SC Upholds Acquittal in TANSI Foundry Case: No Evidence of Conspiracy or Misconduct, Dismisses Appeals.

The SC upheld the HC's judgment, acquitting all accused of charges related to the TANSI Foundry property sale. The Court found no evidence of conspiracy, criminal misconduct under the Prevention of Corruption Act, or violations of IPC Sections 169 and 409. The appeals and special leave petition were dismissed, emphasizing the necessity for high standards of probity in public life.

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Issues Involved:
1. Whether the sale of TANSI Foundry property to Jaya Publications was conducted at a fair market value.
2. Whether the accused conspired to sell the property at a lower price to confer pecuniary advantage.
3. Whether the actions of the accused constituted criminal misconduct u/s 13(1)(c) and 13(1)(d) of the Prevention of Corruption Act.
4. Whether the accused violated Section 169 IPC by purchasing government property.
5. Whether the accused committed criminal breach of trust u/s 409 IPC.

Summary of Judgment:

1. Fair Market Value of TANSI Foundry Property:
The High Court found no evidence indicating that the guideline value had been fixed for the property in question. The prosecution failed to establish that the market value of the land sold was Rs. 7.32 lakhs or more. The properties were sold through a tender process after due publicity, and the highest bid was accepted. The High Court concluded that the price of Rs. 3 lakhs per ground was reasonable based on the evidence, and there was no wrongful loss or gain.

2. Conspiracy to Sell Property at a Lower Price:
The High Court held that the charge of conspiracy could not be established as the properties were not purchased at a price lower than the guideline or market value. There was no independent material to conclude that there was any conspiracy to commit the offenses charged.

3. Criminal Misconduct u/s 13(1)(c) and 13(1)(d) of the Prevention of Corruption Act:
The High Court found that the properties were purchased through an open sales process held by TANSI, and the right to sell the properties was available with the Corporation. It was not established that the accused obtained any valuable thing or pecuniary advantage by abusing their position as public servants. The charge under Section 13(1)(d) was not established.

4. Violation of Section 169 IPC:
The High Court held that the Code of Conduct for Ministers, not having statutory force and not enforceable in a court of law, cannot be construed to impose a legal prohibition against the purchase of government property. The offense under Section 169 IPC was not established as there was no specific provision prohibiting the act to make it illegal.

5. Criminal Breach of Trust u/s 409 IPC:
The High Court found that the properties belonged to TANSI, a government company, and there was no entrustment of the properties creating a trust. The relationship between the accused and TANSI was not one of trustee and beneficiary. The ingredients of Section 409 IPC were not attracted, and the charge was not established.

Conclusion:
The Supreme Court upheld the High Court's judgment, acquitting all the accused of the charges. The appeals were dismissed, and the special leave petition was also dismissed. The Court emphasized the importance of high standards of probity in public life and condemned actions that give rise to suspicion of rules and procedures being bent for personal benefit.

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