KANWAL TANUJ vs. THE STATE OF BIHAR

Case Type: Criminal Appeal

Date of Judgment: 24-04-2020

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1 REPORTABLE IN THE SUPREME COURT OF INDIA CRIMINAL APPELLATE JURISDICTION CRIMINAL APPEAL NO. 414 OF 2020 (Arising out of SLP(Crl.) No. 9876 of 2018) Kanwal Tanuj  ….Appellant(s) Versus State of Bihar & Ors.        ….Respondent(s) J U D G M E N T A.M. Khanwilkar, J. 1. Leave granted. 2. This appeal emanates from the judgment and order dated 17.9.2018 passed by the High Court of Judicature at Patna (for short,   “the   High   Court”)   in   Criminal   Writ   Jurisdiction   Case (CWJC)  No.   879/2018,   whereby   the   writ   petition   filed   by   the appellant for quashing of first information report (FIR) being R.C. A.C.­I, 2018A 0002 dated 21.2.2018 registered by the Central Signature Not Verified Bureau   of   Investigation   (for   short,   “the   CBI”)   under   Sections Digitally signed by DEEPAK SINGH Date: 2020.04.24 15:21:52 IST Reason: 120B, 420, 467, 468 and 471 of the Indian Penal Code (for short, 2 “the   IPC”)   read   with   Section   13(1)(d)   of   the   Prevention   of Corruption Act, 1988 (for short, “the PC Act”) came to be rejected. 3. The principal ground canvassed by the appellant before the High   Court   was   that   he   being   an   officer   of   the   Indian Administrative   Service   (IAS)   employed   in   connection   with   the affairs   of   the   Government   of   Bihar   as   District   Magistrate   at Aurangabad District (State of Bihar) could not be subjected to investigation by the CBI without the prior consent of the State.   4. The appellant has been named as an accused alongwith one Shri C. Sivakumar, CEO, Bhartiya Rail Bijli Company Limited (for short, “BRBCL”), Nabinagar, District Aurangabad, Bihar on the basis   of   FIR   registered   by   the   CBI   pursuant   to   information received from a reliable source alleging as follows: ­ “A   reliable   source   information   has   been   received   that Bhartiya   Rail   Bijlee   Company   Limited   (BRBCL),   a subsidiary of NTPC Ltd. is constructing four units of 250 MW   at   Nabinagar   in   Aurangabad   District   (Bihar).   The joint venture project has been developed by Bhartiya Rail Bijlee Company Limited (BRBCL) with NTPC having 74 percent  share, while the Ministry of Railways with the remaining   26   percent.   Indian   Railways   would   get   90 percent and the state of Bihar would get ten percent of the   power   generated   from   BRBCL’s   plants.   The construction work of BRBCL was proposed in the 2005­06 Union   Budget   and   the   Central   Govt.   approved   the company in February 2007 but work on the plant was delayed due to land acquisition problems at Nabinagar. Actual work on BRBCL power plants started in 2008­09. The   four   units   of   BRBCL   plant   are   proposed   to   be 3 constructed on around 1,500 acres of land at Nabinagar and all of them are to be completed at a revised cost of around Rs.8,100 crore.  2. Information   further   revealed   that   large   scale corruption and siphoning of government funds has taken place in the land acquisition for the plant of Bhartiya Rail Bijlee Company Limited (BRBCL) by the BRBCL officials in criminat connivance with Local District Administration. A specific instance has been formed by  source in this regard   pertaining   to   acquisition   of   tL.57   acre   land   of Khata No.12, plot No.1, of Mauja Kajrine for the Thermal Power Project at Nabinagar in the District of Aurangabad (Bihar). The proposal to acquire land has already been approved by the State Government of Bihar along with the compensation   amount   payable   to   the   owner   of   the acquired lands.  3. Information also  revealed  that  initially   vide  letter No.452,   dated   22.06.2015,   Circle   Officer,   Nabinagar informed Chief Executive Officer, BRBCL, Nabinagar that there was no claimant for land 7.09 acre pertaining to Khata No.12, plot No.1 of Mauja Kajrine. In this regard BRBCL   issued   a   letter   to   Circle   Officer,   Nabinagar   on 15.01.2016 that company had no objection if aforesaid left out land was transferred to company (BRBCL).  4. It has been further revealed by a source that Shri C. Shiv   Kumar,   CEO,   BRBCL,   Nabinagar   entered   into   a criminal   conspiracy   with   Shri   Kanwal   Tanuj,   District Magistrate, Aurangabad District (Bihar), other unknown officers/officials of BRBCL, local District Administration and   Shri   Gopal   prasad   singh   (now   deceased).   In furtherance of the said criminal conspiracy, Shri Kanwal Tanuj,   District   Magistrate,   Aurangabad   District   (Bihar) got false documents of Khata No.12, plot No.1 of Mauja Kajrine   prepared   in   respect   of   one   shri   Gopal   prasad singh (now deceased) s/o Late Kesho Prasad singh, R/o­ Nabinagar   District­   Aurangabad   (Bihar).   Some   false receipts of Lagan for the period 1988­89 to 2016­17, some other related papers/returns of above land shown to be purchased from Shri Mukund Lal (Jamindar), who was never jamindar (Land lord) of the area were prepared and submitted for claim/compensation in the name of Gopal Prasad Singh (now deceased).  5. It was then fraudulently directed by Shri Kanwal Tanuj,   DM,   Aurangabad   that   7.45   acre   land   in   Khata No.12, Plot No.1 of Mauja Kajrine be recorded in the name of Shri Gopal Prasad Singh (now deceased) and the matter 4 may   be   further   processed   accordingly.   Circle   Officer, Nabinagar sent a letter No.74, dated 11.03.2017 to Chief­ Executive officer BRBCL for purchasing of the land from the owner Shri Gopal Prasad Singh (now deceased), Circle Officer, Nabinagar thereafter issued another letter dated 25.03.2017 to BRBCL recalling his previous letter dated 22.06.2015 and informed that 7.45 acres out of the total land in Khata No.12, plot No.1 of Mauja Kajrine has been registered in name of Shri Gopal Prasad Singh. The circle officer further informed BRBCL that 6.545 acres falling in the Ash Dyke area in the above mentioned plot was being earmarked/acquired   for   the   BRBCL   and   directed   the BRBCL to purchase the said land from the owner Shri Gopal Prasad Singh and 0.905 acres from the Govt. Land was being transferred to BRBCL for the purpose of the plant.  