UPS MADAN vs. THE STATE OF MAHARASHTRA AND ORS

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Date of Judgment: 22-04-2019

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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CRIMINAL APPELLATE JURISDICTION
CRIMINAL APPLICATION NO.1311 OF 2018
UPS Madan ..  Applicant
Versus
State of Maharashtra & Anr ..  Respondents

Mr. D.J. Khambata, Sr. Advocate with Shardul Singh for the
applicant.
Mr.Deepak Thakare, P.P with Mr.K.V. Saste, APP for the State.
Mr.Aditya Pratap for respondent no.2. 
             CORAM:  RANJIT V. MORE & 
                        SMT. BHARATI H.DANGRE, JJ.
nd
                      DATED :  22  APRIL 2019
JUDGMENT  :­  (Per Smt.Bharati Dangre, J)
1 By the present application, the Chief Secretary of
State of Maharashtra has invoked the jurisdiction of this Court
praying for quashing  and  setting aside  the  impugned  order
passed   by   the   learned   Special   Judge   (under   Prevention   of
th
Corruption Act) for Greater Mumbai, on 25   October 2018,
thereby directing the ACB, Mumbai to investigate the complaint
filed by the Respondent no.2 under Section 156(3) of the Code
of Criminal Procedure (for short 'the Code')
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2 We have heard learned senior counsel Shri Darius
Khambatta   appearing   for   the   applicant,   learned   Public
Prosecutor Shri Deepak Thakare along with Shri K.V. Saste for
the State and Shri Aditya Pratap representing the complainant/
respondent no.2.
The   applicant,   at   the   time   of   filing   of   the
application, was holding the post of Additional Chief Secretary
(Finance) of the State of Maharashtra.  However, as on date, he
is posted as the Chief Secretary of the State of Maharashtra.
The applicant belongs to the IAS cadre and joined the Indian
Administrative Services in the year 1983.  It is not in dispute
that he falls within the definition of public servant as defined
under the Indian Penal Code for the purpose of Prevention of
Corruption Act, 1988.  
3 The grievance of the applicant revolves around the
st
complaint   which   is   filed   by   the   respondent   no.2   on   21
February 2018 in the Special Court seeking an investigation
under Section 156(3) of the Code of Criminal Procedure by the
Maharashtra   State,   Anti   Corruption   Bureau   against   the
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applicant for the alleged offences under Section 120B, 409 of
the  IPC and Section 13(1)(d) of the Prevention of Corruption
Act.     The   said   complaint   was   accompanied   with   several
documents.   The complainant alleged therein that particular
land at Bandra Kurla Complex is developed by a Company
known as Indian Film Combine Pvt. Ltd as a 'Drive­in­ Theatre'.
The allegation in the complaint is to the effect that the said
Company is developing the Drive­in­theatre by utilizing the 2.0
Floor Space Index (FSI) and it is also proposing to carry out the
construction of shops, hotels etc. on the said piece of land.  The
complaint alleges that according to the prevailing Rules and
Regulations, it is permissible for the Company to develop the
land in issue by utilizing only 1.0 FSI and without changing
user of the said land distinct from a Drive­in­theatre.  A positive
assertion is made in the complaint that it is the applicant who is
responsible for granting the permissions which has resulted into
the Company obtaining pecuniary advantage by violating the
norms relating to FSI and change of user in respect of the land
in   question.     In   order   to   establish   the   said   allegation,   the
complainant alleges that originally for Bandra Kurla Complex,
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FSI of 1.0 was available and thereafter, the Central Government
through   Ministry   of   Environment   and   Finance   issued   a
th
notification on 19   February 1991 that on and from the said
date of the notification, in CRZ area, development would be
permissible only to the extent permitted by Rules/Regulations
in   force   as   on   date   of   the   said   notification   and   such
development would be permitted without any change in user.
The premise on which allegations are levelled in the complaint
is the MOEF notification and it is alleged that FSI of 2.0 was not
available for the land in issue and the land could be put to use
only as a Drive­in­theatre. 
Pursuant to the directive issued by the Hon'ble Apex
Court in the case of   Priyanka Srivastava Vs. State of Uttar
Pradesh ,   the   complaint   is   accompanied   by   a   supporting
th
affidavit sworn on 17  July 2018.
