Karnataka High Court
Mr R Eswarraj vs State Of Karnataka on 20 February, 2025
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WP No. 23186 of 2024
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 20TH DAY OF FEBRUARY, 2025
PRESENT
THE HON'BLE MR N. V. ANJARIA, CHIEF JUSTICE
AND
THE HON'BLE MR JUSTICE M.I.ARUN
WRIT PETITION NO. 23186 OF 2024 (GM-RES)
BETWEEN:
1. MR. R. ESWARRAJ
SON OF MR. LATE. C.P. RAJARAM,
AGED ABOUT 70 YEARS,
RETIRED PHOTO JOURNALIST
(THE HINDU) R/AT DIVO HOUSE,
HAPPY VALLEY, KALPANE KULASHEKAR,
MANGALORE - 575 005
...PETITIONER
(BY SRI. N. SHIVAKUMAR, ADVOCATE)
AND:
1. STATE OF KARNATAKA
Digitally signed
by PRABHAKAR REVENUE DEPARTMENT,
SWETHA VIKASA SOUDHA,
KRISHNAN
Location: High BANGALORE - 560 001
Court of
Karnataka REPRESENTED BY
ITS PRINCIPAL SECRETARY
2. PRINCIPAL SECRETARY,
REVENUE DEPARTMENT (DISASTER MANAGEMENT)
1ST GATE, ROOM NO. 627,
6TH FLOOR,
M.S. BUILDING,
BENGALURU - 560 001
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WP No. 23186 of 2024
3. INSPECTOR GENERAL OF REGISTRATION AND
COMMISSIONER OF STAMPS,
O/AT KANDAAYA BHAVAN,
8TH FLOOR, K G ROAD,
BENGALURU - 560 009.
4. DEPUTY INSPECTOR GENERAL OF
REGISTRATION (ADMIN AND LAW)
O/AT KANDAAYA BHAVAN,
8TH FLOOR, K G ROAD,
BENGALURU - 560 009.
5. DEPUTY INSPECTOR GENERAL
OF REGISTRATION
(ENFORCEMENT)
O/AT KANDAAYA BHAVAN,
8TH FLOOR, K G ROAD,
BENGALURU - 560 009.
6. DEPUTY INSPECTOR GENERAL
OF REGISTRATION (CVC)
O/AT KANDAAYA BHAVAN,
8TH FLOOR, KG ROAD,
BENGALURU - 560 009.
7. DEPUTY INSPECTOR GENERAL
OF REGISTRATION (VIGILANCE)
O/AT KANDAAYA BHAVAN,
8TH FLOOR, K G ROAD,
BENGALURU - 560 009.
8. DEPUTY INSPECTOR GENERAL
OF REGISTRATION (INTELLIGENCE)
O/AT KANDAAYA BHAVAN,
8TH FLOOR, K G ROAD,
BENGALURU - 560 009.
9. ADDITIONAL CHIEF SECRETARY
FINANCE DEPARTMENT,
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WP No. 23186 of 2024
STATE OF KARNATAKA,
O/AT ROOM NO.255,
VIDHANA SOUDHA,
AMBEDKAR VEEDHI,
BENGALURU - 560 001.