6. Source   information   also   revealed   that   as   per procedure possession of land is taken in the presence of land owners after identification of their land but when BRBCL officers along with other officers visited the site on 11 & 12.04.2017 for possession of the aforesaid land, the claimant   Gopal   prasad   singh   (now   deceased)   allegedly could not identify his own land and many villagers, who gathered there opposed that the said land was not owned by Shri Gopal Prasad Singh (now deceased). In this regard a video/CD was also prepared at the spot. In furtherance of the conspiracy, vide letter 1707 dated 26.05.2017 Shri Kanwal   Tanuj,   DM,   Aurangabad   thereafter   directed BRBCL to make payment of compensation for the land (Khata   No.12,   Plot   No.1,   of   Mauja   Kajrine)   to   Gopal Prasad Singh (now deceased) within 48 hours. Vide letter No.151,   dated   12.06.2017   Shri   C.   Shiv   Kumar,   CEO, BRBCL, Nabinagar made payment of Rs.2,07,84,583/­ to Shri Gopal Prasad Singh (now deceased) despite having the knowledge that Shri Gopal Prasad Singh could not identify the land and many villagers who had gathered there opposed that the said land was not owned by Shri Gopal Prasad Singh (now deceased).  7. Source   has   further   informed   that   an   a/c.   Payee Cheque   No.382774,   dated   29.05.2017   for Rs.2,07,84,583/­   was   issued   from   account No.30450307785 by Bhartiya Rail Bijlee Co. Ltd. in favour of Shri Gopal Prasad Singh (now deceased) and same was credited in a/c number 6082000100097579 of Shri Gopal Prasad   Singh   (now   deceased)   maintained   in   SBI, Nabinagar   branch,   District­Aurangabad   (Bihar).   This amount was transferred via RTGS/SBINR520170529 in 5 this account and subsequently the money was withdrawn. Thus, BRBCL was caused a wrongful loss to the tune of Rs.2,07,84,5831­   and   corresponding   wrongful   gain   to themselves.  8. The   above   facts   and   circumstances   prima­facie disclose commission of offences punishable U/s. 120­B, 420, 467, 468 & 471 IPC and Section 73(2) r/w Section 13   (1)   (d)   of   the   P.C.   Act,   1988   against   Shri   C.   Shiv Kumar, CEO, BRBCL Nabinagar, Shri Kanwal Tanuj, DM, Aurangabad   and   other   unknown   public   servants   of BRBCL   and   local   administration   and   other   private persons.  A   Regular   case   is,   therefore,   registered   and entrusted to Shri Pramod Kumar, Dy. Supdt. of police CBI,   AC­I,   New   Delhi   Supdt.   of   Police,   CBI/AC­I,   New Delhi for investigation and report.” 5. As aforesaid, the appellant filed writ petition for quashing of the said FIR on the ground that it does not disclose any criminal offence against the appellant and for a declaration that it has been   lodged   against   the   appellant   (a   State   Government employee), without prior permission of the State Government and was thus in violation of Section 6 of the Delhi Special Police Establishment Act, 1946 (for short, “the 1946 Act”).   In other words, the FIR has been registered without jurisdiction and is void  ab initio .   6. The High Court after considering the grounds of challenge, proceeded to hold that BRBCL is an “affiliate” or “associate” in relation to National Thermal Power Company (NTPC) Ltd. and the Railways respectively.  The registered office of BRBCL was in the 6 Union Territory of Delhi (National Capital Territory of Delhi) and the allegation regarding defrauding the said undertaking (BRBCL) and siphoning of funds had occurred in the Union Territory of Delhi   (National   Capital   Territory   of   Delhi).     The   funds   for implementation of the project through BRBCL were provided by the Central Government in terms of the Union Budget proposed in   the   year   2005­06.     The   High   Court   then   concluded   that criminal conspiracy for committing the offence was thus hatched at Delhi and for all these reasons, the CBI was competent to register FIR at Delhi and to carry on investigation in that regard. Additionally, the High Court referred to the notification dated 19.2.1996 issued by the State Government of Bihar according consent to all members of the Delhi Special Police Establishment (for short, “the DSPE”) to exercise powers and jurisdiction under the 1946 Act in the whole of the State of Bihar in respect of the stated offences.  The said notification reads thus: ­ “NO.3/Vividh­6019/96 Government of Bihar Home (Police) Department  Notification       Patna the          February, 1996 7 O.O. No.____________/­ In exercise of the powers conferred by section 6 of the Delhi Special Police Establishment Act. 1945   (Act   XXV   of   1945),   and   in   supersession   of   all previous   notifications   on   the   subject   the   Governor   of Bihar is pleased to accord his consent to all members of the Delhi Special Police Establishment to exercise powers and jurisdiction under the said Act in whole of the State of Bihar in respect of the investigation of the followings:­ (a) Offences committed in connection with the affairs of the Govt. of India, Local authority subject to the control of the Government of India or any corporation, company or Bank owned or controlled by the Govt. of India.  (i)   punishable   under   the   prevention   of   corruption   Act, 1947 (Act 2 of 1947); (ii) punishable under Section 403, 406, 407, 408, 409, 411, 412, 413, 414, 417, 418, 419, 420, 465, 466, 467, 468, 471 and 477­A of the Indian Penal Code (45 of 1860); and  (iii) attempts, abetments and conspiracies in relation to, or in connection with the offences mentioned in clause (i) and (ii) above any other offence committed in the course of the same transaction arising out of the same facts.  (b) offences   punishable   under   the   Central   Acts specified in the Annexure appended hereto,  Provided  that  where  public  servants employed  in connection with the affairs of the Government of Bihar and persons employed in connection with the affairs of any   local   authority   subject   to   the   control   of   the Government   of   Bihar   or   any   corporation,   company   or Bank owned or controlled by the Government of Bihar or any institution receiving or having received any financial aid   from   the   Government   of   Bihar   are   concerned   in offences referred to in items a(i) to (iii) and (b) above, the prior consent of the State Government shall be obtained for   the   investigation   of   any   such   offence   by   the   Delhi Special Police Establishment.  File No.1/Vividh­6019/96)              By order of Governor of Bihar Sd/­­­ (D.P. Maheshwari) 8 Commissioner & Secretary        Home Department” The High Court negatived the argument of the appellant that the proviso   in   the   said   notification   restricted   the   general   consent accorded by the State.   It was urged by the appellant that the purport of the proviso was to make it amply clear that no consent was given by the State Government in terms of Section 6 of the 1946   Act   to   authorise   the   members   of   the   DSPE   to   exercise powers and jurisdiction under the 1946 Act in respect of offences in which public servants employed in connection with the affairs of the Government of Bihar were allegedly involved.  Investigation in respect of such cases could be undertaken only after taking prior   consent   of   the   State   Government   of   Bihar   and   not otherwise.   7. The   High   Court   noted   that   it   was   not   the   case   of   the appellant that the offences referred to in the subject FIR were not covered by the notification issued by the Central Government in terms of Section 3 of the 1946 Act.  The High Court held that the investigation in the present case had begun in respect of affairs of   an   agent   of   a   public   sector   undertaking   and   the   Central Government   through   Ministry   of   Railways   with   regard   to 9 siphoning   of   funds   by   the   agent   entering   into   a   criminal conspiracy with some persons who incidentally reside outside the Union Territory.   Investigation  qua   them could be proceeded by the CBI without the consent of the concerned State Government where the co­accused resided.  The High Court in paragraphs 46 and 48 noted thus: ­ “46.   Once   the   offences   or   the   classes   of   offences   are covered   under   the   notification   issued   by   the   Central Government in terms of Section 3 and the offences alleged are said to be in respect of the funds of the government being siphoned through its agent which is a corporate body   and   a   government   company   through   its   Chief Executive   Officer   and   the   registered   office   of   the   said corporate   body   is   in   the   Union   Territory   of   Delhi,   the institution of the FIR as well as the investigation taken up pursuant thereto cannot be stopped and no consent of the government of Bihar would be required to investigate the persons   involved   in   commission   of   the   offence.   Such person may be an officer working in connection with the affairs   of   the   State   of   Bihar,   but   where   the   offences alleged   are   in   connection   with   the   funds   of   the Government   of   India   through   its   agent   a   government company having its registered office at Union Territory of Delhi,   it   would   be   immaterial   that   any   other   person involved in commission of the said offence is working in connection with the affairs of the State Government. In the   facts   of   the   present   case,   this   Court   is   of   the considered   opinion   that   no   consent   of   the   State Government in terms of Section 6 of the DSPE Act, 1946 would be required. xxx xxx xxx 48. Even though learned Senior  counsel representing the   petitioner   submits   that   in   the   present   case   the B.R.B.C.L.   cannot   be   said   to   be   a   company   owned   or controlled by the Central Government, this Court is of the considered opinion that first part of the notification dated 19.02.1996 in so far as it states that the consent of the government is in respect of the investigation of the offence 10 committed   in   connection   with   the   affairs   of   the Government of India, local authority subject to the control of the Government of India, local authority subject to the control of the Government of India or any Corporation, Company   or   Bank   owned   and   controlled   by   the Government of India cannot be given a narrow meaning.” While dealing with the proviso in the subject notification dated 19.2.1996, the High Court in paragraphs 57 and 58 observed thus:­ “57. The   proviso   to   the   notification   dated   19.02.1996 issued by the Government of Bihar cannot come to the rescue of the petitioner in the present set of facts and circumstances where the C.B.I. while investigating a case involving   a   government   company   who   is   acting   as   an agent of the public sector undertaking and Ministry of Railways finds that some more persons including those who are public servants presently working and serving under the Government of Bihar are also involved in the conspiracy   which   has   an   ultimate   effect   of   causing unlawful   loss   to   the   principal   for   which   the   agent   is working,   no   individual   consent   would   be   required   in terms of Section 6 of the D.S.P.E. Act.  58. The   contention   of   the   learned   Senior   Counsel based   on   the   proviso   part   of   the   notification   dated 19.02.1996   could   have   been   worth   consideration   if   it could   have   been   shown   to   this   Court   that   the   entire alleged   offence   in   respect   of   which   the   C.B.I.   has assumed jurisdiction to investigate relate to an affairs of the State of Bihar. This Court would, therefore, reiterate that in the facts situation of the present case no consent at all would be required from the Government of Bihar.” The High Court accordingly rejected the challenge put forth by the appellant  and   dismissed  the  writ petition  being   devoid   of merit. 11 8. The appellant has reiterated the grounds urged before the High Court and would contend that CBI could not have registered the FIR much less investigated the same without prior consent of the   State   of   Bihar   in   that   regard.     