M.CHENNAIAH Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) Criminal Appeal No.280 of 2011 is preferred by A1 and Criminal Appeal No.291 of 2011 is preferred by A2. A1, A2 along with A4 were convicted for the offence under Sec. 13(1)(c) r/w 13(2) of Prevention of Corruption Act, 1988 and sentenced to undergo rigorous imprisonment for a period of three years each and they were also sentenced to undergo rigorous imprisonment for a period of six months each under Sec. 120-B IPC vide judgment in C.C.No.1 of 2008 dtd. 11/3/2011 passed by the I Additional Special Judge for SPE and ACB Cases, City Civil Court, Hyderabad. Since both the appeals arise out of the same judgment, both the appeals are heard together and disposed off by way of this Common Judgment.

(2.) Briefly, the case of the prosecution is that A1 worked as Deputy Chief Executive Officer, A2 worked as Accounts Officer and A3 worked as Superintendent at Zilla Parishad, Nalgonda, A4 worked as Branch Manager, FEDCON Branch, Nalgonda, A5 worked as Business Manager, M/s.Nagarjuana District Co-op Marketing Society, Nalgonda, A6 worked as Business Manager, M/s.Neelgiri Super Bazar, Nalgonda and A7 worked as Chief Executive Officer, Zilla Parishad, Nalgonda. All the seven accused colluded for defrauding and misappropriating the government funds by purchasing stationery and other articles at exorbitant rates. The amount of Rs.19,35,477.00 was spent. However, the investigation found that the value of the goods purchased resulted in loss to the Government to the tune of Rs.11,30,566.00. Accordingly, charges were framed against A1 to A7 for the offences under Sec. 13(1)(c) r/w 13(2) of the PC Act against all the accused. Charge was also framed under Sec. 120-B IPC.

(3.) The allegation is that the stationery and other articles were purchased at exorbitant rates from FEDCON without calling for quotations of any other persons. The Government Order Ex.P2 in which GORT No.87, MA dtd. 1/2/1999 directing all the heads of the departments and subordinate offices and public undertakings under the control of Municipal Administration and Urban Development Department to procure stationery items from FEDCON (National Cooperative Consumers Federation) was followed. The prices of the materials to be supplied by FEDCON are at competitive prices with other agencies, material could be purchased. Accordingly, A2 circulated file through A1 for purchasing stationery and registers for the use of Mandals in the Zilla Parishads from the Zilla Parishad funds. P.W.1, who was the Joint Collector and In-charge as Chief Executive Officer, Zilla Parishad, Nalgonda decided to purchase the stationery from FEDCON, after A1 negotiated for the prices and later was reduced by 5% by FEDCON. Accordingly payment was made by PW.1 by order dtd. 25/1/2000 under Ex.P7. The stationery purchased was distributed to various Mandals under acknowledgment.