seized and attached - It is well known that a slight distinction in fact or an additional fact may make a lot of difference in decision making process. The judgments delivered in the case of Sampat Lal and Others 1984 (12) TMI 328 - SUPREME COURT and Divine Retreat Centre vs- State of Kerala and Others 2008 (3) TMI 734 - SUPREME COURT were taken into consideration by the Hon ble Supreme Court in the SLP preferred in connection with the present writ petition and the direction upon CBI to investigate was not stalled. In the present case, the subject matter is a scam of extraordinary dimension and the money trail and exchange of monetary considerations for giving appointments have extended to selection process of education as well as municipality. Such investigation cannot be scuttled on a purported plea that the learned Court had no jurisdiction to direct CBI investigation in recruitment of municipality since it was having determination over Group-II matters. The wide language of Article 226 of the Indian Constitution has conferred upon High Courts, ample power to reach injustice wherever found. Instead of being astute to discover reasons for not applying the constitutional remedy, the same needs to be applied in every case to which, by any reasonable construction, it can be made applicable - The collective suffering of those who have been wronged by the malevolent activities of morally debased individuals, necessitates urgency in action. An uninterrupted and conclusive investigation into the connected schemes of corruption is the only means by which the perpetrators can be brought to justice. The order impugned dated 21st April, 2023 need not be interfered - appeal dismissed.

Summary

Issues Involved:
1. Jurisdiction of the Single Judge to direct CBI investigation.
2. Validity of the CBI investigation order in the municipality recruitment scam.
3. Maintainability of the appeal against the Single Judge's order.
4. ED's role and party status in the writ petition.
5. Nature and scope of corruption allegations.

Summary:

Jurisdiction of the Single Judge to Direct CBI Investigation:
The primary issue was whether the Single Judge had jurisdiction to direct the CBI to investigate the municipality recruitment scam while considering an application by the ED in connection with a writ petition alleging illegalities in the selection process for primary school teachers. The court affirmed that the Single Judge had jurisdiction, emphasizing that the corruption allegations were interconnected and involved common agents and beneficiaries.

Validity of the CBI Investigation Order in the Municipality Recruitment Scam:
The court noted that the ED's investigation into the primary teachers' recruitment scam under the PMLA revealed a broader scheme involving municipalities. The court held that the similar nature of offenses and involvement of common perpetrators justified the Single Judge's direction for a CBI investigation into the municipality recruitment scam. The court underscored that corruption in recruitment by municipalities was unmistakably traced to the ongoing investigations into the teachers' recruitment scam.

Maintainability of the Appeal Against the Single Judge's Order:
The appellant argued that the review petition's dismissal affirmed the original order, thus the appeal was maintainable. The court agreed, stating that the appellant was not debarred from a hearing on merit, especially since the Supreme Court had permitted the State to move a review petition and the assignee Court had dismissed the review.

ED's Role and Party Status in the Writ Petition:
The court addressed the contention that the ED was not a party to the original writ petition. It was clarified that the ED was made a party in related applications and was involved in the proceedings. The court found no infirmity in the ED's actions and its application leading to the CBI investigation order.

Nature and Scope of Corruption Allegations:
The court emphasized the gravity of the corruption allegations, noting that the scam involved a significant amount of money and high-ranking officials. The court highlighted the societal impact of corruption and the necessity for a thorough investigation. The court rejected the argument that the Single Judge's order was a nullity due to jurisdictional issues, stating that the wide language of Article 226 of the Indian Constitution empowered the High Court to address injustice comprehensively.

Conclusion:
The court dismissed the appeal, affirming the Single Judge's order directing the CBI to investigate the municipality recruitment scam. The court emphasized the need for an uninterrupted and conclusive investigation to address the interconnected schemes of corruption and bring the perpetrators to justice.