4 The   said   complaint/application   preferred   by   the
complainant   was   taken   up   for   consideration   by   the   Special
Judge (Under the Prevention of Corruption Act) for Greater
Mumbai,   and   it   was   numbered   as   ACB   Miscellaneous
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Application No.238 of 2018.   It is this order passed by the
th
Special Judge on 25  October 2018 which is impugned in the
present application before us.   The learned Special Judge has
taken into consideration the allegation set out in the complaint
in   relation   to   a   plot   of   land   admeasuring   about   20   acres
reserved for Drive­in­theatre situated at Bandra (East) Mumbai
and leased to the Indian Film Combine Pvt.Ltd.  The allegations
in the complaint are relied by the learned Special Judge and it
is   noted   that   though   the   complainant   had   raised   grievance
before the concerned authorities for taking action, no action
was taken.  The Special Judge arrived at a conclusion that the
offence against the respondent is serious in nature and calls for
investigation in respect of the pecuniary advantage obtained by
the accused without following the notification and the rules of
development  at  the  relevant   time.     In  the  backdrop  of  the
aforesaid   findings   recorded,   the   Special   Judge   passed   the
following order :
“Accused persons granted the FSI of '2' for the land.
Accused without following the Notification and rules of
development permitted huge construction to go on with
the FSI of '2'.  The FSI being used through an illegal
change of use of land from drive­in­theatre to that of
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shopping  mall,  five­star  hotel  etc.  thereby  giving  an
illegal pecuniary gain to private developer to the tune of
thousand   of   crore   in   one   of   the   costliest   areas   of
Mumbai i.e. the Bandra Kurla Complex.  The petitioner
have filed complaint before concerned authorities for
taking action but no any action was taken.  The offence
against respondent is serious in nature and requires
investigation   in   respect   of   pecuniary   advantage   to
accused by accused no.1 without following Notification
and rules of development at the relevant time”.
5 The   learned   Senior   counsel   Shri   Khambatta
appearing for the applicant assails the impugned order on two
counts viz. on the merits of the matter and his attempt is to
demonstrate that the complaint is ex­facie false and frivolous.
He would rely upon a series of documents to demonstrate that
the factual assertion made in the complaint is incorrect and is a
distorted version.   The second count on which the impugned
order   is   assailed   is   the   ground   of   want   of   sanction   as   as
contemplated   by   the   Maharashtra   Amendment   to   Section
156(3) of the Code of Criminal Procedure brought into effect by
the   Maharashtra   Act   No.33   of   2016.     In   light   of   the   said
amendment, the learned senior counsel would submit that it
was not permissible for the Magistrate to order an investigation
against the applicant except with the previous sanction under
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Section 197 of the Code or under any other law for the time
being in force.   He further submits that the respondent no.2
being conscious of this fact had approached for sanction to the
Hon'ble President of India and has asserted in the complaint
that there is a deeming sanction in light of the proviso to the
amendment to Section 156(3) of the Code as applicable to the
State of Maharashtra.  As far as the factual aspects of the matter
are concerned, Shri Khambatta would submit that the MMRDA
was appointed as the planning authority for the Bandra Kurla
Complex   and   the   planning   proposals   were   submitted   by
MMRDA   to   the   State   Government   who   had   accorded   its
approval   to   the   General   Development   Control   Regulations
(GDCR) for Bandra Kurla Complex (BKC).  Shri Khambatta has
invited our attention to the said Regulations which reflect that
the FSI permissible for commercial development in BKC from
1971   was   2.0.     He   would   further   submit   that   the   land   in
question falls within 'E' block of the planning proposal.   He
would  also  invite   our  attention   to  the  lease   deed  executed
pursuant to a tender notice for period of 99 years and would
invite our attention to the various covenants of the said lease
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deed which would reveal that the user of the land in question
was also for other activities other than the Drive­in­ theatre and
would extend to a First Class Restaurant, Bar, Candy shop,
petrol pump etc.   On the basis of the said documents placed
before us, Shri Khambatta would urge that on merits of the
matter   also,   the   FSI   of   2.0   is   available   and   the   use   of
commercial activities was already contemplated in terms of the
lease deed executed in the year 1991 itself.   He would thus
submit that perusal of the public documents would conclusively
demonstrate   that   the   entire   facade   of   the   complainant   is
misconceived.  
