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It is the admitted case of the parties that the fertiliser supplied by the firm could not be sold to the farmers and huge stock kept on lying in the godowns of BISCO for long time. The BISCO was manufacturing "Harabahar" brand of fertiliser at its two factories. It wa ulti-

mately decided by the BISCO that the fertiliser which was supplied by the firm and which was lying in the godowns unsold be used as raw material for the manufacture of "Harabahar" fertiliser. The fertiliser was thereafter shifted from various godowns of BISCO to its two factories for conversion into "Harabahar".

In course of checking of the stock of fertilisers lying in the various godowns of BISCOMAUN and position of raw materials in the factories, `it was detected that huge quantity of unsold `Suraj Brand N.P.K.' mixture fertiliser was lying in the depots of BISCOMAUN which was being sent to the fertiliser factories of BISCOMAUN to be used as raw-material in the manufacture of `HARABAHAR ' (mixture fertiliser). On perusal of the relevant files, it transpired that `Suraj Brand N.P.K.' was purchased from a private firm namely M/s Rajasthan Multi Fertiliser Pvt. Ltd., Udaipur (Rajasthan). It is also evident from the relevant records that the entire transaction for the purchase of the `Suraj Brand N.P.K.' from the said firm and its utilisation in the manufacture of HARABAHAR was fraudulent and a conspiracy for wrongful gain to M/s Rajasthan Multi Fertiliser Pvt. Ltd. and erstwhile Chairman of BISCOMAUN, Sri Tapeshwar Singh and some officers responsible for the purchase of said sub-standard fertiliser and wrongful loss to the institution as well as the farmers of the State of Bihar". The facts in brief are as follows:

However, on the said Executive Committee decision, the management of Biscomaun along with old stock fertiliser also started transferring the said Suraj Brand fertiliser to the two factories so that it could be converted into Harabahar and consumed. It is to be noted that out of 2900 mts. 2500 mts. had remained unsold by June, 1987. Stocks proved to be spurious and sub-standard were transferred to the Biscomaun factories at Tilrath and Jasidih for being converted into Harabahar. The said Suraj Brand material from Benipad, Bochaha, Gangaiya(Muzaffarpur) from where samples had been taken and fertiliser proved to be spurious were transferred to the fertiliser factories. It is clear that the entire reprocessing gimmick was a conspiracy to cause unlawful gain to the said Rajasthan Multi-Fertiliser Pvt. Ltd. and unlawful personal gain to the persons involved by consuming spurious fertiliser supplied by them thereby also causing wrongful loss to Biscomanun and the farmers of the State. Not only that the aforesaid serious offences were committed, but the provisions of Fertiliser Control Order, 1957 were also violated by supplying spurious and sub-standard fertilisers.

Annexure 3 is a government notification dated october 10, 1986 wherein 5 types of fertilizers have been specified which could be purchased or manufactured in the State of Bihar. Annexure 4 is a certificate of registration dated March 31, 1986 in favour of the firm registering it as wholesale dealer in the State of Bihar under the Fertilizers (Control) Order, 1957. Annexure 5 dated July 29, 1986 is the renewal of the said certificate. Annexure 6 dated November 16, 1985 is the certificate given to the firm by the Assistant Director (Agriculture) quality control, Udaipur, Rajasthan to the effect that samples of fertilisers taken from its factory were standard. Annexure 7 dated August, 1986 is the letter from Agriculture Department, Bihar to the Agriculture Department, Rajasthan showing that the firm's registration was renewed upto March 31, 1989 and it was granted permission to import the specified grades of fertiliser into the State of Bihar. Annexure 11 dated October 23, 1986 is the letter from G.D.Mishra to Director, Agriculture, Bihar asking his opinion regarding suitability of the fertiliser to be purchased from the firm at Rs.2,550 per M.T. Annexure 15 dated December 19, 1986 is the letter from G.D. Mishra to the firm asking the firm to supply 408 M.T. of fertiliser. Annexure 16 dated May 5, 1987 contains the proceedings of the marketing committee of BISCO held on April 16, 1987 wherein memorandum of sale and purchase of fertiliser for the year 1986-87 was approved. Annexure 17 Dated February 18, 1985 is the letter from R.K. Singh as District Magistrate, Patna to Agriculture production Commissioner, Patna which discloses that R.K. Singh had got samples of Essential Commodities tested from Rajendra Agriculture University. Annexure 18 dated March 23, 1987 is the memorandum prepared by P.P. Sharma for the Board of Directors of BISCO suggesting that the fertiliser purchased from the firm be sent to BISCO factories asraw-material. This was suggested because the fertiliser was not being sold inspite of reduction of price and huge stock and money was blocked. Annexure 19 is the record of the proceedings of the meeting of Board of Directors of BISCO dated March 23, 1987 approving Managing Director's suggestion that fertiliser be sent to BISCO factories as raw material to be converted as `Sada Bahar'. Annexure 20 dated May 21, 1987 is the memorandum prepared by P.P. Sharma for Executive Committee of BISCO regarding manufacture of `Hara Bahar' fertiliser by the BISCO factories. Annexure 20/1 is copy of the proceedings of the Executive Committee meeting held on May 21, 1987 regarding manufacture of `Hara Bahar'. Annexure 22 is the document showing that P.P. Sharma handed over charge of the office of the Managing Director to Sanjay Srivastava on June 15, 1987. Annexure 22/1 is the document showing that P.P. Sharma assumed charge as Managing Director of BISCO on May 26, 1986. Annexure 24 dated October 13, 1987 is the letter by Mishra to the firm asking it to take back the sub- standard fertiliser from 8 depots mentioned therein. Annexure 25 is the letter dated May 15, 1987 from project Manager of BISCO factory to Mishra, wherein the proposal for consumption of fertiliser to manufacture `hara bahar' was detailed. It was also stated that the process of manufacture would be viable. Annexure 26 is a letter from the firm to the BISCO showing that the firm would help converting fertiliser into `hara bahar' and would meet the transport, handing and processing cost. Annexure 39 is the case diary prepared by the investigating officer.