On December 16, the Supreme Court overturned a Karnataka High Court ruling that quashed a 2013 CBI criminal case against M/S MSPL Limited for illegal iron ore exports. The apex court directed the High Court to reevaluate the case, excluding the export quantity aspect, with a hearing scheduled for February 3, 2025, without commenting on the merits.
New Delhi: Today, on Dec 16th, the Supreme Court provided relief to the Central Bureau of Investigation (CBI) by setting aside a Karnataka High Court judgment that had quashed a 2013 criminal case involving alleged illegal export of iron ore. A bench comprising Chief Justice Sanjiv Khanna and Justice Sanjay Kumar directed the Dharwad bench of the Karnataka High Court to revisit the case, with some exceptions.
“We have set aside the (HC) judgement. The parties are directed to appear before the high court on February 3, 2025,”
the Supreme Court stated, clarifying that it had “not expressed any opinion on the merits of the case.”
The case involves M/S MSPL Limited and others, who were accused of exporting 39,480 metric tonnes of iron ore without valid permits. However, the Karnataka High Court had quashed the CBI’s case in its December 12 judgment, citing lack of jurisdiction, as the alleged quantity was below the 50,000 metric tonne threshold set by a 2012 Supreme Court order.
The high court had observed,
“What would unmistakably emerge is… in cases where exporters who have exported more than 50,000 metric tonnes without valid permits, the CBI would get jurisdiction to register crimes, and… in cases where export is less than 50,000 metric tonnes, the Government of Karnataka has to take further action in accordance with law.”
The apex court ordered the High Court to reconsider all aspects of the case, except for the quantum of alleged exports. The parties, including M/S MSPL Limited, are required to appear before the Karnataka High Court on February 3, 2025, for fresh adjudication.
The CBI had filed its FIR on October 24, 2013, under sections of the IPC, including Section 120B (criminal conspiracy) and Section 379 (theft), and provisions of the Mines and Minerals (Development and Regulation) Act. The chargesheet, filed in February 2022, was quashed by the High Court, which ruled that “all actions arising from the chargesheet, including the cognisance taken by the trial court, were invalid.”
On the role of directors, the High Court emphasized that “their specific roles must be clearly established in the complaint, investigation, and chargesheet” and that “directors cannot be arraigned as accused without clear evidence of their active involvement in the alleged illegality.”
Case Title: V. Shrinivasan v. The Publishing Private Limited [Diary No. 58560/2024]
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