10. ADDITIONAL CHIEF SECRETARY,
ENERGY DEPARTMENT,
STATE OF KARNATAKA,
O/AT ROOM NO. 236, 2ND FLOOR,
VIKASA SOUDHA,
DR B.R AMBEDKAR ROAD,
BANGALORE - 560 001
11. REGISTRAR OF CO-OPERATIVE SOCIETIES
GOVERNMENT OF KARNATAKA,
O/AT NO 1, ALI ASKER ROAD,
VASANT NAGAR,
BANGALORE - 560 052
12. COMMISSIONER OF COMMERCIAL TAXES,
GOVERNMENT OF KARNATAKA,
O/AT VANIJYA THERIGE KARYALAYA,
GANDHI NAGAR,
KALIDASA ROAD,
BENGALURU - 560 009
13. PRINCIPAL CHIEF COMMISSIONER,
INCOME TAX DEPARTMENT,
KARNATAKA AND GOA,
O/AT CR BUILDING, NO 1,
QUEEN'S ROAD,
BENGALURU - 560 001
14. DIRECTOR GENERAL AND INSPECTOR
GENERAL OF POLICE
O/AT STATE POLICE HEADQUARTERS,
NO.2, NRUPATHUNGA ROAD,
BANGALORE - 560 001
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WP No. 23186 of 2024
15. COMMISSIONER OF POLICE,
MYSORE CITY, O/AT MIRZA ROAD,
NAZARBAD MOHALLA,
LOKARANJAN MAHAL ROAD,
MYSURU,
KARNATAKA - 570 010
16. BESCOM
O/AT CORPORATE OFFICE,
BESCOM, K.R.CIRCLE,
BANGALORE - 560 001.
REPRESENTED BY
ITS MANAGING DIRECTOR
17. MESCOM,
O/AT 1ST FLOOR, MESCOM BHAVAN,
CORPORATE OFFICE, MESCOM,
KAVOOR CROSS ROAD, BEJAI,
MANGALORE - 575 004.
REPRESENTED BY
ITS MANAGING DIRECTOR
18. HESCOM
O/AT CORPORATE OFFICE,
P.B.ROAD, NAVANAGAR,
HUBBALLI - 580 025
REPRESENTED BY
ITS MANAGING DIRECTOR
19. GESCOM,
O/AT CORPORATE OFFICE,
STATION ROAD,
KALABURAGI - 585 102
REPRESENTED BY
ITS MANAGING DIRECTOR
20. CESC MYSORE
O/AT CORPORATE OFFICE, NO 29,
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VIJAYANAGARA 2ND STAGE,
HINKAL, MYSURU - 570 017
REPRESENTED BY
ITS MANAGING DIRECTOR
21. DISTRICT REGISTRAR,
O/AT ROOM NO.8,
NEAR D.C. OFFICE BUILDING,
D C OFFICE,
MYSURU - 570 005
22. CHANDRAMOHAN K.Y. AND CO.
CHARTERED ACCOUNTANTS
O/AT 1ST FLOOR,
CITY COMMERCIAL COMPLEX,
KADRI ROAD,
MANGALURU - 575 003
23. KARNATAKA STATE LICENSED ELECTRICAL
CONTACTORS ASSOCIATION
O/AT NO.33, AVENUE ROAD,
BANGALORE - 560 002
(NEAR MYSORE BANK,
OPPOSITE OLD POST OFFICE)
...RESPONDENTS
(BY SMT. NILOUFER AKBAR, AGA FOR R1 TO 15;
SRI C. CHANNEGOWDA, ADVOCATE FOR R16)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND
227 OF THE CONSTITUTION OF INDIA READ WITH RULE 14(1) OF
THE HIGH COURT OF KARNATAKA (PIL) RULES, 2018 IS FILED
PRAYING TO ISSUE A WRIT OF MANDAMUS TO CONSTITUTE A
SPECIAL TEAM TO INVESTIGATE INTO THE SAID ISSUE AND
MONITOR THE SAME AND ETC.
THIS PETITION, COMING ON FOR PRELIMINARY HEARING,
THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:
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WP No. 23186 of 2024
CORAM: HON'BLE THE CHIEF JUSTICE MR. JUSTICE
N. V. ANJARIA
and
HON'BLE MR JUSTICE M.I.ARUN
ORAL JUDGMENT
(PER: HON'BLE THE CHIEF JUSTICE MR. JUSTICE N. V. ANJARIA) Heard learned advocate Mr. N. Shivakumar for the petitioner, learned Additional Government Advocate Smt. Niloufer Akbar for respondent Nos.1 to 15 and learned advocate Mr. C. Channegowda for respondent No.16.