The   notification   dated 19.2.1996 does not authorise the CBI to register cases against the public servants employed in connection with the affairs of the Government of Bihar.  In support of this submission, reliance has been placed on the decisions in  State of West Bengal & Ors. vs.   Committee   for   Protection   of   Democratic   Rights,   West 1 2 Bengal & Ors. , Ms. Mayawati vs. Union of India & Ors.  and M.   Balakrishna   Reddy   vs.   Director,   Central   Bureau   of 3 Investigation, New Delhi .  It is urged that the interpretation by the High Court regarding the purport of the subject notification dated   19.2.1996   is   flawed;   and,   is   in   teeth   of   the   express stipulation in the proviso thereof.  It is urged that any other view would result in impacting the federal structure of the country, which is the basic feature of the Constitution of India.  Further, the general consent accorded by the State of Bihar vide stated notification   is   a   conditional   one   for   exercise   of   powers   and 1 (2010) 3 SCC 571 2 (2012) 8 SCC 106 3 (2008) 4 SCC 409 12 jurisdiction   by   the   officials   of   the   DSPE.     The   appellant   has drawn our attention to the expression “may” used in Sections 3 and  5 of   the   1946   Act  in  contradistinction  to  the   expression “shall” in Section 6 and would urge that the requirement of prior unambiguous   consent   of   the   State   Government   is   the   pre­ requisite and  sine qua non  to empower the officials of the DSPE. The appellant has also pointed out that the nature of allegation in   the   FIR   against   the   appellant   disregards   the   factual background in which the declaration in favour of Gopal Prasad Singh regarding the land bearing Khata No. 12, Plot number 1 of Mauja Kajrain was issued after due evaluation of his claim in the hierarchy of administrative set up right from Anchal Amin upto Additional District Magistrate, which process went on from 1971 as is manifest from the official record.  It is thus urged that the alleged act of the appellant was done in official capacity and was protected   by   Section   79   of   the   IPC.     The   CBI   ought   to   have undertaken preliminary enquiry before rushing  to register the FIR on the basis of source information.  Even for that reason, the action of CBI cannot be countenanced ­ not being in conformity with the CBI Manual.  It is urged that the FIR does not disclose any offence   the appellant and that it was registered without qua 13 offering any explanation for the inordinate delay.   Finally, it is urged that the registration of FIR itself was barred by Section 6 of the 1946 Act read with notification dated 19.2.1996. 9. The State of Bihar has supported the claim of the appellant on the question of law by contending that Policing is a State subject under Entry 2 List II of Schedule VII of the Constitution. Hence,   having   due   regard   to   the   federal   structure   recognised under the Constitution, provision such as Section 6 of the 1946 Act has been incorporated.   According to the State, combined reading of Sections 2, 3, 5 and 6 of the 1946 Act would show that DSPE   has   jurisdiction   to   investigate   offences   notified   under Section 3 in any Union Territory;  the use of the expression “may” in   Sections   3   and   5   is   indicative   that   it   is   only   an   enabling provision, enabling the Central Government to extend the area of operation of DSPE to any area in the State by an order.   The order under Section 5, however, is made subject to the condition predicated in Section 6, namely, it would come into effect only after consent of the concerned State Government is accorded. For, Section 6 uses the expression “shall”, which is suggestive of the fact that the said requirement is mandatory in nature and 14 without such prior consent of the State, DSPE would not get jurisdiction to enter upon investigation of the specified offences and exercise its powers and jurisdiction in any area of a State. As regards the notification dated 19.2.1996, it is urged by the State that it is a general consent, making it amply clear that prior consent to investigate cases against the public servants employed in   connection   with   the   affairs   of   the   Government   of   Bihar   is essential.     That   requirement   has   not   been   dispensed   with   in terms of the proviso in the subject notification.  It is always open to the State to accord partial consent on the terms specified in the notification.   As the State is variously concerned about the actions of its employees including the subject of Policing being a State subject, it is urged that the DSPE ought to have intimated the   State   about   the   acts   of   commission   and   omission   of   the officers of the State, so that the State could have examined the same and resorted to appropriate action as per law.  The State is also relying on the exposition in   Committee for Protection of Democratic Rights, West Bengal   (supra).   It is urged by the State that no consent has been obtained by the DSPE in terms of the proviso, although  the  allegations in the  FIR registered  by 15 them against the appellant who is a State Government employee are in connection with the affairs of the State. 10. The learned Additional Solicitor General appearing for the CBI has adopted the reasons noted by the High Court.  He has urged that the occupation/residence of one of the accused cannot come in the way of DSPE to carry on the investigation in respect of   offence   of   conspiracy   to   defraud   the   Government   of   India undertaking   whose   registered   office   is   at   Delhi   and   moreso because  the   siphoning   of   funds   of   the   undertaking   has   been committed within the territory of Delhi.  The investigation of such a   case   cannot   be   regarded   as   in   respect   of   an   offence independently   committed   by   the   public   servant   employed   in connection with the affairs of the Government of Bihar as such. As a result, no consent of any State to investigate such an office would be necessary.   