Allahabad High Court Upholds FIR Against Cooperative Bank Officer Under Corruption Charges

Court affirms comprehensive definition of 'Public Servant' under the Prevention of Corruption Act, 1988, includes cooperative bank employees.

In a significant judgment, the Allahabad High Court dismissed a writ petition filed by Subhash Chandra, a Deputy General Manager at the Uttar Pradesh Sahkari Gram Vikas Bank Ltd, challenging the First Information Report (FIR) lodged against him under the Prevention of Corruption Act, 1988. The FIR alleged disproportionate assets amounting to Rs. 3,77,85,372.64, beyond his legal income.

The Division Bench, comprising Justices Abdul Moin and Babita Rani, held that employees of cooperative banks, controlled or aided by the government, fall under the expansive definition of "Public Servant" as per Section 2(c) of the Prevention of Corruption Act, 1988. This interpretation was reinforced by precedents from the Supreme Court, emphasizing the legislative intent to combat corruption by broadening the scope of what constitutes a public servant.

The petitioner argued that having been exonerated in prior departmental proceedings, no further criminal proceedings could be initiated for the same charges. However, the court found this contention baseless, noting that the departmental inquiry had not addressed the core charge of disproportionate assets. The court further dismissed claims of malice, stating that the FIR's lodging was not intended to thwart the petitioner's promotion.

The court's decision underscores the judiciary's commitment to a purposive approach in interpreting anti-corruption laws, ensuring that individuals performing public duties in which the state or public has an interest are held accountable under the law.

Bottom Line:

Prevention of Corruption Act, 1988 - Definition of "Public Servant" under Section 2(c) of the Act - Held, employees of cooperative banks controlled and aided by the government are covered under the comprehensive definition of "Public Servant."

Statutory provision(s): Prevention of Corruption Act, 1988 - Sections 2(c), 13(1)(b), 13(2)

Subhash Chandra v. State of U.P., (Allahabad)(Lucknow)(DB) : Law Finder Doc Id # 2812451