Satyendra Kumar Keshri vs The State Of Bihar & Ors on 10 March, 2017

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Patna High Court - Orders

Satyendra Kumar Keshri vs The State Of Bihar & Ors on 10 March, 2017

2. There are at least 1202 criminal cases pending throughout the State of Bihar in its every District, having common features, all based on allegation of large scale bungling and misappropriation of public property in the matter of procurement of paddy and supply of Customized Milled Rice (CMR).

3. Considering the enormity and magnitude of public money involved, which is said to have been misappropriated 2 and bungled, while hearing this application, I intended to consider possibility of constituting a Special Investigating Team at the State level for more focused and concerted investigation into all the cases.

4. The allegations made in all these First Information Reports are almost identical and show involvement of the personnel of Bihar State Food & Civil Supplies Corporation, State Government Officials/personnel, Rice Mill Owners and other persons connected in the said transactions. This Court had noticed that despite the fact that the allegations in all such cases were identical in nature, the cases are being investigated by the concerned police Officers on case to case basis. Being of the view that misappropriation of this magnitude involving more than one thousand crores (nearly 1500 crores) in one financial year could not have taken place simultaneously, through different transactions, throughout the State of Bihar, without there being a larger conspiracy at some higher level, by order, dated 08,02.2017, I had observed that investigation into all the cases should be monitored under the guidance of the Additional Director General, Criminal Investigation Department, Bihar, Mr. Binay Kumar. In the said order, dated 08.02.2017, the Additional Director General, C.I.D. was asked to report to this Court to suggest a tentative team, 3 which he would like to constitute for carrying out the exercise of monitoring all investigations in all such cases, so that it could be convenient for the Court to pass appropriate order constituting Special Investigation Team for the said limited purpose.

5. In compliance with the said order, dated 15.02.2017, Mr. Binay Kumar, Additional Director General, C.I.D, Bihar has filed a detailed affidavit. From the said affidavit it is evident that out of said 1202 cases at least 9 involve misappropriation of Government property worth more Rs. 8 crores; 18, between 8 crores to five crores; 55, between 5 crores to 3 crores; 261, between 3 crores to 1 crore and 854, one crore and below. It also appears from the said affidavit that at least 9 cases are being investigated by Economic Office Unit of the State of Bihar.

6. It also appears that in compliance with the order of this Court, dated 17.02.2017, the Additional Director General, C.I.D, Bihar, had sought present status of investigations relating to Rice Millers from the Senior Superintendents of Police/ Superintendents of Police of different police Districts of Bihar, on the basis of which a consolidated District wise report has been prepared and has also been brought on record. It has further been mentioned in the affidavit that Additional Director General, C.I.D., Bihar, 4 examined the First Information Reports and supervision notes and other evidences collected in course of investigation so far, with the help of DIG ( C) C.I.D, S.P. (C ) and Dy. S.P. cum In-charge Rice Mill cases and found certain common features pertaining to investigations in all such cases, barring certain exceptions, of the following nature:

"i. The whole process of procurement of paddy is document based and without the availability of requisite documents, it becomes difficult to take decision. During the course of review of cases it has come to light that the Civil Authorities related to procurement and milling processes are not facilitating production of original records/documents related to procurement, transportation, land details and name and addresses of the farmers to whom payments were made by cheques. The Investigating Officers are complaining that despite notice under Section 91 of the Cr.P. C. and request made to the concerned District Magistrates/District Manager, SFC, the said documents are not being made available by the concerned officers.

ii. As per letter No. 9624dateid

07.12.2011 issued by the Food & Consumer Protection Department, Government of Bihar, Patna in each of the purchases center of SFC an Officer authorized to issue cheque was to be appointed along with cheque book for payment to the farmers by a/c payee cheque after purchase of paddy. The SFC had to open a bank account at district and block level and make available adequate fund as per requirement. The SFC was also to select a transport cum handling agency after due process of issuing tender to collect paddy from PACS and purchase centers and to transport it to the rice mill and also to transport CMR from rice mill to warehouse. Further, the State Food Corporation had to provide bags for packing the procured paddy. However, in course of investigation details have not been provided by the SFC in regard to compliance of the above instructions. Further, the agreement regarding 5 warehouses was not provided to the IOs in many cases.