Shri Khambatta would also submit that the power
under   Section   156(3)   conferred   on   a   Magistrate   has   to   be
exercised  with  great  care   and  caution  and time   and  again,
Hon'ble Apex court as well as this Court was required to take
cognizance of the blatant abuse and exercise of discretion by
the Magistrate and in light of the apprehended misuse of said
power, and a settled position of law has emerged to the effect
that the application of mind by the Magistrate while exercising
the power should be reflected in the order.  A mere statement
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that he has gone through the complaint, documents and heard
the complainant would not be sufficient.  Shri Khambatta has
seriously criticized the impugned order inasmuch as he submits
that   the   Magistrate   has   merely   reproduced   the   allegation
contained in the complaint and the impugned order lacks any
attribute application of mind by the Magistrate so much so that
he   has   not   even   cursorily   gone   through   the   documents
accompanying the complaint itself.
In   light   of   the   factual   assertion,   Shri   Khambatta
would submit that the impugned order deserves to be quashed
and set aside as the Magistrate has directed the investigation
without any application of mind and such a trend and exercise
of power is to be highly condemned.
In the alternative, Shri Khambatta has also invited
our attention to the fact that from the year 1987 to 1999, the
applicant had no concern with MMRDA and it was only in the
year 2000­2002, he worked in MMRDA but was assigned to the
Project   Division   as   a   Project   Director   and   he   was   then
appointed as Commissioner of MMRDA in the year 2013.   In
such circumstances, he would submit that there is no material
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placed on record by the complainant to demonstrate that the
applicant had taken any particular decision which would, in
any manner, violate the notification issued by the Ministry of
Environment and Forest or any of the Development Control
Regulation, much less the GDCR.   He would also submit that
the very land has itself been a subject matter of Public Interest
Litigation (L) No.83 of 2018 filed by one Mrs.Abha Singh and
Mr.Santosh Daundkar  and he informs the Court that the said
PIL has been dismissed by this Court.
6 As against the said submission, the learned counsel
for the complainant/respondent no.2 herein Mr.Aditya Pratap
who   supports   the   impugned   order   and   submits   that   the
exhaustive complaint preferred by the complainant gives the
details of the misconduct as contemplated under Section 13(2)
of  the   Prevention   of  Corruption   Act.     He   submits   that   this
involves a large scale fraud and there are several persons of
high ranking and influential in position involved in the same
and it is only when the complaint would be investigated by the
police machinery, veil would be lifted.  Shri Pratap would also
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th
place reliance on the CRZ notification issued on 19  February
1991 and he submits that the applicant who was working in the
capacity   of   Commissioner,   MMRDA   was   the   competent
authority to grant FSI in areas under the control of MMRDA.
th
He  submits  that  the  MOEF notification  dated  19   February
1991 made it imperative that the FSI admissible on the date of
notification would prevail and there would be no change of
user and on that date, except for FSI required to construct the
Drive­in­theatre, no other FSI was available and the land was
purported to be used only as a Drive­in­theatre.   Shri Pratap
would positively assert that the applicant had permitted huge
construction to go on with an FSI of 2.0, being used through an
illegal change of use of land from driving theatre to that of a
Shopping   Mall,   5   Star   Hotels   etc.   thereby   giving   an   illegal
pecuniary   gain   to   the   private   developer   to   the   tune   of
thousands of crores in one of the costliest areas of Mumbai.  
He would also place reliance on the NOC issued by
the   Urban   Development   Department,   Government   of
th
Maharashtra on 6  August 1999 which stipulate that in CRZ­II
area, the development is permitted as per DCR prevailing on
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19   February   1991.     He   would   thus   allege   that   it   is   the
applicant who had flouted the aforesaid orders though being
aware of the provisions of law and the existing notification.
Shri Pratap would thus allege   misconduct on   part of the
applicant, thereby attracting Section 13(1)(d) of the Prevention
of Corruption Act.   He would also allege that the act of the
applicant would invoke and apply Section 409 of the IPC since
it is the breach of trust on the part of the applicant in granting
illegal FSI enabling the private persons to avail built up area,
many   more   times   on   the   land   against   the   one   which   is
permitted. 
