TaxTMI 
TaxTMI 
TaxTMI 
2010 (8) TMI 1124
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....s destroyed by further passage of time, it is necessary to examine the main issue involved in this case that is whether the investigation of the criminal cases should or should not be referred for investigation or further investigation or re-investigation, as may be necessary in the facts of each of the cases, to the Central Bureau of Investigation. 4. The allegations as reported in the newspapers and also mentioned in the writ petition are of earning of unprecedented amount of illicit money by some of the Respondents by abuse of their official positions, which amounts to offence under various provisions of the Indian Penal Code as also under the Prevention of Corruption Act. Some other private Respondents are alleged to have assisted in investment of the money, alleged to have been so acquired by illicit means. 5. Some matters have been under investigation by the Enforcement Directorate under the Prevention of Money Laundering Act, 2002 (hereinafter referred as the PML Act). Some matters are being investigated by the State Investigating Agency, namely, the Vigilance Department of the State of Jharkhand. The Income Tax Department is also examining the matter for its own purposes.....
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....in 2002, which came into force in 2005. Subsequently, by Amending Act No. 21 of 2009, the list of offences in the Schedule of the Act was expanded. 9. Prima facie, the idea appears to prevent the illicit proceeds of the specified crimes to be siphoned back through international channels, making it appear that the money coming back from international financial institutions was untainted money, which was being invested in the country. 10. In the present case, the basic allegation is amassing of illicit wealth by various former Ministers, including a former Chief Minister of this State. The money alleged to have been so earned is of unprecedented amounts. However, there is no clear allegation so far about its laundering in the sense mentioned above. But there is an allegation of its investment in property, shares etc., not only in India but also abroad. 11. Therefore, the basic investigation requires to determine whether money has been acquired by abuse of official position amounting to an offence under the Prevention of Corruption Act and under the Indian Penal Code, the persons by whom this has been done, the amount of money which has been so earned and places where it has been i....
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....which money acquired illicitly is alleged to have been invested: (i) Bangkok (Thailand) (ii) Dubai (UAE) (iii) Jakarta (Indonesia) (iv) Sweden (v) Liberia 15. It has also been pointed out to us that several Companies like M/s Blue Techno Projects Company Limited (Sanjay Kumar Choudhary, Managing Director), incorporated under the laws of Royal Kingdom of Thailand in which there is allegedly huge investment by accused persons of ill-gotten money (in breach of Prevention of Corruption Act). There are not less than one dozen such foreign companies where few hundred crores of rupees have been invested by the accused. These Companies are: (i) Suryam Gems & Jewellery, Dubai (UAE) (ii) KGM Gems, Jewellery, Dubai (UAE) (iii) Balaji Holdings (iv) Blue Star Holding, UAE 16. Likewise, it has been argued that there are several Companies in other countries in which there are huge investments by the accused or with the help of accomplices in foreign countries. The lists of countries and companies given above would indicate, prima facie, that the amount involved could not be a mere few crores, but would be nearer a few hundred crores. Since what is alleged to have been uncovere....
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...., are involved, investigation by the State Investigating Agency suffers from the same problem as in the case of Rubabbuddin Sheikh (supra). We, therefore, feel that for a proper investigation inspiring public confidence, it is necessary to hand over the investigation to an independent agency like CBI. 22. We have heard the learned Counsel for all the private Respondents as well as the learned Asstt. Solicitor General representing both the Central Government and the CBI, learned Counsel for the Enforcement Directorate, learned Advocate General for the State of Jharkhand for the best part of the day today. The kind of resistance that is being offered to a probe by CBI, relying upon the existing investigation which, as pointed out above, has not been able to uncover anything below the tip of iceberg, further re-enforces the impression that the probe by the independent agency like CBI is likely to uncover much more. No other explanation has been offered from the side of the Respondents for the resistance to the transfer of investigation to the CBI. 23. Normally the accused or probable accused have no right to be heard while ordering an investigation eg. under Section 156(3) of the Co....
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....s will be transferred forthwith to the CBI. The CBI will take charge of the materials collected so far by the existing investigating agencies for conducting comprehensive, complete and thorough investigation: (i) Vigilance P.S. Case No. 26 of 2008 dated 26.11.2008 and (ii) Vigilance P.S. Case No. 9 of 2009 dated 2.7.2009 27. It has been argued that this Court should not even consider transfer of investigation based merely upon the newspaper reports and the allegedly vague allegations of the writ petition. 28. While we prima facie agree that mere media reports may not be sufficient for ordering investigation or transfer of investigation, but in the present case, we find that the media reports stand corroborated, at least in part, by the investigation done so far which has been referred above. Moreover as stated above, the investigation done so far does not appear to have uncovered the kind of wealth which would have been necessary for making so much foreign investment. What has been disclosed in the investigation done so far persuades us to get a more comprehensive and thorough investigation done into the matter by the independent agency like CBI. 29. An attempt has been made....