The Supreme Court upheld the dismissal of a money laundering case against former IAS officer Bibhu Prasad Acharya, stating that the Enforcement Directorate failed to obtain the necessary sanction under Section 197 of the CrPC for prosecuting him. This ruling affirms the requirement that public servants must have government sanction before facing prosecution, reinforcing protections against unjust legal action.
New Delhi: The Supreme Court today upheld the quashing of a money laundering case against former Indian Administrative Service (IAS) officer Bibhu Prasad Acharya, ruling that the Enforcement Directorate (ED) failed to secure the necessary sanction to prosecute him under Section 197 of the Code of Criminal Procedure (CrPC). This provision is critical for protecting public servants from prosecution if the alleged crime is committed during the discharge of their official duties.
Read Also: CBI Ordered to Update Case Diary in AAP’s Satyendar Jain Disproportionate Assets Case
The Division Bench of Justices Abhay S Oka and Augustine George Masih ruled that Section 197 of the CrPC applies to money laundering cases under the Prevention of Money Laundering Act (PMLA). The court made it clear that before a public servant can be prosecuted under PMLA, the concerned government must grant sanction. “We have held that the provision of Section 197 CrPC providing sanction will apply to cases under PMLA,” the bench stated in its judgment.
The money laundering case against Acharya stemmed from his statements made in 2012 and 2015 during the ED’s investigation into a disproportionate assets case involving former Andhra Pradesh Chief Minister YS Jagan Mohan Reddy. The ED accused Acharya of using his official position as Vice Chairman of the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) from 2005 to 2009 to show undue favours to several companies, including Aurobindo Pharma, the Hetero Group, and Trident Life.
Read Also: CJI-designate Sanjiv Khanna Honors CJI Chandrachud’s Contributions to Legal Reforms
The core allegation was that Acharya facilitated the allotment of land at significantly reduced prices, costing APIIC Rs 21.5 crores in losses. However, the ED was unable to secure the required sanction to prosecute Acharya under Section 197 of CrPC, leading the Telangana High Court to quash the case in 2019. The High Court held that without the mandatory sanction, the case against Acharya could not proceed. “Sanction to prosecute the respective petitioners (including Acharya) in the respective cases as public servants is mandatory and pre-requisite to take cognizance,” the High Court said.
The ED challenged this decision before the Supreme Court, but the apex court today dismissed the agency’s appeal, reaffirming the importance of obtaining the necessary sanction before prosecuting public servants. This ruling reinforces the critical legal principle that the protection provided to public servants under Section 197 is an essential safeguard against arbitrary prosecution.
FOLLOW US ON YOUTUBE FOR MORE LEGAL UPDATES