As far as the objection of obtaining sanction in light
of   the   Maharashtra   Amendment   is   concerned,   Shri   Pratap
would submit that since the offence under reference was under
the Prevention of Corruption Act, 1988 under Section 19 of the
said Act, the complainant had preferred an application to the
President   of   India   to   accord   sanction   before   ordering
investigation   and  he   has placed  that   application   on   record.
th
According to Shri Pratap, the said application was made on 27
October 2017 and more than 90 days have lapsed and since no
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reply is received from the President, relying on the proviso to
Section   156(3)   of   the   Code   of   Criminal   Procedure   of   the
Maharashtra   Amendment,   he   submits   that   the   sanction   is
deemed to have been granted.  He would also further submit
that the requirement of sanction emanates from Section 19 of
the Prevention of Corruption Act and not  under Section 197 of
the   Code   of   Criminal   Procedure   and   for   making   the   said
submission, he falls back on Section 4 of the Code of Criminal
Procedure. 
Learned counsel Shri Aditya Pratap placed heavy
reliance on the following judgments of the Hon'ble Apex court :
1) Laksmansingh Himatsingh Vaghela Vs. Naresh Kumar  
Chandrashanker Jha & Ors,
AIR 1990  SC 1976.
2 Narayana Swamy Vs. State of Karnataka and ors.
AIR 2016 (4) SC 125
3 Ajoy Archarya Vs. State Bureau of Investigation
2013 AD (SC) 125
4 Abhay Singh Chautala Vs. CBI
2011 (2) ACR 2252 (SC)
7 With the assistance of the learned counsel for the
parties,  we  have  perused the  said  complaint  along with its
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annexures   and   we   have   also   considered   the   submissions
advanced on behalf of he respective counsel.  At the outset, we
must take note of the amendment in Section 156(3) inserted in
the Code of Criminal Procedure by way of Maharashtra Act
No.33 of 2016.   The said amendment inserts a proviso after
sub­section (3) of Section 156 which reads thus :
“Provided that, no Magistrate shall order an investigation
under this section against a person who is or was a public
servant as defined under any other law for the time being
in force, in respect of the act done by such public servant
while acting or purporting to act in the discharge of his
official duties, except with the previous sanction under
section 197 of the Code of Criminal Procedure, 1973 or
under any law for the time being in force :
Provided   further   that,   the   sanctioning   authority   shall
take a decision within a period of ninety days from the
date of the receipt of the proposal for sanction and in case
the sanctioning authority fails to take the decision within
the  said  stipulated   period  of  ninety  days,   the  sanction
shall be deemed to have been accorded by the sanctioning
authority”
8 Section   156   of   the   Code   relates   to   the   Police
Officer's   power   to   investigate   a   cognizable   offence   and   it
confers the power on the officer­in­charge of a police station,
who   may   without   order   of   the   Magistrate   investigate   any
cognizable case with a court having jurisdiction over the local
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area within the limits of such station would have power to
inquire into or try.   Sub­section (3) of Section 156 confers a
power   on   the   Magistrate   empowered   under   Section   190   to
order such an investigation.  Where a jurisdiction is exercised
on a complaint petition filed in terms of Section 156(3) or
Section 200 of the Code of Criminal Procedure, the Magistrate
is expected to apply his mind before summoning an accused.
The criminal law cannot be set into motion as a matter of
routine   course   and   what   is   expected   on   the   part   of   the
Magistrate is careful scrutiny of the evidence/material brought
on record by the complainant and to ascertain the truthfulness
of   the   assertions/allegations   and   to   reach   to   a   conclusion
whether any offence has been prima facie committed by any of
the accused.  The exercise of this power by the Magistrate has
been a matter of concern for a considerable long period of time.
