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TMI Blog2015 (7) TMI 1430X X X X Extracts X X X X X X X X Extracts X X X X ..... disbursement of an amount of Rs. 954 crores of various departments of Noida in respect of which agreement bonds were executed within a span of eight days. There were various other allegations in regard to the carrying out of work even before the finalization of tenders resulting in a loss to NOIDA. The investigation was transferred by the State Government to the CBCID at the behest of a partner of a construction company which was one of the co-accused on 3 November 2012, following the receipt of a request on 22 October 2012. The essence of the allegation is that the ninth respondent has been able to use his personal proximity in the corridors of power with successive governments in State by indulging in corruption, amassing wealth for conferring favours on himself, the members of his family and business associates. The ninth respondent has, it is alleged, been able to shield himself due to his proximity with the corridors of power both in the previous government and the present government in the State of Uttar Pradesh. There are several reasons why the submission of the State, that based on the constitution of a Commission of Inquiry further action be deferred or held in abe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ior Engineer on 17 March 1980 and was promoted as Assistant Project Engineer in 1989. After holding officiating charge as Project Engineer, he was promoted on 28 August 1997 as Senior Project Engineer, following which on 20 September 2002 he was promoted as Chief Maintenance Engineer. Ultimately, he was promoted as Chief Engineer. A First Information Report FIR was registered as Case Crime No. 371 of 2012 under Sections 409, 420, 466, 467, 469, 471 and 120-B of the Indian Penal Code, 1860 Penal Code and under Section 13(1)(d) read with Section 13(2) of the Prevention of Corruption Act, 1988 on 13 January 2012 at Police Station Sector 39, Noida, Gautam Budh Nagar, against the ninth respondent, one Ramendra, the then Project Engineer and two construction companies by the name of Tirupati Constructions Private Limited and JSP Constructions. It was alleged that within a brief period between 14 December 2011 and 23 December 2011, agreement bonds for the release of moneys were executed in favour of contractors in the amount of Rs. 954.38 crores by the Engineering Department of NOIDA. Besides this allegation, it was also alleged that the work of underground wiring in respect of certai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. Nitya Tradex Pvt. Ltd. 16. K Biological Pvt. Ltd. 17. Daffodil Infra-Agro Projects Pvt. Ltd. 18. Kinzo Infosoft Pvt. Ltd. 19. Kinzo IT Solutions Pvt. Ltd. 20. Chahat Technology Pvt. Ltd. 21. K.S. Ultratech Pvt. Ltd. 22. Kusum Garments Pvt. Ltd. 23. Hitchki Creations Pvt. Ltd. 24. Norvic Design Pvt. Ltd. 25. Maconns Infra Pvt. Ltd. 4. The income tax authorities sought documents, inter alia, in regard to the date of allotment of land to those companies together with underlying documents and other details. Details were also sought in regard to the allotment of any other land in the name of the ninth respondent, his wife Kusum Lata, son Sunny Yadav and other persons or entities including Rajinder Manocha, Rajesh Manocha, Namrata Manocha, Anil Peshwari and Meenakshi Peshwari either in their names or in the names of companies or firms in which they were associated. 5. During the course of these proceedings, a compilation of documents has been placed on the record, indicating that in response to the letter of the income tax authorities, the authorities at NOIDA collated and forwarded information pertaining to properties, including residential plots i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... na Express Way Authority. In this regard, it is requested that all the relevant material/documents may be handed over to CBI for carrying the necessary investigation. It is reiterated that notification constituting the Special Investigation Team (SIT) issued in light of directions by Hon'ble Supreme Court in Writ Petition (Civil No. 176 of 2009 provides as follows: All organs, agencies, departments and agents of the State whether at the level of Union of India, or the State Government, including but not limited to all statutorily formed individual bodies, and other constitutional bodies, extend all the cooperation necessary for the functioning of Special Investigation Team. The Union of India and where needed the State Governments will facilitate the conduct of the investigations, in their fullest measure, by the Special Investigation Team and functioning, by extending all the necessary financial material, legal diplomatic and intelligence resources, whether such investigations or portions of such investigations occur inside the country or abroad. This issues with the approval of the competent authority. 7. Prior to the receipt of the letter dated 24 February 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions, key positions and large number of lucrative assignments as explained above; (c) the way initially an FIR was registered against Sri Singh, it was handed over to the State investigation agency CB-CID, he was placed under suspension and the investigation agency went all after him as to get red corner notice issued against him by the Interpol but after some months everything changed quite dramatically after his alleged compromise made with certain top political persons playing key and extremely influential role in the present regime; (d) the way the CB-CID closed the criminal case against Sri Singh in an extremely hush-hush and hurried manner; (e) the way the entire State bureaucracy's eyes changed towards Sri Yadav Singh after his alleged compromise with the top political leaders of the current political government (f) the way he was reinstated in a surreptitious manner (g) the way he was made the Engineer-in-chief not only of Noida but of Greater Noida and Yamuna expressway also in a very surprising and eye-raising manner (h) the way the State government has so far reacted to this episode (i) the way it took about 12 days for the State government to suspend him while