2. The petitioner projecting himself as a civil rights activists and retired senior photo journalist, has filed the present public interest litigation, in which the grievance raised was about alleged gross violation of law and disregard of legal norms on part of respondent No.23-the Karnataka State Licensed Electrical Contractors Association by allegedly engaging in the acts of counterfeiting stamp papers, illegal franking and unauthorised sale of stamp papers as well as application forms.
3. It was alleged and submitted that by such acts, it creates a menace to the sanctity of documentation and undermines the efficacy of legal documentation process. It is contended that such -7- NC: 2025:KHC:8120-DB WP No. 23186 of 2024 illegal activities threatens not only the veracity of financial transactions but causes enormous loss amounting to crores of rupees to the Government Exchequer. It was contended that the activities of respondent No.23 not only has been contravening the statutory provisions governing the issuance and use of stamp papers but also project the failure on part of respondent Nos.1 to 21-authorities in taking action to curb such illegal activities of respondent No.23.
3.1 The case of the petitioner was that respondent No.23, named the Karnataka State Licensed Electrical Contractors Association which claims to be a welfare body of the Licensed Electrical Contractors in the State of Karnataka was granted electricity licence in the year 2002 for two franking machines under the Karnataka Stamp (Franking Impression of Stamps) Rules, 2000, which was periodically renewed. The franking licence was granted on certain conditions including that it should be used to frank the documents and instruments under the schedule to the Indian Stamp Act, 1899 and schedule to the Karnataka Stamps Act, 1957. 3.2 It is stated that conditions of licence are violated and taking advantage of the loopholes in the system, the respondent- -8-
NC: 2025:KHC:8120-DB WP No. 23186 of 2024 association has franked numerous copies of instruments and has charged highly exorbitant prices from consumers all over the State. It is stated that respondent No.23 is collecting illegal funds in the name of Members Welfare Fund from non-members as well as the members. It is further stated that the said respondent has been indulging into franking the indemnity bonds without adding to the minimum value of Rs.200 as per law and has also been franking lakhs of copies of forms with stamp value of less than Rs.200 or even Rs.100 which has caused heavy loss to the Government Exchequer.
3.3 The allegations were also that respondent No.23-association was engaged in selling counterfeit stamp papers resulting into waste of thousands of crores of rupees to the Government Exchequer. It is stated that for all these activities, the authorities despite the attention drawn, have failed to take steps. Therefore, this petition in the nature of public interest litigation came to be filed.
4. In response to the notice issued by the court, on 19.11.2024 affidavit is filed by the Principal Secretary, Revenue Department -9- NC: 2025:KHC:8120-DB WP No. 23186 of 2024 (DM, Stamps and Registration and SS), Bengaluru. In the affidavit, the following was stated, "(i) Based on a requisition of this department seeking a special audit the Additional Chief Secretary, Finance Department, Vidhana Soudha, Bengaluru- 560 001 has written a letter to Principal Director, Karnataka State Audit And Accounts Department, TTMC Building, Shanthinagar, Bengaluru to carry out a Special Audit of Accounts to verify the discrepancies which have occurred in transactions under Section 10A of Karnataka Stamp Act, 1957, at Sub-Registrar's Offices, Mysuru South and Mysuru East of Mysuru District.
(ii) Pursuant to the letter dated: 17.02.2024 of Additional Chief Secretary to Government, Finance Department special audit was conducted from 14.03.2024 to 25.03.2024 of Sub-Registrar office of Mysore (East) and Mysore (South) for a financial year of 2022-23, by officers of Karnataka State Audit and Accounts Department with respect to the transactions under section 10(A) of Karnataka Stamps Act, 1957.
(iii) The report of the findings of special audit was submitted to Finance Department by the Principal Director, Karnataka State Audit and Accounts Department on dated: 23.04.2024. The same was sent to Inspector General of Registration and Commissioner of Stamps, to take further necessary action."
4.1 The remedial steps and actions taken were highlighted further, "(a) On the basis of the identified loopholes in the system necessary measures to prevent leakages of
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NC: 2025:KHC:8120-DB WP No. 23186 of 2024 revenue including amendment to the relevant Act i.e., The Karnataka Stamp Act and Rules are underway.