The   Hon'ble   Apex   Court   in   case   of     Anil   Kumar   and   ors
1
Versus M.K. Aiyappa,   has reiterated the ambit and scope of
the power of the Magistrate in the following words :
“11 The   scope   of   the   Section   156(3)   Cr.PC
came up for consideration before this Court in several
1 (2013) 10 SCC 705
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cases.   This   Court   in   Maksud   Saiyed   case   (supra)
examined the requirement of the application of mind by
the   Magistrate   before   exercising   jurisdiction   under
Section  156(3)   and  held  that where a jurisdiction  is
exercised on a complaint filed in terms of  Section 156(3)
or   Section 200   Cr.P.C., the Magistrate is required to
apply   his   mind,   in   such   a   case,   the   Special
Judge/Magistrate cannot refer the matter under  Section
156(3)  against a public servant without a valid sanction
order. The application of mind by the Magistrate should
be reflected in the order. The mere statement that he has
gone through the complaint, documents and heard the
complainant, as such, as reflected in the order, will not
be   sufficient.   After   going   through   the   complaint,
documents and hearing the complainant, what weighed
with the Magistrate to order investigation under  Section
156(3)  Cr.P.C., should be reflected in the order, though a
detailed expression of his views is neither required nor
warranted. We have already extracted the order passed
by the learned Special Judge which, in our view, has
stated no reasons for ordering investigation. 
The power conferred was examined in light of Section 19(1) of
the   Public   Accountability   (Vigilance   and   Prevention   of
Corruption Act, 1988), the Apex Court held that the sanction as
contemplated   under   Section   19(1)   is   a   pre­condition   for
ordering   investigation   against   public   servant   under   Section
156(3) of the Code even at pre­cognizance stage.  On the said
point, we deem it appropriate to refer to the observations by
their Lordships in the following words :­
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That the requirement of sanction is only procedural
in nature and hence, directory or else  Section 19(3)
would   be   rendered   otiose.   We   find   it   difficult   to
accept that contention. Sub­section (3) of  Section 19
has   an   object   to   achieve,   which   applies   in
circumstances where a Special Judge has already
rendered a finding, sentence or order. In such an
event, it shall not be reversed or altered by a court in
appeal, confirmation or revision on the ground of
absence of sanction. That does not mean that the
requirement to obtain sanction is not a mandatory
requirement. Once it is noticed that there was no
previous sanction, as already indicated in various
judgments referred to hereinabove, the Magistrate
cannot order investigation against a public servant
while invoking powers under  Section 156(3)  Cr.P.C.
The above legal position, as already indicated, has
been   clearly   spelt   out   in   Paras   Nath   Singh   and
Subramanium Swamy cases (supra).  
14. Further, this Court in Criminal Appeal No. 257
of 2011 in the case of  General Officer, Commanding
v. CBI  and opined as follows: 
“Thus, in view of the above, the law on the issue
of sanction can be summarized to the effect that
the   question   of   sanction   is   of   paramount
importance for protecting a public servant who
has   acted   in   good   faith   while   performing   his
duty. In order that the public servant may not be
unnecessarily   harassed   on   a   complaint   of   an
unscrupulous person, it is obligatory on the part
of the executive authority to protect him….. If the
law   requires   sanction,   and   the   court   proceeds
against  a public  servant  without  sanction,  the
public servant has a right to raise the issue of
jurisdiction as the entire action may be rendered
void ab­initio.” 
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The   exercise   of   power   of   the   Magistrate   again   fell   for
consideration before the Hon'ble Apex Court, this time as a
matter of   serious concern.   In case of   Priyanka Srivastava
2   
And Anr Vs. State of Uttar Pradesh and ors, Their Lordships
were constrained to reiterate the duties and the approach of the
Magistrate while exercising the powers under Section 156(3)
and reiterated that the Magistrate exercising the said power is
expected to be vigilant with regard to the nature of allegation
made in the application and not to issue directions without
proper application of mind.  It was also cautioned that the said
power cannot be invoked by a litigant at his own whims to
harass others but it must be retained as a power which can be
exercised only on a complaint by a principled and a really
agreed citizen approaching the Court with clean hands and this
power should be exercised only where it could be conducive to
justice.   The directives therefore came to be issued to file an
affidavit   supporting   the   allegations   and   we   would   gainfully
refer   to   the   observations   of   the   Hon'ble   Apex   Court   in
paragraph nos.30 and 31.
2 (2015) 6 SCC 287
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30.  In our considered opinion, a stage has come in
this country where  Section 156(3)  Cr.P.C. applications
are to be supported by an affidavit duly sworn by the
applicant who seeks the invocation of the jurisdiction of
the Magistrate. That apart, in an appropriate case, the
learned Magistrate would be well advised to verify the
truth and also can verify the veracity of the allegations.