As a matter of fact, no State would have jurisdiction to enquire into or investigate the offence committed in relation to the Government of India undertaking registered in the territory of Delhi.  Similarly, only the Courts in Delhi would have jurisdiction to take cognizance of the stated offence.   In such a situation, the occupation or status of the accused or his 16 residence   cannot   be   the   basis   to   constrict   the   powers   of   the investigating agency (DSPE) in any manner.  It is urged that if the argument of the appellant is accepted, that would have serious implications.  For, in cases where the DSPE during the course of investigation of specified crimes committed in Union Territory is confronted   with   the   accused   employed/residing   in   different States, it would require the DSPE to obtain consent of every such State wherever the accused resides and is an employee of that State.   That cannot be the intention of law in empowering the special police establishment (DSPE) to investigate specified and notified   offences   committed   within   the   Union   Territory.     The harmonious and purposive construction of the provisions of the 1946 Act, in particular Section 5 thereof, would be to confine the consent of the State Government under Section 6 in respect of investigation   of   crime   exclusively   committed   within   the jurisdiction of that State.  In other words, no consent would be required in respect of specified offence(s) committed within the Union Territory, which could be investigated only by the DSPE under Sections 2 and 3 of the 1946 Act throughout India.  Any other   interpretation   would   render   the   dispensation   regarding investigation of specified offences committed within the Union 17 Territory otiose.  This is moreso because the State would have no jurisdiction   to   investigate   such   offence   committed   within   the jurisdiction of the Union Territory.  Resultantly, the question of obtaining consent of the State merely because one of the accused involved in the offence happens to be residing in that State or is a public servant of that State, is not contemplated by law.  It is also urged that the proviso to the subject notification dated 19.2.1996 has   the   effect   of   defeating   the   purpose   for   which   special legislation   has   been   enacted   and   dispensation   thereunder   for investigation of specified offences is established. 11. Relying   on   the   exposition   of   the   Constitution   Bench   in Subramanian   Swamy   vs.   Director,   Central   Bureau   of 4 Investigation & Anr. , it is urged that the principle underlying the declaration of provisions such as Section 6A of the 1946 Act being   ultra  vires ,   must  apply   to   the   proviso   which  is   part  of notification being an executive instruction classifying offenders differently   for   treatment   thereunder,   including   investigation  of offences and prosecution for offences, according to their status in life on account of being employed in connection with the affairs of the Government of Bihar.  That is impermissible and cannot be 4 (2014) 8 SCC 682 18 countenanced as it defeats the purpose of finding   prima facie truth into the allegations of the specified crime, as every person accused of committing the same offence is to be dealt with in the same   manner   in   accordance   with   law,   which   is   equal   in   its application to everyone.    The  alleged  acts  of  commission and omission of the appellant in the State of Bihar would not alter the substratum of the offence or crime in question stated to have been committed to defraud the Government undertaking (BRBCL) and resultantly siphoning of its funds within the Union Territory of Delhi (National Capital Territory of Delhi).   12. Our   attention   is   also   invited   by   the   learned   Additional Solicitor General to a recent decision of the Delhi High Court in 5 , which has upheld Anand Agarwal vs. Union of India & Ors. the stand taken by the CBI that requirement of consent of the State   is   premised   on   the   basis   that   the   specified   offence   or offences committed and under investigation, have taken place in the State (outside the Union Territory).  The Delhi High Court has agreed with the view taken by the High Court of Judicature at Patna in the impugned judgment.  It is urged that the appeal be dismissed being devoid of merit. 5 (2018) SCC Online Del 11713 19 13. After cogitating over the rival submissions, the core issue which arises for consideration in the present case is: whether the proviso in the stated notification dated 19.2.1996 would come in the way of the officials of DSPE to register FIR and carry on investigation of specified offences committed within the Union Territory (National Capital Territory of Delhi), to which the 1946 Act applies?   14. The   1946   Act   has   been   enacted   to   make   provision   for constitution of a special police force in Delhi for the investigation of certain offences (committed) in the Union Territories, for the superintendence and administration of the said force and for the extension to other areas of the powers and jurisdiction of the members in regard to the investigation of the said offences.  This Act applies to the whole of India.   Section 2 of the 1946 Act enables the Central Government to constitute a special force to be called DSPE for the investigation in any Union Territory of specified offences notified under Section 3.  Section 3 of the 1946 Act enables the Central Government, by notification in the official gazette to specify the offences or classes of offences which are to be investigated by the DSPE.  It is not in dispute that the offences 20 referred to in the subject FIR are so specified by the notification issued under Section 3.   15. The consequence of establishing a special police force under Section 2 is to empower the members of the said police force to exercise   all   the   powers,   duties,   privileges   and   liabilities throughout the Union Territory in relation to the investigation of specified offences, which police officers of that Union Territory have in connection with the investigation of offences committed therein.  