PRAKASH CHANDRA SWAIN Vs. STATE OF ODISHA

JUDGEMENT

(1.) The Appellant, namely Prakash Chandra Swain faced the trial on the charges under Sec. 13(1)(d) read with Sec. 13(2) of the Prevention of Corruption Act, 1988 (in short, herein after referred to 'P.C. Act') before the learned Special Judge (Vigilance), Berhampur for having misappropriated the government funds wherein, the learned court found him guilty in the offences charged as above, convicted and sentenced the Appellant to undergo rigorous imprisonment for two years for the offence under 13(1)(d) read with Sec. 13(2) of the P.C. Act and to pay a fine of ?5,000/-, in default, to undergo R.I. for three months.

(2.) The prosecution case in brief is that on 25/7/1997, the Vigilance Department, Raygada, lodged a written report before the Superintendent of Police (Vig.), Berhampur Division, Berhampur, alleging that the present Appellant during his tenure had diverted certain funds which had been sanctioned in favour of Sinapali Weavers Co-operative Society (herein referred to as 'W.C.S.') vide letter No. 2159/T&H, dtd. 8/3/1994 of Govt. of Orissa, Textiles and Handloom Department, Bhubaneswar, as per the advice of Handloom Development Commissioner, Govt. of India, for setting up Handloom Development Centre and Quality Dyeing Unit. According to the prosecution, on 21/4/1994, the Appellant received the draft. He, however, deposited the said bank draft in Bhawanipatna Central Co-operative Bank Ltd., Sadar Branch on 23/5/1994 without giving clear instruction to the Bank as to in which account the amount of the draft had to be credited. The Bank Authority, therefore, kept the amount in the Sundry account of the Bank in favour of Asst. Director of Textiles, Bhawanipatna. It is further alleged that as per the instruction of the Government, Mr. Swain was to credit the draft amount in the SBD account of Sinapali W.C.S. Instead of doing so, Mr. Swain obtained a Bank draft of ?4,76,800/- in favour of the National Handloom Development Corporation, Hyderabad through Bhawanipatna Central Cooperative Bank vide Demand draft no. TL/A/II-720926 dtd. 6/6/94. Mr. Swain personally handed over the draft at Bhubaneswar Branch of National Handloom Development Corporation Ltd. on 7/6/1994. He also placed orders for supply of 40 bales of 26S yarns. On 22/7/1994, 40 bales of 26S yarns were received in favour of Nehuru Nagar Weavers Cooperative Society. Mr. Swain distributed the same in favour of different primary weaver societies through Nehuru Nagar W.C.S. under the 'Hank Yarn Subsidy Scheme' with a view to derive subsidy benefit by the above society, although the money had been sanctioned for Sinapali W.C.S. Moreover, out of the sanctioned amount of ?6,00,000/- a sum of ?4,00,000/- was to be utilised as margin money towards the purchase of raw materials and the balance of ?2,00,000/- was for setting up Quality Dyeing Unit in favour of Sinapali W.C.S. but Mr. Swain deliberately did not credit the draft amount in favour of Sinapali W.C.S. The report further alleged that Mr. Swain, A.D.T., Bhawanipatna by violating the orders of the Government and Director of Textiles, Bhubaneswar, Odisha in order to arrange pecuniary benefit for Nehuru Nagar W.C.S. diverted the funds though it was received for Sinapali W.C.S. for setting up Handloom Development Centre and Quality Dyeing Unit. Mr. Swain had shown undue official favour to Nehuru Nagar W.C.S. by abusing his official position being a public servant, whereby Nehuru Nagar W.C.S. got pecuniary benefit and Sinapali Weavers Co-operative society had been deprived off the benefits.

(3.) In the course of investigation, the Superintendent of Police (Vigilance), Berhampur treated the inquiry report as F.I.R., and directed for investigation of the case against Prakash Chandra Swain, Asst, Director of Textiles, Bhawanipatna. He further directed the Inspector (P.W.26) to investigate the case. It was discovered that ?6,00,000/- earmarked for establishing a Quality Dying Unit and Handloom Development Center for Sinapali W.C.S. was redirected by the Appellant, who held the position of Assistant Director of Textiles, Bhawanipatna, to Nehuru Nagar Weavers Co-operative Society under the hank yarn scheme. This unauthorized diversion prevented Sinapali Weavers Co-operative Society from receiving a subsidy of ?14,500/-, which they would have been entitled to, had the funds been utilised for the intended purpose. The Appellant unlawfully diverted the funds without any approval from the appropriate authorities. The I.O. examined witnesses and seized several documents marked as Exts. 1, 2, 3, 7, 10, 11, 12, and 13, along with documents marked as Exts. 1/2, 2/3, 3/3, 7/2, 10/3, 11/2, 12/2, and 13/2, all bearing his signature. Additionally, on 12/6/1998, two minutes books and the cash book of Nehuru Nagar Weavers Co-operative Society, along with documents marked as Exts. 41, 42, and 43/2, with Ext. 42/1 were seized. These documents were presented before the sanctioning authority, leading to the issuance of the sanction order by P.W.11 marked as Ext. 4. Subsequently, upon concluding the investigation, a charge sheet was filed against the Appellant.