Madras High Court Orders CBI Probe Into Fake No Objection Certificates Used To Obtain Petroleum Retail Outlet Licences
Holding that the investigation into forged No Objection Certificates used for securing explosives licences was not being conducted in the proper direction, the Madras High Court transferred the probe to the Central Bureau of Investigation.
Chief Justice Manindra Mohan Shrivastava, Justice G.Arul Murugan, Madras High Court
The Madras High Court has ordered the transfer of the investigation to the Central Bureau of Investigation (CBI) in a case concerning large-scale fabrication and use of fake No Objection Certificates (NOCs) for obtaining explosives licences to establish and operate petroleum retail outlets in Tamil Nadu.
The Court was dealing with a writ petition seeking cancellation of explosives licences allegedly issued based on forged and fabricated NOCs and initiation of criminal and civil action against the authorities and oil companies concerned.
A Bench comprising Chief Justice Manindra Mohan Shrivastava and Justice G Arul Murgan, upon considering the relevant material placed on the record, observed: “…we are inclined to hand over the investigation of this case to the Central Bureau of Investigation(CBI), …The Additional Director General of Police, CBCID, shall handover the entire papers relating to the investigation conducted so far to the appropriate authority as may be deputed by the Director, CBI, New Delhi”.
Background
The matter traces its origin to proceedings in a habeas corpus petition where allegations surfaced that fake NOCs, purportedly issued in the name of the Commissioner of Police, Greater Chennai, were being used to secure licences for petroleum and gas outlets. The issue snowballed when it was brought to the Court’s notice that a large number of such forged NOCs were circulating and had been relied upon to obtain explosives licences.
An FIR had been lodged complaining that numerous fake NOCs, bearing forged seals and signatures of competent authorities, were being used to secure licences for CNG, LPG and petroleum outlets. Subsequent status reports revealed that nearly 90 such fake NOCs had been unearthed and multiple criminal cases had been registered, initially by jurisdictional police and later transferred to the CBCID in view of the magnitude of the racket.
The petitioner had made representations seeking cancellation of licences granted based on such forged documents. When no effective action was forthcoming, the present writ petition was filed.
Court’s Observations
The Division Bench comprising the Chief Justice and Justice G. Arul Murugan noted that the material placed before it disclosed the operation of a “huge racket” engaged in the preparation of forged NOCs for use in obtaining explosives licences. The Court observed that agents of the racket were in direct contact with intending dealers, collected substantial sums from them, and handed over fabricated NOCs which were then used to secure licences.
While action had been taken against those involved in preparing fake NOCs, the Court expressed serious concern that proper investigation had not been conducted into the role of the beneficiaries who had used those forged certificates to obtain licences and operate petrol pump outlets.
The Bench recorded that in many cases, the beneficiaries had not applied through official channels but had directly obtained NOCs from racketeers, raising grave doubts about their complicity. It was observed that the material on record indicated direct contact between beneficiaries and the racket operators, including payment of large amounts for obtaining the forged certificates.
The Court found that despite repeated opportunities and directions, the investigating agency had not conducted a fair and comprehensive probe into the role of beneficiaries. It held that the investigation was not proceeding in the proper direction and that the role of persons who benefited from the forged NOCs had not been adequately examined.
Relying on the Constitution Bench decision in State of West Bengal v. Committee for Protection of Democratic Rights, the Court reiterated that constitutional courts have the power to direct an investigation by another agency in exceptional situations to ensure a fair and credible investigation.
The Bench observed that although such power must be exercised sparingly, the facts of the case warranted the transfer of the investigation, as the material on record required a deeper and fairer investigation, particularly into the role of the beneficiaries and possible conspiracy.
Conclusion
In light of the above findings, the High Court directed that the investigation be transferred to the CBI. The Additional Director General of Police, CBCID, was directed to transfer all investigation papers to the appropriate authority deputed by the Director, CBI, for further investigation.
The Union Government’s counsel was directed to communicate the order to the Director, CBI, to take necessary steps for conducting an investigation and submitting further reports before the competent courts, including in respect of any additional persons found to be involved in conspiracy.
With these directions, the writ petition was disposed of.
Cause Title: V.B.R. Menon v. Chief Controller of Explosives & Ors.