Magistrate May Permit Officer Below Rank Of Inspector To Assist IO In Investigation Under Prevention Of Corruption Act: Delhi High Court

The Delhi High Court has held that a special judge under the Prevention of Corruption Act is empowered to permit an officer below the rank of Inspector to assist the Investigating Officer in investigation.

Justice Manoj Kumar Ohri added that the steps taken by such an officer have to be performed under direct supervision of the Investigation Officer, who remains in control of the investigation. The Court also clarified that the IO shall be responsible for all the steps that are taken by the subordinate officer.

The Court was dealing with a petition seeking quashing of order dated February 7, 2020 passed by Special Judge wherein CBI's application seeking permission for Sub-Inspector to assist the main Investigating Officer in conducting investigation, was declined.

The investigation pertained to commission of offences under Section 120-B read with Sections 420, 468, 471 and 477A IPC along with Sections 13(2) and 13(1)(d) of the Prevention of Corruption Act, 1988 against Bhushan Power and Steel Limited and others.

It was alleged that the said company entered into a criminal conspiracy in order to cheat banks/financial institutions/Govt. exchequer, dishonestly and fraudulently diverted huge amount of bank funds.

It was the case of CBI that being a high-ticket fraud requiring investigation all over the country, the application was moved before the Trial Court seeking permission for sub-inspector to assist IO in conducting investigation as the bank documents were voluminous and the investigation had to be conducted speedily. The respondents also did not object to the said application. However, the Trial Court denied such permission.

Analyzing Section 17 (Persons authorised to investigate) of the Prevention of Corruption Act, the Court observed thus:

"The Special Judge is empowered under Section 17 of the PC Act, 1988 to permit an officer below the requisite rank to assist the Investigating Officer in conducting investigation provided the steps taken by him are under direct supervision of the Investigation Officer who remains in control of the investigation and shall be responsible for all the steps that are taken by the subordinate officer."

It relied on the Supreme Court's decision in HN Rishbud and Inder Singh v. State of Delhi, AIR 1955 SC 196, where after considering the Scheme of CrPC, it was observed that it is permissible for an officer in charge of a Police Station to get the investigation conducted from a subordinate officer provided that the responsibility of all such steps remains with the officer in charge of Police Station and that the subordinate officer reports all the steps taken by him to the officer in charge.

In this backdrop, the High Court observed,

"The Trial Court by passing the impugned order not only failed to appreciate the mandate of Section 17 of the PC Act, 1988 but also failed in its duty to follow the import of above referred exposition of law."

Accordingly, the petition was allowed.

Appearance: SPP Anupam S. Sharma along with Advocates Prakarsh Airan and Harpreet Kalsi appeared for CBI.  Advocates Manmeet Singh and Nishtha Chaturvedi appeared for the respondents.

Case Title: CBI v. Bhushan Power and Steel Limited & Ors.

Click Here To Read Order 

(Edited by Akshita Saxena)