(b) Action has already been taken to initiate the development of software to integrate the non- registrable documents transactions to the Kaveri-2 portal and Khajane-2 Portal, thereby doing away with the existing system of payment and manual attestation and signature. The new system will be rolled out from 01/04/2025.
(c) Disciplinary action against the concerned officials is being initiated for their acts of omission and commission resulting in the revenue loss to the State and the same will be taken to its logical conclusion as per rules thereof.
(d) Action as per rules is also being initiated against the organisation/association which has facilitated and its Office Bearers who have been a Party to the revenue loss caused to the State.
(e) Comprehensive action report with details taken on all these fronts shall be reported to this Honourable Court."
4.2 Further affidavit came to be filed on 20.02.2025, in which it is stated that special audit was conducted from 14.03.2024 to 25.03.2024 at the office of the Sub-Registrar of Mysuru (East) for the financial year 2022-23 by the officers of the Karnataka State Audit and Accounts Department in respect of the transactions under Section 10(A) of the Karnataka Stamps Act, 1957.
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NC: 2025:KHC:8120-DB WP No. 23186 of 2024 4.3 What was stated in the earlier affidavit was reiterated to state that the report was submitted to the Finance Department. The additional fact given out in the last affidavit is that the disciplinary action against the officials concerned has been initiated by the competent authority that is the Inspector General of Registration and Commissioner of Stamps, who has issued notice dated 07.02.2025 under Rule 11 of the Karnataka Civil Services (Classification, Control and Appeal) Rules, 1957. 4.4 List of the officials against whom the disciplinary proceedings was undertaken were also furnished which are as under, Sl. Name (Smt/Sri) Designation Previous Sub- Present Sub- No registrar's Office registrar's Office
1. Nagaraj H.J. Senior Mysuru East Mysuru East Subregistrar
2. K.P. Mahesh First Division Mysuru East Mysuru West Assistant
3. L. Rajini Second Division Mysuru East Mysuru East Assistant
4. C. Gururaj Second Division Mysuru East Hunsur Assistant
5. Nagaraj Assistant Mysuru East Mysuru East
6. C.P. Nandini Senior Mysuru South H.D. Kote Subregistrar
7. Venkatesh T Subregistrar Mysuru South Pandavapura
8. Yashasvini J Subregistrar Mysuru South Mysuru South
9. N. Ningaraju First Division Mysuru South Yashvanthapura Assistant
10. Nagendra Second Division Mysuru South Mysuru North Prasad Assistant
11. M. Prema Kumar Second Division Mysuru South Mysuru North Assistant
12. M.Shivakumar Assistant Mysuru South Mysuru North Swamy
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NC: 2025:KHC:8120-DB WP No. 23186 of 2024 4.5 It is further stated that action is also contemplated and being initiated as per the Rules against the association as well as their office bearers who have facilitated the illegal activities and who have been a party to the revenue loss caused to the State. The process of filing the FIR is also underway, it was stated.
5. In view of the above affidavit, it is clear that the authorities are not only alive to the cause sought to be espoused in the present public interest litigation, but they have taken concrete actions to identify, check and remedy the irregularities and loopholes. The authorities have also taken preventive steps and disciplinary action against the officials who are found to be erring in discharging their duties.
6. With an observation that the process of law already initiated by the authorities shall be taken by them to its logical end and that proper and continuous vigil would be maintained to ensure that no irregularities are committed in franking of the stamp papers, that fake or fabricated stamp papers are not created and used by any body and that the process of legal documentation is conducted with due sanctity and regularities, the court is inclined to close this
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NC: 2025:KHC:8120-DB WP No. 23186 of 2024 proceedings in view of the above remedial and preventive steps already taken by the respondent authorities.
7. The present public interest petition is rested here, and is accordingly disposed of.
Sd/-
(N. V. ANJARIA) CHIEF JUSTICE Sd/-
(M.I.ARUN) JUDGE KPS List No.: 1 Sl No.: 9