Bombay HC at Goa quashes cognizance in Customs corruption case taken without prior sanction under the PC Act
The question: Is an order taking cognizance of offences under the Prevention of Corruption Act valid if the sanction under Section 19 is obtained only afterwards?
The High Court of Bombay at Goa has quashed the order taking cognizance of corruption and conspiracy charges against an Assistant Commissioner of Customs and three others, holding that the Special Judge had no jurisdiction to take cognizance without a prior sanction. Justice Valmiki Menezes also held that, on the material in the CBI's chargesheet, no offence under Sections 7 and 13 of the Prevention of Corruption Act, 1988 was prima facie made out, so there was no point in sending the matter back to the trial court. The accused stand discharged. The CBI alleged that between 2017 and 2019 Accused No. 1, then Assistant Commissioner of Customs, Goa, conspired with a private person, Accused No. 2, to defraud the Customs Department. He allegedly issued 114 work orders for furniture, electrical and renovation work at the Customs House, 80 of them without following the tender procedure, to four fictitious firms floated by Accused No. 2. Accused Nos. 3 and 4, employees of Accused No. 2, allegedly created forged documents to open bank accounts and obtain the work orders. The Special Judge, South Goa at Margao, took cognizance on 29 April 2022 without any sanction under Section 19 of the Act. Sanction was granted on 5 May 2022, limited to the Act, and produced on 1 June 2022. By an order of 10 November 2023, the Special Judge discharged Accused Nos. 1, 2 and 4 of the IPC offences but directed a charge under the Act, and discharged Accused No. 3 completely. Three accused and the State challenged this.