By virtue of sub­Section (3) of Section 2 of the 1946 Act, any member of the said establishment of or above the rank of Sub­Inspector   may,   subject   to   any   orders   which   the   Central Government   may   make   in   this   behalf,   exercise   in   any   Union Territory any of the powers of the officer in charge of a police station in the area in which he is for the time being and when so exercising   such   powers   shall,   subject  to   any   such   orders,   be deemed to be an officer in charge of a police station discharging the functions of such an officer within the limits of his station. Resultantly,   specified   offences   committed   within   the   Union Territories   are   required   to   be   investigated   exclusively   by   the special police force constituted for that purpose.   21 16. The purport of Section 5 of the 1946 Act is to enable the Central   Government   to   extend   the   powers   and   jurisdiction   of members of the DSPE for the investigation of any offence or class of offences specified in the notification under Section 3, in a State not   being   a   Union   Territory.     Such   extension   of   powers   and jurisdiction   of   members   of   the   special   police   force   becomes necessary in respect of specified offences “committed outside the jurisdiction of the Union Territory” referred to in Sections 2 and 3 of the 1946 Act.  However, in keeping with the federal structure of the Constitution which is fundamental to the Constitution, consent of such a State has been made essential, as predicated in Section 6 of the 1946 Act.  Sections 5 and 6 of the 1946 Act read thus: ­ “ 5. Extension of powers and jurisdiction of special police establishment to other areas. —(1) The Central Government may by order extend to any area (including Railway areas), in a State, not being a Union territory the powers and jurisdiction of members of the Delhi Special Police Establishment for the investigation of any offences or   classes   of   offences   specified   in   a   notification   under section 3. (2)  When by an order under sub­section (1) the powers and   jurisdiction   of   members   of   the   said   police establishment are extended to any such area, a member thereof   may,   subject   of   any   orders   which   the   Central Government   may   make   in   this   behalf,   discharge   the functions of a police officer in that area and shall, while so discharging such functions, be deemed to be a member of   a   police   force   of   that   area   and   be   vested   with   the 22 powers, functions and privileges and be subject to the liabilities of a police officer belonging to that police force.  (3)  Where   any   such   order   under   sub­section   (1)   is made in relation to any area, then, without prejudice to the provisions of sub­section (2), any member of the Delhi Special Police Establishment of or above the rank of Sub­ Inspector may, subject to any orders which the Central Government may make in this behalf, exercise the powers of the officer in charge of a police station in that area and when so exercising such powers, shall be deemed to be an officer   incharge   of   a   police   station   discharging   the functions   of   such   an   officer   within   the   limits   of   his station. 6.  Consent   of   State   Government   to   exercise   of —Nothing contained in section 5 powers and jurisdiction. shall be deemed to enable any member of the Delhi Special Police Establishment to exercise powers and jurisdiction in any area in a State, not being a Union territory or railway area,   without   the   consent   of   the   Government   of   that State.” Such a consent may not be necessary regarding the investigation by the special police force (DSPE) in respect of specified offences committed within Union Territory and other offences associated therewith.  That may be so, even if one of the accused involved in the given case may be residing or employed in some other State (outside the Union Territory) including in connection with the affairs of the State/local body/corporation, company or bank of the   State   or   controlled   by   the   State/institution   receiving   or having received financial aid from State Government, as the case may be.  Taking any other view would require the special police force   to   comply   with   the   formality   of   taking   consent   for 23 investigation   even   in   relation   to   specified   offence   committed within Union Territory, from the concerned State merely because of the fortuitous situation that part of the associated offence is committed in other State and the accused involved in the offence is residing in or employed in connection with the affairs of that State.   Such interpretation would result in an absurd situation especially when the 1946 Act extends to the whole of India and the   special   police   force   has   been   constituted   with   a   special purpose for investigation of specified offences committed within the Union Territory, in terms of notification issued under Section 3 of the 1946 Act. 17. This Court in     (supra) expounded M. Balakrishna Reddy the purport of Sections 3, 5 and 6 of the 1946 Act and observed in paragraph 19 as under: ­
“19. Plain reading of the above provisions goes to show<br>that for exercise of jurisdiction by CBI in a State (other<br>than Union Territory or Railway area), consent of the<br>State Government is necessary. In other words, before the<br>provisions of the Delhi Act are invoked to exercise power<br>and jurisdiction by Special Police Establishment in any<br>State, the following conditions must be fulfilled:
(i) A notification must be issued by the Central<br>Government specifying the offences to be<br>investigated by Delhi Special Police Establishment<br>(Section 3);
(ii) An order must be passed by the Central<br>Government extending the powers and jurisdiction
24
of Delhi Special Police Establishment to any State<br>in respect of the offences specified under Section 3<br>(Section 5); and
(iii) Consent of the State Government must be<br>obtained for the exercise of powers by Delhi Special<br>Police Establishment in the State (Section 6).”