          iii. As per direction of Food & Consumer
Protection         Department,         for       the
management/monitoring/supervision                and

inspection of the work of procurement of the rice/paddy at district level, an officer of the rank of Additional Collector was to be deputed. The SDO was to send daily report of paddy procurement in the sub-division to the DM. Inspection of purchase enters was to be done by the District Magistrates whose duty was to ensure that purchase was made from the genuine farmers. For this an Enforcement Officer was to be deputed by the D.M. However, in most of the cases no information regarding deputation of Additional Collector, inspection by the District Magistrates, deputation of Enforcement Officers or issue of Enforcement Certificates has been made available to the Investigating Agency. Further, no information regarding constitution of a Task Force at district level and minutes of weekly meetings under chairmanship of District Magistrate for review of procurement of paddy in the presence of representative of Food Cooperative Officer, District Manager, SFC and other concerned officer was not make available to the Investigating Agency.

iv. In many cases, it has been found that the Block Agriculture Officers have been made in-charge of the purchase Centers and they have not done their work effectively and in their place an assistant was working. In some cases the dispatch register by which the procured paddy was dispatched to the millers has not been made available. The in0charge of the purchase center has been made accused for defalcation in certain cases.

v. In many cases the PACs had not provided the list of farmers from whom the paddy was procured and payment through a/c payee cheque was made and therefore, no statement of the farmers were taken by the Investigating Agency.

vi. In certain cases it has been found that the mill is not in existence as the paraphernalia of a rice mill was not found present at the P.O. In certain cases it was not clear whether the said mill was in existence or not. 6

vii. In some of the cases the land details related to the rice mill are fake.

viii. In the course of investigation it has been found that in many cases vehicles shown to be used for transportation of procured paddy have fictitious registration numbers.

ix. It has been found that in certain cases agreement was again made with the millers who were black listed earlier."

7. The averments which have been made in the affidavit are disturbing inasmuch as it is evident that the officials/employees of the Corporation and some other functionaries are not extending desired cooperation to the police. It is evident from the said averments that the Civil Authorities, who were involved in procurement and milling processes are causing obstructions in investigations by not providing original records/documents related to procurement, transportation, land details and addresses of the farmers to whom the payments were made by cheques. It also seems that in many of the cases the State Food Corporation has not made available the agreements regarding warehouses where the CMR was to be stored. There are few more issues raised by the Additional Director General, C.I.D, Bihar, which is matter of serious concern, as quoted above.

8. In his affidavit, he has given the names of the police officials to be part of his Special Investigation Team, which is as follows:-

            "I     Sri Ajitabh Kumar, IG. B.M.P.
            II.    Sri Navin Chandra Jha,
                   Commandant,BMP- 10.
            III.   Sri Sanjay Kumar, S.P (D), CID.
            IV.    Sri Shailesh Kumar Sinha, Additional   S.P.,
                   Supaul
            V.     Sri Birendra Kumar, Dy. S.P., CB Team,
                   Gaya.
            VI.    Sri Sone Lal Singh, Dy. S.P., CID."

9. After filing of the affidavit by Mr. Binay Kumar, the Additional Director General, CID, Bihar, the Court had wanted response of the State of Bihar in respect of constitution of the team as suggested by the Additional Director General, CID, Bihar, pursuant to which, a copy of the communication made by the Home Department, Government of Bihar, dated 08.03.2017 has been produced before me, which has been taken on record. By the said communication, the Principal Secretary, Home, has communicated approval of constitution of the team, as suggested by the Additional Director General, C.I.D., Bihar, without raising any objection.

10. In course of submissions being advanced in the present case, my attention was drawn to a Supreme Court's order, dated 28.02. 2017 passed in SLP (Criminal) No. 1779 of 2016 (State of Bihar Vs. Divesh Kumar Chaudhary and anr ) and other analogous cases, which had arisen out of certain cases lodged containing similar allegation of 8 misappropriation and bungling in the matter of handling of paddy and CMR. From the said order, it appears that the State of Bihar had approached the Supreme Court against certain orders passed by this Court allowing concession of bail to the persons accused in such cases. Considering the seriousness of the situation, the Supreme Court in the said order, dated 28.02.2017 has issued few directions including a direction that the investigation in all the cases should be completed within a period of three months. Paragraphs 3 to 5 of the said order may be usefully quoted in view of the nature of order, which I am going to pass:-

"(3) The investigation will be completed within a period of three months.

(4) All the accused will be tried only at five places viz, Patna, Gaya, Chapra, Darbhanga and Purnia by officers of the appropriate rank determined by the High Court within one week from today. The High Court may specify the area of jurisdiction of the said five courts by a public order. If required by the High Court, the State Government may sanction extra strength of officers with requisite infrastructure so that normal work of courts is not disturbed on account of the special arrangement for these cases.

