U N PAI Vs. STATE OF GUJARAT

JUDGEMENT

(1.) Rule. Service of Rule is waived by the learned Counsel appearing for the respondents.

(2.) These three applications for bail under Sec. 439 of the Code of Criminal Procedure are filed by three officers of the Indian Oil Corporation (I.O.C.) upon being arrested pursuant to a First Information Report (F.I.R.) registered with the Central Bureau of Investigation (C.B.I.), Gandhinagar and upon rejection of their similar applications by a reasoned order of the learned Special Judge. The offences alleged in the F.I.R., are punishable under Secs. 120-B and 420 of the Indian Penal Code (I.P.C.) and Sec. 13(2) read with Sec. 13(1)(d) of the Prevention of Corruption Act, 1988. Subsequently, the offences under Secs. 467 and 471 of the I.P.C. are added in the case by application dated 24-11-2000 filed by the C.B.I., in the Court of learned Special Judge, Ahmedabad. About five months after the F.I.R., the applicants were arrested on 10-10-2000 and remanded to police custody. After interrogation during the remand period, the applicants were taken into judicial custody on a specific averment that interrogation of the applicants in police custody was no longer required.

(3.) The contours of the allegations in the F.I.R. are such that special Sales Tax concessions are allowed to certain categories of customers to whom High Speed Diesel (H.S.D.) is sold by the major oil companies operating in the area. The concession in payment of sales tax could be availed by the eligible private industries which use H.S.D., as raw material upon fulfilling the prescribed formalities. The eligible private industries using such H.S.D., as raw material, as distinguished from the petrol pumps to whom such concessions are not granted, have to justify their requirement of H.S.D., to the oil companies as well as to the Sales Tax Department to avail of the concessional rate of sales tax. The functioning of such private industries is inspected by the field officers of the oil companies and the sales tax department who give eligibility certificate before these industries can lift H.S.D., from the oil companies. It was learnt that several private firms, in collusion with the oil companies and officials of the sales tax department, circumvented the mandatory legal provisions and lifted H.S.D., even as many of such firms were, in fact, defunct. The officers of the oil companies are alleged to have wrongly certified the requirement of H.S.D., of such firms and the officers of the sales tax department are alleged to have wrongly issued eligibility certificates to such firms enabling them to lift H.S.D., from the oil companies and afterwards divert the same to petrol pumps. It is also alleged that such firms gave false or forged declarations in the prescribed forms. The conditions imposed for the allotment of H.S.D., were not complied, and by diverting the H.S.D., to open market, wrongful gains are alleged to have been made. Thus, huge revenue loss is alleged to have been caused by the acts and omissions of the officials of the oil companies, sales tax department and the private firms, and the acts of criminal conspiracy and abuse of official position punishable under Secs. 120-B and 420 as also Secs. 467 and 471 of the I.P.C. and Sec. 13(2) read with Sec. 13(1)(d) of the Prevention of Corruption Act are alleged.