it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder dated 18 June 2015, the Supreme Court noted, inter alia, the submission of the State that during the pendency of the present proceedings at Lucknow, the High Court was not justified in entertaining another writ petition at Allahabad. The Supreme Court stayed further proceedings in the second writ petition at Allahabad. During the course of the hearing, the learned Advocate General has fairly stated before the Court that since the pleadings in the second writ petition were virtually lifted from the present proceedings, and since these proceedings had already been entertained at Lucknow in the earlier PIL, the State was constrained to move the Supreme Court against a second PIL being entertained. We have mentioned this fact for the completeness of the record though, as we shall now proceed to narrate, the proceedings have been argued fully on all sides to their fullest on merits. 11. The jurisdiction of this Court in a public interest petition has been invoked by the petitioner on two counts. The first submission which has been urged is that in pursuance of the judgment and order of the Supreme Court in Ram Jethmalani Vs. Union of India (2011) 8 SCC 1, an SIT has been constit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the invocation of the jurisdiction of this Court under Article 226 is that, consistent with the law laid down by the Supreme Court, the present case is a fit and proper case for a reference being made to the CBI to investigate all aspects pertaining to the alleged acts of corruption of the ninth respondent having due regard to (i) the huge corruption involved; (ii) the political support and patronage extended to the ninth respondent cutting across the political spectrum; (iii) the high level at which bureaucratic irregularities have taken place; (iv) the national and global spread of the crime; (v) the need for a specialized investigation by an agency; and (vi) the avowed need to preserve public confidence in the administration of criminal justice. In this regard, the petitioner has averred that initially an FIR was registered against the ninth respondent and he was suspended from service. According to the petitioner, the investigation was abruptly transferred to the CBCID at the behest of a co-accused and a final closure report was submitted to the Court for acceptance. The ninth respondent was reinstated in service and was restored to his position not only as Engineer-in-Chi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been submitted that the manner in which the State Government closed the earlier proceedings through its investigative arm is indicative of the fact that there is no serious effort to investigate the allegations against the ninth respondent. After facts came to light following the raid by the income tax authorities, all that the State Government has done-it is submitted-is to constitute a Commission of Inquiry. No FIR was registered and no effort has been made by the State to investigate into the allegations against the ninth respondent. The State Government has, in the submission of the petitioner, acknowledged the volume and complexity of the case in its official notifications as well as in its counter affidavits filed in these proceedings. In this background, having also regard to the nature and complexity of the case, it has been submitted that a reference to the CBI for carrying out the investigation is necessary to ensure that the administration of criminal law is not derailed by the proximity of the ninth respondent to the corridors of power. 13. The petition has been resisted by the Advocate General appearing on behalf of the State, counsel appearing on behalf of NOID ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Police Establishment Act, it is not open to the Union Government to direct the State to hand over the papers to CBI without the consent of the State Government. 15. Counsel appearing on behalf of NOIDA has supported these submissions and urged that NOIDA has cooperated with the income tax authorities upon receipt of the letter dated 8 December 2014 by making available necessary documents and material pertaining to the ninth respondent and the dealings in property by his alleged associates and companies. The submissions which have been made by the other learned counsel were adopted. 16. These submissions fall for consideration. 17. In Ram Jethmalani (supra), the Supreme Court constituted an SIT headed by two former Judges of the Supreme Court to investigate into and initiate proceedings including prosecutions in relation to all matters regarding unaccounted moneys held in foreign banks by Indians or other entities operating in India. Paragraph 57 of the judgment and order of the Supreme Court reads as follows: In light of the above we herewith order: (i) That the High-Level Committee constituted by the Union of India, comprising of (i) Secretary, Department of Reven ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the country's battle against generation of unaccounted for monies, and their stashing away in foreign banks or in various forms domestically; (v) That the Special Investigation Team so constituted report and be responsible to this Court, and that it shall be charged with the duty to keep this Court informed of all major developments by the filing of periodic status reports, and following of any special orders that this Court may issue from time to time; (vi) That all organs, agencies, departments and agents of the State, whether at the level of the Union of India, or the State Government, including but not limited to all statutorily formed individual bodies, and other constitutional bodies, extend all the cooperation necessary for the Special Investigation Team so constituted and functioning; (vii) That the Union of India, and where needed even the State Governments, are directed to facilitate the conduct of the investigations, in their fullest measure, by the Special Investigation Team so constituted and functioning, by extending all the necessary financial, material, legal, diplomatic and intelligence resources, whether such investigations or portions of such investi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommunication