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Issues: Whether the High Court could, in exercise of Article 226 jurisdiction, direct investigation by the CBI without the State Government's consent and whether the direction required modification as to the scope and supervision of the investigation.
Analysis: The direction for investigation was made in aid of public interest litigation to secure an independent probe into alleged large-scale defalcation, falsification of records, and misappropriation of public funds. The Court held that the object was not to confer any advantage on a party or to cast a slur on the State police, but to ensure an investigation that would command public confidence. It also noted that the matter involved serious allegations requiring in-depth investigation, and that the parameters of the High Court's power under Article 226 to order CBI investigation without State consent were already pending consideration before a Constitution Bench. To address apprehensions regarding control of the investigation, the Court directed that the CBI investigation would remain under the overall supervision of the Chief Justice of the Patna High Court, with progress reports to be furnished and further directions sought from the Chief Justice as necessary.
Conclusion: The High Court's direction entrusting the investigation to the CBI was upheld, with modification that the CBI would take over the entire investigation, including existing FIRs, arrests and attachments, under the overall supervision of the Chief Justice of the Patna High Court.
Ratio Decidendi: In an appropriate public interest case involving serious allegations of corruption and public misappropriation, the High Court may direct an independent CBI investigation under Article 226 to secure public confidence, and may also provide supervisory safeguards to ensure proper control of the investigation.