Karnataka HC quashes FIR registered under Prevention of Corruption Act without verifying ITR [Read Order]

In a recent case, the Karnataka High Court quashed an FIR registered under Prevention of Corruption Act, 2002 without verifying the Income Tax Return ( ITR ).

Petitioner Channakeshava.H.D is an Assistant Engineer in Karnataka Power Transmission Corporation Limited. Thereafter, he was transferred to Koramangala Division and Hebbala Division of BESCOM and worked as Executive Engineer.

The respondent police registered FIR based upon the source report, wherein it is alleged that, when the petitioner was working as Executive Engineer at BESCOM from 11.11.1998 till 30.09.2023, he has amassed assets to the tune of Rs.6,64,67,000/- (92.54%) disproportionate to the known source of his income. Accordingly the Police registered FIR by obtaining the order Section 17 of Prevention of Corruption Act,which is under challenge.

During the adjudication Prasanna Kumar P, the Counsel for petitioner submitted that the There is no order passed as per proviso (ii) to Section 17 of Prevention of Corruption Act which is mandatory for investigating the matter under Section 13(1)(b) of the Prevention of Corruption Act.

Further argued that in order to protect the interest of the government servant, preliminary enquiry has to be conducted against the government servant prior to registering FIR and thereafter, an FIR shall be registered, if the cognizable offense is made out. Hence they have not verified the income tax returns and APRs in preliminary enquiry before taking the investigation.

Further the entire additional supplementary chargesheet, there is nothing to suggest that the petitioner had any knowledge about money laundering activities as are alleged against her husband and other accused persons.

B.S.Prasad,Counsel for the respondent argued that there is an order passed by the Superintendent of Police under Section 17 of the Prevention of Corruption Act, which was not verified by the petitioner.

Further contended that based upon the source report, the Superintendent of Police has conducted the preliminary enquiry and thereafter, passed the order for registering the FIR.

The respondent counsel also contended that the preliminary enquiry is not necessary in this case as the police officer has prepared the source report, and that itself is preliminary enquiry, and no more preliminary enquiry is required, unlike the complaint filed by the private individual.

It was observed that there is no preliminary enquiry conducted by the police before registering the FIR. The source report is also insufficient since the beginning period of the property in possession of the petitioner was shown as 'Nil' or 'Zero'. Therefore, the source report is also insufficient and the order passed by the Superintendent of Police is also non application of mind.

After analyzing the facts and arguments of both parties, a single  bench of Justice K.Natarajan quashed an FIR registered under Prevention of Corruption Act, 2002 without verifying the Income Tax Return (ITR).

To Read the full text of the Order CLICK HERE

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