was discharging its solemn obligation in terms of the judgment and order of the Supreme Court which required all governmental authorities both at the Central and the State level to cooperate with the SIT. Once instructions have been issued by the SIT in pursuance of which the Director CBI, who is a member of the SIT, is to take up the investigation, the State Government had no option but to comply with the direction. Under Article 142 of the Constitution, the Supreme Court in the exercise of its jurisdiction is empowered to pass such decree or to make such orders as are necessary for doing complete justice in any cause or matter pending before it. Article 144 requires all authorities, civil and judicial in the territory of India to act in aid of the Supreme Court. Under Article 256 of the Constitution, the executive power of every State has to be exercised to ensure compliance with the laws made by Parliament and the executive power of the Union extends to giving such directions as may appear to the Government of India to be necessary for that purpose. The Union Government is enforcing an order of the Supreme Court which casts an obligation both on the Union Government ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Supreme Court. Section 3 of the Delhi Special Police Establishment Act, 1946 provides that the Central Government may, by a notification in the official gazette, specify the offences or class of offences which are to be investigated by the Delhi Special Police Establishment. Under Section 5, the Central Government is empowered by order to extend to any area in a State, not being a Union Territory, the powers and jurisdiction of the Delhi Special Police Establishment for the investigation of any offences or classes of offences specified in a notification under Section 3. Section 6, however, provides that nothing contained in Section 5 would be deemed to enable any member of the establishment of the Delhi Special Police Establishment to exercise powers and jurisdiction in any area in a State without the consent of the government of that State. 22. A Constitution Bench of the Supreme Court in State of West Bengal Vs. Committee for Protection of Democratic Rights, West Bengal (2010) 3 SCC 571, has held that the power of the High Court under Article 226 is not curtailed or diluted by Section 6: (vii) When the Special Police Act itself provides that subject to the consent by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he local police. This extraordinary power must be exercised sparingly, cautiously and in exceptional situations where it becomes necessary to provide credibility and instill confidence in investigations or where the incident may have national and international ramifications or where such an order may be necessary for doing complete justice and enforcing the fundamental rights. Otherwise CBI would be flooded with a large number of cases and with limited resources, may find it difficult to properly investigate even serious cases and in the process lose its credibility and purpose with unsatisfactory investigations. 23. In Secretary, Minor Irrigation Rural Engineering Services, U.P. Vs. Sahngoo Ram Arya (2002) 5 SCC 521, the Supreme Court observed as follows: ...Therefore, it is clear that a decision to direct an inquiry by CBI against a person can only be done if the High Court after considering the material on record comes to a conclusion that such material does disclose a prima facie case calling for an investigation by CBI or any other similar agency, and the same cannot be done as a matter of routine or merely because a party makes some such allegations. 24. These p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nst the ninth respondent are not just allegations of personal corruption or of personal aggrandizement. The essence of the allegation is that the ninth respondent has been able to use his personal proximity in the corridors of power with successive governments in State by indulging in corruption, amassing wealth for conferring favours on himself, the members of his family and business associates. The ninth respondent has, it is alleged, been able to shield himself due to his proximity with the corridors of power both in the previous government and the present government in the State of Uttar Pradesh. At this stage, we desist from making a specific mention of the names of political personalities but it would suffice to note that there are serious allegations that the business associates of the ninth respondent and the members of his family are related to persons in the political establishment. The State Government has constituted a Commission of Inquiry on 10 February 2015 following the institution of the PIL on 10 December 2014. The terms of reference of the Commission of Inquiry constituted by the State are (i) whether the promotions which were granted to the ninth respondent at v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n after the receipt of the letter of the Union Government on 24 February 2015 drawing attention to serious allegations of corruption and amassing of unaccounted wealth by the ninth respondent. The Court has been informed on affidavit that even the departmental enquiries initiated against the ninth respondent have been deferred and held in abeyance following the constitution of a Commission of Inquiry. Fourthly, the corruption alleged is on a gigantic scale. A complex web of shell companies has been adopted to evade law and to launder the allegedly ill gotten gains. There is a serious case to be probed on whether as alleged the activities of the ninth respondent have benefactors in high places in the State who have been associated through their close relatives and associates with the business dealings of the ninth respondent and his family. In our view, having due regard to the admittedly complex nature of the case, the wide ramifications involving corruption by persons in public offices and the gravity of the allegations required to be probed, a fit and proper case has been made out for investigation by the CBI. 27. We have carefully considered the submission that the petition w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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