This affidavit can make the applicant more responsible.
We are compelled to say so as such kind of applications
are being filed in a routine manner without taking any
responsibility   whatsoever   only   to   harass   certain
persons. That apart, it becomes more disturbing and
alarming when one tries to pick up people who are
passing orders under a statutory provision which can
be challenged under the framework of said Act or under
Article 226  of the Constitution of India. But it cannot
be done to take undue advantage in a criminal court as
if somebody is determined to settle the scores.
31 We have already indicated that there has
to   be   prior   applications   under   Section   154(1)   and
154(3)   while   filing   a   petition   under   Section   156(3) .
Both   the   aspects   should   be   clearly   spelt   out   in   the
application   and   necessary   documents   to   that   effect
shall be filed. The warrant for giving a direction that
an the application under   Section 156(3)   be supported
by   an   affidavit   so   that   the   person   making   the
application should be conscious and also endeavour to
see that no false affidavit is made. It is because once an
affidavit   is   found   to   be   false,   he   will   be   liable   for
prosecution in accordance with law. This will deter him
to casually invoke the authority of the Magistrate under
Section 156(3) . That apart, we have already stated that
the veracity of the same can also be verified by the
learned Magistrate, regard being had to the nature of
allegations of the case. We are compelled to say so as a
number   of   cases   pertaining   to   fiscal   sphere,
matrimonial   dispute/family   disputes,   commercial
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offences, medical negligence cases, corruption cases and
the   cases   where   there   is   abnormal   delay/laches   in
initiating criminal prosecution,  as are illustrated  in
Lalita Kumari are being filed. That apart, the learned
Magistrate would also be aware of the delay in lodging
of the FIR.
9 It is in this backdrop, the State of Maharashtra has
amended and inserted the proviso to section 156(3) of the
Code.   By the same amendment, Section 190 of the Code of
Criminal Procedure was also parallelly amended by inserting
identical   proviso   restraining   the   Magistrate   from   taking
cognizance from any offence alleged to have been committed
by a person who is or was a public servant, while acting or
purporting   to   act   in   discharge   of   official   duty   except   with
previous sanction under Section 197 of the Code of Criminal
Procedure or under any law for the time being in force.  By the
said amendment, a restraint has been imposed in directing an
investigation by the Magistrate by virtue of the proviso initiated
in Section 156(3) and in the power of the Magistrate taking
cognizance by the proviso inserted in Section 190.  By virtue of
the said amendment, no complaint can be filed against public
offences without a valid sanction from the competent authority.
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The object of the Maharashtra Amendment aims to protect the
public   officials   against   false   and   frivolous   and   politically
motivated cases.   The observations of the Hon'ble Apex court
which we have referred to above, are clearly indicative of the
trend of misuse of the said power in case where the complaint
is bereft of any truth, it would result in demoralizing public
officials/public servants from exercising their powers bonafidely
and it would result in the huge harassment and unless and until
the entire rigmarole of the proceedings is undergone, there can
be no solace to an honest public official who is purported to
exercise his duty fearlessly and effectively.   By the amendment
inserted in the year 2016, it is not competent for a Magistrate
to order an investigation under Section 156(3) on a complaint
against the public servant in absence of any previous sanction
under Section 197 of the Code of Criminal Procedure.   Shri
Pratap has submitted that he has applied for sanction to the
President of India and there is a deeming sanction.  
10 We   have   noted   that   the   applicant   is   presently
working as a Chief Secretary of the State of Maharashtra and he
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came to be transferred from the post of Commissioner, MMRDA
to the post of Additional Chief Secretary, Finance Department,
th
by   an   order   dated   5   May   2018   passed   by   Government
Administrative Department under the Maharashtra Government
Servants Regulation of Transfers and Prevention  of Delay in
Discharge of Official Duties Act, 2005. Shri Pratap has himself
th
tendered the said order dated 5  May 2018 in the compilation
submitted by him.  The said order is reflective of the fact that
the applicant is in the Indian Administrative Service. As an
officer of the Indian Administrative cadre, appointing authority
of the applicant is the President of India.  However, when the
applicant is appointed in connection with the affairs of the
State, in such contingency, he worked under the control of the
State Government and the applicant in the said capacity cannot
be removed from his office save by or with the sanction of the
State Government and it is the State Government which is the
appropriate authority from whom the contemplated sanction
ought to be obtained.  The applicant was holding the  post of
Commissioner of MMRDA from 2013 .  The MMRDA is a body
of   Government   of   Maharashtra   which   is   responsible   for
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infrastructure   development   of   the   Mumbai   Metropolitan
Region.   It is the body which is set up under the  Mumbai
Metropolitan Region Development Authority Act, 1974 as the
Apex   body   for   planning   and   coordination   of   development
activities in the region.   MMRDA is thus a functionary of the
State Government and the applicant was  holding charge of
Commissioner   of   the   MMDRA   and   exercising   the   power
conferred on him.  There is no dispute that the applicant is a
public servant and in such circumstances, the first proviso of
Section 156(3) is attracted. 