(5) The Officers posted will deal with these cases exclusively. If free from their work, any other work may be assigned to the said officers."

11. Needless to say, that if any State employee or an employee public body or State Corporation refuses to 9 furnish necessary documents and information to the Investigating Agency, which he is bound to furnish under the law, it constitutes misconduct inviting disciplinary action also. The system cannot tolerate this deliberate inaction on the part of such persons.

12. After having considered the said affidavit, it is directed that the team as suggested by the Additional Director General, C.I.D, Bihar, shall form Special Investigation Team for the purpose of monitoring and supervising the cases relating to misappropriation of paddy and Customized Milled Rice (CMR). The following will be the constitution of the team accordingly:-

           i.     Sri Binay Kumar, ADG, CID,. Bihar
           ii.    Sri Ajitabh Kumar, IG, B.M.P.

iii. Sri Navin Chandra Jha, Commandant,B.M.P-10 iv. Sri Sanjay Kumar, S.P. (D), CID v. Sri Shailesh Kumar Sinha, Additional S.P, Supaul.

           vi.     Sri Birendra Kumar, Dy. S.P., CB Team, Gaya
           vii.    Sri Sone Lal Singh, Dy. S.P., CID.

13. In view of the facts and circumstances of the case, it is directed that cases involving amount of more than Rs. 1 Crore and up to Rs. 5 crore are 316 in number which may be investigated by the District Police by officers not below the rank of Inspector of Police/Sub-Inspector of Police to be supervised by the team constituted under the 10 present order. The cases in which the money involved is less than Rs. 01 crore shall be investigated by the District Police under strict compliance of the advisories issued by the ADG, CID, Bihar and shall be closely and periodically monitored by the concerned S.P., Range DIG and Zonal I.G. The concerned S.P. shall supervise the cases under his jurisdiction as per the guidelines/advisories issued by the CID vide memo Nos. 87 dated 14.07.2015, 109 dated 18.08.2015 and 442 dated 13.10.2016. The S.Ps. shall submit fortnightly review/progress report to the Range DIG. The Range DIGs shall submit fortnightly review/progress to Zonal I. G. The Zonal I. Gs. In turn shall submit fortnightly review/progress report to the ADG, CID, Bihar.

14. The Principal Secretary, Home Department, Government of Bihar, is, hereby directed to proceed accordingly and ensure issuance of required notification(s)/orders for transfer/posting of the Officers constituting the Special Investigation Team under the present order of this Court without any delay and in no case beyond two weeks from the order of this Court. It is further directed that none of these personnel shall be shifted to any other place without leave of this Court. Except for the Additional Director General, C.I.D., Bihar, no Member of the Special Investigation Team shall be assigned 11 any duty other than assisting/supervising investigations for which the Special Investigation Team has been constituted, barring for extraordinarily exceptional reasons.

15. It is made clear that it will be open for the Special Investigation Team to take a decision whether further investigation is needed under Section 173(8) of the Code of Criminal Procedure, 1973, if police report has been submitted in any case and the Officer Incharge and the Investigating Officer of the concerned Police Station shall be duty bound to abide by the decision of the Special Investigation Team.

16. The manner in which the said Special Investigation Team shall proceed for bringing investigation of the cases to a logical conclusion shall be decided within two weeks from the passing of the present order by the Additional Director General, CID. All officials of the State of Bihar, employees of the BSFC and all other persons concerned shall be duty bound to extend due cooperation to S.I.T. in the matter of investigation into the cases. If any non-cooperation or reluctance by any officials/employees is reported to this Court, this Court shall take serious note of it. Any non-cooperation or interference with the functioning of the SIT by any person shall be treated to be contempt of Court. The Additional Director General, C.I.D. Bihar, for the 12 purpose of monitoring investigation into the cases shall not receive any instruction from any superior and he will work, apart from being Leader of the SIT, as an Officer of this Court.

17. The Court expects that investigations in all the cases are completed and brought to their logical conclusion within the time frame prescribed by Supreme Court in its order in case of State of Bihar Vs. Divesh Kumar Chaudhary (supra).

18. List this case under the heading "To be Mentioned" on 10.04.2017.




ArunKumar/-                               (Chakradhari Sharan Singh, J)
 U         T

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Patna High Court - Orders