This judgment dealt with a case where offence was committed in the State of Madhya Pradesh in the year 1996, which had already accorded consent under Section 6, but the accused at the time when the case was registered, was working in a different State i.e. the State of Uttar Pradesh.  The challenge in that case was to the order which according to the appellant therein, did not fulfil the elements of Section 6 of the 1946 Act.  That challenge came to be negatived by this Court in paragraphs 69 and 71 of the reported judgment, in the following words: ­ “ 69. In the present case, the decision produced by the respondent along with the counter­affidavit filed by the Superintendent of Police, CBI, Bhopal clearly sets out all the particulars required by Section 6 of the Delhi Act. It refers   to   the   file/reference   number,   name   of   the department, the authority from whom it was issued and communicated   to   the   department   concerned   of   the Central Government. It, therefore, cannot be said that the State Government had not granted consent under Section 6 of the Delhi Act. xxx xxx xxx 71.   A closer scrutiny of the relevant provisions of the Delhi Act also add credence to the view which we are inclined   to   take.   Section   3   refers   to   “notification”   and requires   the   Central   Government   to   issue   notification specifying offences or class of offences to be investigated by Special Police Establishment. Section 5 uses the term “ order ”  and  enables the Central  Government  to extend 25
powers and jurisdiction of Special Police Establishment to<br>other areas not covered by the Act. Section 6 which<br>speaks of consent of the State Government for the<br>exercise of powers and jurisdiction of the Special<br>Establishment neither refers to “notification” nor “order”.<br>It merely requires consent of the State Government for the<br>application of the Delhi Act. Parliament, in our considered<br>opinion, advisedly and deliberately did not specify the<br>mode, method or manner for granting consent though in<br>two preceding sections such mode was provided. If it<br>intended that such consent should be in a particular<br>form, it would certainly have provided the form as it was<br>aware of different forms of exercise of power. It, therefore,<br>depends on the facts of each case whether the consent<br>required by Section 6 of the Delhi Act has or has not been<br>given by the State Government and no rule of universal<br>application can be laid down.”
18. The High Court, in the present case, after analysing the material on record clearly found that BRBCL was a Government undertaking and the project undertaken by it was funded by the Central Government and that it had its registered office in the Union   Territory   of   Delhi   (National   Capital   Territory   of   Delhi), where the offence of defrauding the undertaking (BRBCL) and siphoning   of   its   funds   was   allegedly   committed.     We   see   no reason to deviate from the opinion so recorded by the High Court. 19. The appellant, however, would rely on the allegations in the subject FIR to contend that the role of the appellant at best is in respect of certain official duty in connection with the affairs of the Government of Bihar.  This submission overlooks the substratum of the allegations in the FIR, as registered by the CBI against the 26 CEO of BRBCL – Shri C. Sivakumar and the appellant being co­ accused   (party   to   the   conspiracy)   regarding   defrauding   the Government of India undertaking (BRBCL) having its registered office at Delhi (Union Territory) and siphoning of its funds.  The alleged role played by the appellant may be a means to facilitate the commission of crime of defrauding and siphoning of funds. The FIR in that sense is not limited to an offence of manipulation of official records of the State of Bihar as such, but is about the means   used   by   the   different   actors   who   were   party   to   the conspiracy in defrauding the Government of India undertaking (BRBCL) and siphoning of its funds.   20. Indisputably, the registered office of BRBCL is within the jurisdiction of Union Territory of Delhi (National Capital Territory of Delhi) and allegedly the offence has been committed at Delhi, for which reason the Delhi Court will have jurisdiction to take cognizance thereof.  To put it differently, the offence in question has been committed outside the State of Bihar.  The investigation of the stated offence may incidentally transcend to the territory of State of Bihar because of the acts of commission and omission of the   appellant   who   is   resident   of   that   State   and   employed   in 27 connection with the affairs of the State of Bihar.  That, however, cannot   come   in   the   way   of   special   police   force   (DSPE)   from investigating the offence committed at Delhi and has been so registered by it and is being investigated.  Had it been an offence limited   to   manipulation   of   official   record   of   the   State   and involvement of officials of the State of Bihar, it would have been a different matter.  It is not the case of the appellant or the State of Bihar that even an offence accomplished at Delhi of defrauding of the Government of India undertaking (having registered office at Delhi)   and   siphoning   of   the   funds   thereof   at   Delhi   can   be investigated by the State of Bihar.  If the State police has had no jurisdiction to investigate the offence in question, as registered, then, seeking consent of the State in respect of such offence does not   arise.     Any   other   approach   would   render   the   special provisions of the 1946 Act otiose. 21. In any case, the respondent­State having granted general consent in terms of Section 6 of the 1946 Act vide notification dated 19.2.1996, it is not open to it to argue to the contrary.  The respondent­State cannot be allowed to approbate and reprobate.   28 22. Indeed,   the   said   notification   contains   a   proviso,   which predicates that if any public servant employed in connection with the affairs of the Government of Bihar is concerned in offences being investigated by the special police force pursuant to the notification, prior consent of the State Government  qua  him shall be   obtained.     This   proviso   must   operate   limited   to   cases   or offences which have been committed within the territory of the State of Bihar.  If the specified offence is committed outside the State of Bihar, as in this case in Delhi, the State police will have no jurisdiction to investigate such offence and for which reason seeking consent of the State to investigate the same would not arise.  