Reliance placed by Shri Pratap on the judgment is
not of any assistance to him since the said judgment do not take
into   consideration   the   Maharashtra   Amendment   to   Section
156(3) of the Code of Criminal Procedure.   The said judgments
are delivered in the context of Section 197 and we need not
take into consideration the said judgments which lay down a
proposition of law to the effect as to who is the sanctioning
authority.     In   case   of   Laksmansingh   Vaghela   Vs.   Naresh
3
Kumar C. Jha & ors ,  the issue before the Hon'ble Apex Court
3 AIR 1990 SC 1976
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was when the offence can be said to be the one committed
while acting or purporting to act in discharge of his official duty
and   the   Apex   Court   held   that   Section   197   of   the   Code   of
Criminal   Procedure   clearly   intends   to   draw   a   line   between
public servant and to provide that only in case of a higher rank,
the sanction of the Government to their prosecution would be
necessary.   The words “removable from office” occurring in
Section 197 also fell for interpretation and it was held that it
signified removal from the office he his holding and thus the
authority was defined as an authority under whom the officer is
serving and who is competent to terminate his services. The
issue involved was also whether in case of a person/accused
who is in service and pay of the local authority whether his
status would stand altered.
11 In   case   of   Ajoy   Acharya   Vs.   State   Bureau   of
4
Investigation against Economic Offence ,   the   Hon'ble   Apex
Court was dealing with an accused charged with Sections 409,
406,   467,   468   and   120B   and   13(1)(d)   and   13(2)   of   the
4 2013X
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Prevention of Corruption Act who came to be nominated as
Director   on   the   Madhya   Pradesh   Industrial   Development
Corporation and investigation was ordered into the affairs of
the said Corporation by the State Government.  The appellant
before the Appellate Court was an IAS officer of 1976 batch and
while holding the charge of post of Commissioner of Industries
of   State   of   Madhya   Pradesh,   he   came   to   be   nominated   as
Director of MPSIDC.  He continued to hold the post  till the year
1998 and since then, he came to be transferred from the post of
Commissioner of Industries, he ceased to be  a member of the
Board of Directors of MPSIDC.   The question which fell for
consideration before the Apex Court was when an accused was
holding plurality of offices, each of which makes him a public
servant,   where   a   sanction   is   essential   from   each   of   the
competent authority and it was held that the sanction would be
necessary only from the competent authority of the office which
he had allegedly misused.  Conclusively, it was held in the facts
of the case that since the appellant was not holding the public
office   which   he   is   alleged   to   have   misused   when   the   first
charge­sheet   was   filed,   there   was   no   need   to   obtain   any
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sanction before proceeding to prosecute him for the offences
alleged.  Now the similar issue do not arise at all.  We fail to
understand   how   the   authoritative   pronouncement   by   the
Hon'ble Apex Court in the aforesaid judgment is of any succor
to the learned counsel representing the complainant.  Here is a
clean   and   clear   case   where   the   applicant   was   working   as
Commissioner of MMRDA which is a wing of the Government
and   later   on,   transferred   to   the   post   of   Additional   Chief
Secretary of State of Maharashtra.   The impugned order is
th
passed by the Magistrate on 25   October 2018 when he was
holding the post of Additional Chief Secretary (Finance), State
of   Maharashtra.     It   was   therefore   incumbent   upon   the
Magistrate to abide by the proviso inserted in Section 156(3) by
the Maharashtra Amendment and without obtaining the said
sanction, the investigation could not have been ordered.  The
impugned   order   which   is   passed   in   ignorance   of   the   said
provision is, therefore, non­est and liable to be struck down.   
