The Rajasthan High Court has directed the Anti-Corruption Bureau (ACB) to register an FIR and conduct a fair investigation into allegations that senior State Bank of India (SBI) officials demanded a ₹40 lakh bribe from a former bank manager. Justice Ashok Kumar Jain held that the complaint could not be closed through a preliminary enquiry after verification had found substance in the allegations.
The Court also set aside the enquiry findings and the recommendation to prosecute the complainant for allegedly filing a false complaint.
Background
The petitioner, Vivek Sharma, told the Court that while serving as Chief Manager at SBI’s Bhiwadi branch, he had detected a housing loan fraud involving ₹51 lakh. He alleged that certain senior bank officials subsequently initiated proceedings against him and demanded ₹40 lakh to have the charges dropped.
Sharma approached the ACB with his complaint on November 15, 2022. According to the court record, the bureau conducted verification and subsequently planned a trap. However, it did not register an FIR and instead proceeded towards closing the complaint, while recommending action against Sharma under Sections 182 and 211 of the Indian Penal Code.
After examining the enquiry report and other material, the Court noted that the ACB’s verification had found substance in the complaint and that a trap had been planned. It questioned how the matter could then be closed without registering an FIR and conducting a full investigation.
The Court observed,
“The principle of law as discussed hereinabove clearly indicate that after the verification of complaint, the ACB was under an obligation to register an FIR and undertake investigation pursuant to FIR but not in PE.”
It further stated,
“This indicate that the ACB has made efforts to shield the proposed accused, therefore, considering the principle of law, it is necessary that the FIR be registered and a full-fledged investigation be undertaken.”
The Court reiterated that a preliminary enquiry is meant to determine whether the information discloses a cognizable offence, not to replace an investigation once the necessary grounds emerge.
Allowing the petition, the High Court quashed the findings in Preliminary Enquiry No. 10/2023 dated February 24, 2023, along with the recommendation to prosecute Sharma under Sections 182 and 211 IPC. It directed the ACB to register an FIR under Section 175 of the Bharatiya Nagarik Suraksha Sanhita (BNSS) and conduct a full, fair and impartial investigation under the Prevention of Corruption Act.
The Court declined to transfer the investigation to the CBI, leaving the matter with the ACB. It clarified that its observations should not prejudice the proposed accused and that the agency must submit its findings in accordance with law.