In our opinion, the stated proviso will have no application to   the   offence   in   question   and   thus   the   Delhi   special   police force/DSPE (CBI) must be held to be competent to register the FIR at Delhi and also to investigate the same without the consent of the State. 23. Even otherwise, the proviso has the effect of differentiating and   classifying   offenders   differently   for   treatment   thereunder, including investigation of offences and prosecution for offences on the basis of being public servant employed in connection with 29 the affairs of the Government of Bihar.  The power bestowed on special police force in terms of Sections 2 and 3 of the 1946 Act cannot be undermined by an executive instruction in the form of proviso.  Dealing with a similar challenge to a statutory provision ­ Section 6A of the Act, the Constitution Bench of this Court in Subramanian Swamy  (supra) held that sub­Section (1) thereof was invalid and violative of Article 14 of the Constitution.   In paragraphs   61   and   68   of   the   said   decision,   the   Court   noted thus:­
“61. The essence of police investigation is skillful<br>inquiry and collection of material and evidence in a<br>manner by which the potential culpable individuals are<br>not forewarned. The previous approval from the<br>Government necessarily required under Section 6­A<br>would result in indirectly putting to notice the officers<br>to be investigated before the commencement of<br>investigation. Moreover, if CBI is not even allowed to<br>verify complaints by preliminary enquiry, how can the case<br>move forward? A preliminary enquiry is intended to<br>ascertain whether a prima facie case for investigation is<br>made out or not. If CBI is prevented from holding a<br>preliminary enquiry, at the very threshold, a fetter is put<br>to enable CBI to gather relevant material. As a matter of<br>fact, CBI is not able to collect the material even to move<br>the Government for the purpose of obtaining previous<br>approval from the Central Government.
xxx xxx xxx
68.Can it be said that the classification is based on
intelligible differentia when one set of bureaucrats of Joint
Secretary level and above who are working with the
Central Government are offered protection under Section
6­A while the same level of officers who are working in the
States do not get protection though both classes of these
officers are accused of an offence under the PC Act, 1988
and inquiry/investigation into such allegations is to be
carried out. Our answer is in the negative. The provision
in Section 6­A, thus, impedes tracking down the
corrupt senior bureaucrats as without previous
approval of the Central Government, CBI cannot even
30
hold preliminary inquiry much less an investigation
into the allegations. The protection in Section 6­A has
propensity of shielding the corrupt. The object of
Section 6­A, that senior public servants of the level of
Joint Secretary and above who take policy decision must
not be put to any harassment, sidetracks the fundamental
objective of the PC Act, 1988 to deal with corruption and
act against senior public servants. CBI is not able to
proceed even to collect the material to unearth prima facie
substance into the merits of allegations. Thus, the object
of Section 6­A itself is discriminatory.That being the
position, the discrimination cannot be justified on the
ground that there is a reasonable classification
because it has rational relation to the object sought to
be achieved.”
(emphasis supplied) The thrust of this exposition is that every person committing the same   offence   is   to   be   dealt   with   in   the   same   manner   in accordance   with   law,   which   is   equal   in   its   application   to everyone.  The discrimination or differentiation must be founded on pertinent and real differences as distinguished from irrelevant and   artificial   ones.     In   paragraph   70,   the   Court   went   on   to observe   that   every   public   servant   against   whom   there   is   a reasonable   suspicion   of   commission   of   a   crime   or   there   are allegations  of  an offence  under  the  PC  Act has  to be treated equally and similarly under law. 24. Suffice it to observe that the proviso contained in the stated notification dated 19.2.1996 cannot be the basis to disempower the special police force/DSPE (CBI) from registering the offence committed   at   Delhi   to   defraud   the   Government   of   India 31 undertaking (BRBCL) and siphoning of its funds and having its registered office at Delhi.  Allegedly, the stated offence has been committed at Delhi.  If so, the Delhi Courts will have jurisdiction to   take  cognizance   thereof.     The   State   police   (State   of   Bihar) cannot   investigate   the   specified   offences   committed   and accomplished at Delhi, being outside the territory of the State of Bihar.   It must follow that the consent of the State of Bihar to investigate such offence is not required in law and for which reason, the special police force would be competent to carry on the   investigation   thereof   even   if   one   of   the   accused   allegedly involved   in   the   commission   of   stated   offence   happens   to   be resident of the State of Bihar or employed in connection with the affairs   of   the   Government   of   Bihar   and   allegedly   committed associated offences in that capacity.  In other words, consent of the State under Section 6 cannot come in the way or constrict the jurisdiction of the special police force constituted under Section 2 to investigate specified offences under Section 3 of the 1946 Act committed within the Union Territories.  Indeed, when the Court of competent jurisdiction proceeds to take cognizance of offence and   particularly   against   the   appellant,   it   may   consider   the question of necessity of a prior sanction of the State of Bihar  qua 32 its official(s) as may be required by law.   That question can be considered on its own merits in accordance with law. 25. For the view that we have taken, it may not be necessary for us to analyse the decisions relied upon by the parties, which in our opinion, do not pertain to the question under consideration regarding the effect of the proviso contained in the notification dated 19.2.1996. 26. In view of the above, this appeal must fail and the same is accordingly dismissed.  Pending interlocutory applications, if any, shall also stand disposed of. ..................................J.   (A.M. Khanwilkar) ..................................J.        (Dinesh Maheshwari) New Delhi; April 24, 2020.