12 We have also examined the merits of the complaint
preferred by the respondent no.2.   The core allegation in the
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said   complaint   in   relation   in   relation   to   the   FSI   and   it   is
projected   in   the   said   complaint   that   the   present   applicant
permitted huge construction with an FSI of 2.0 and this FSI was
being sought to be used through an illegal change of use of land
from 'drive­in­theatre' to that of shopping mall, Five Star Hotel
etc and this resulted in illegal pecuniary gain to the private
developers to the tune of thousands of crores in a prime locality
in   the   financial  capital  of  the   country.     The   complaint  has
further alleged that the Coastal Regulation Zone Notification
1991   had   clearly   indicated   that   all   development   activities
proposed to be taken in the area will have to adhere to the
th
norms as existing on 19   February 1991 including the norms
pertaining to FSI.  It is alleged that the land under Reference is
in CRZ area and necessarily had to be developed as per the
th
ruling   prevailing   on   19   February   1991   and   despite   being
aware of this legal scenario when there was no FSI of '2.0'
available for a drive­in­theatre and the permission was only to
construct a drive­in­theatre, the availment of FSI of 2.0 FSI is
illegal.  It is therefore, alleged that the applicant has committed
an offence of criminal misconduct by according large pecuniary
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favour to the accused nos.2 and 3 and therefore, offence under
Section 13(1)(d) of the Prevention of Corruption Act has been
committed.
Though we are prima facie satisfied and expressly
observed in the above paragraphs that the investigation could
not have been ordered by the Magistrate in absence of the
compliance of the proviso inserted in sub­section (3) of Section
156 of the Code of Criminal Procedure as applicable to the
State of Maharashtra, we have also considered the merits of the
allegation contained in the complaint.   The entire case as set
out in the complaint is that the said land at Bandra Kurla
Complex   to   which   a   reference   has   been   made   was   being
developed as 'drive­in­theatre' by using 2.0 FSI, whereas what
was permissible was an FSI of 1.0.  The factual disclosure reveal
that the Urban Development Department itself had clarified its
decision to confer the FSI of 2.0 and on the relevant date of the
th
MOEF notification, the existing FSI was permitted.  As on 19
February 1991, the GDCR was applicable and for commercial
development, it permitted an FSI of 2.0.  The lease deed dated
th
19   February   1991   in   favour   of   the   Indian   Film   Combine
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Pvt.Ltd is also placed on record which would establish that the
user of the land in issue was for activities other than which is a
drive­in­theatre and it permitted its user as restaurant, bar,
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petrol pump etc.  A communication dated 15  July 1999 issued
by the Collector is also placed on record which contemplates
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the said user.  Further, an order is issued on 19  August 1999
by the State Government in terms of the DCR of 1991 and it is
applicable for redevelopment of drive­in­theatre also clarify that
in   redevelopment   proposal   hotel   user   shall   be   permissible,
subject   to   the   relevant   rules   and   regulations   and   the
redevelopment would not amount to deviation of land user
proposal of the Bandra Kurla Complex.  In such circumstances,
since on the relevant date, both FSI 2.0 and commercial user
was admissible and permissible, we find that the complaint is
misfounded and is nothing but a distortion of the factual and
legal position with regard to the land in question in issue as on
the date of the MOEF Notification.  In such circumstances, the
impugned order passed by the authority passed by the Special
Judge   proceeding   on   the   basis   of   the   complaint,   without
verification or application of mind to the facts placed before
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him, in light of the documents produced by the complainant
himself,   in   our   view   cannot   be   sustained   in   law   and   the
impugned  order,  therefore,  deserves  to  be   quashed  and  set
aside.
For   the   reasons   recorded   above,   Criminal
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Application is allowed.  The impugned order dated 25  October
2018   passed   by   the   learned   Special   Judge   (Under   the
Prevention of Corruption Act) for Greater Mumbai, at Mumbai
in ACB Miscellaneous Application No.258 of 2018 is quashed
and set aside.  
No order as to costs.
(SMT. BHARATI H. DANGRE, J.)    (RANJIT V. MORE J.)
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