26 April 2024 Corruption >> Criminal Law   |   Evidence >> Criminal Law  

Two government officials, A1 and A2, were recently acquitted of corruption charges by a high court. They were accused of conspiring with a supplier, FEDCON, to inflate the price of stationery purchased for a government department.

The case involved allegations that A1 (Deputy CEO) and A2 (Accounts Officer) had collaborated with A4, a representative of FEDCON, to purchase office supplies at exorbitant rates. This resulted in a loss of Rs. 11,30,566 to the government. The prosecution argued that this constituted criminal misconduct under the Prevention of Corruption Act (PCA), 1988.

However, the court found the prosecution's case to be lacking in crucial evidence. The key arguments presented by the defense, which the court ultimately accepted, were:

• Government Orders mandated purchases from FEDCON: There were existing government orders directing departments to purchase stationery from FEDCON. This weakened the prosecution's claim of a fraudulent scheme.
• Authorized Purchase by CEO: The decision to purchase from FEDCON, and the negotiation of prices, were both carried out by the CEO (P.W.1) who had the proper authority. A1 and A2 merely followed his instructions.
• Unreliable Evidence of Inflated Prices: The prosecution relied on price lists from retail sellers to establish that the purchased items were overpriced. The court ruled that this evidence was insufficient as it did not consider the actual purchase prices from the manufacturer or account for variations in quality.

Since the prosecution failed to establish that A1 and A2 were entrusted with the funds or that they influenced the purchase decisions, the court concluded that there was no misappropriation under the PCA. The conviction and sentence imposed by the lower court were therefore set aside.

This case highlights the importance of clear evidence in corruption charges. The prosecution must demonstrate not only a crime but also the specific role of the accused in it.

  Prevention of Corruption Act, 1988    Indian Evidence Act, 1872