Nation Is Doomed When Law Protects The Corrupt: Karnataka HC While Refusing To Quash Complaint In Mysore Sandal Scam Case

The Karnataka High Court recently refused to quash the FIR and the criminal complaint against the owners of the M/s Karnataka Aromas Company who were alleged to give the bribe and one Albert Nicolas and Gangadhar who were alleged to be caught holding the bribe money, in the infamous 'Cash-for-Contract Scandal', in the office of Prashanth Kumar MV, the then finance adviser and the son of Madal Virupakshappa, the then BJP MLA and chairman of Karnataka Soaps and Detergents Limited.

The Single Judge Bench of Justice M. Nagaprasanna while refusing to grant any relief to the accused noted that "It is high time the menace of corruption is plugged and nipped in the bud by making the bribe-giver susceptible for such prosecution, like the bribe taker."  

Quoting the United Nations Convention against Corruption (UNCAC) to which India is a signatory to, the Bench said, "It is based upon these articles arrived at the convention, certain measures were sought to be taken to arrest corruption. One such step by the Parliament was amendment that comes about on 26-07-2018 to the Prevention of Corruption Act, making the giver and the taker stand on the same pedestal of prosecution"

Senior Advocate Sandesh J.Chouta along with Advocate Bharath Kumar V. appeared for the Karnataka Aromas Company while the other Petitioners, Albert Nicolas and Gangadhar were represented by Advocate Bharath Kumar V. and the State was represented by the Special Public Prosecutor B.B.Patil.

Background: In an alleged cash-for-contract scandal, huge money was recovered by Lokayukta from the MLA's son Prashanth Kumar MV. The MLA Virupakshappa's son was allegedly caught red-handed after a contractor filed a complaint with the Lokayukta. Acting on the complaint, the Lokayukta laid a trap and allegedly caught the accused.

During the conduct of the raid/search, allegedly the present Petitioners, Albert Nicolas and Gangadhar were sitting with two bags in the lobby of the personal office of Sri M.V. Prashanth Kumar, son of Maadal Virupaksha. When the bags were searched `45/- lakhs of cash in each bag was found. Later on, the bribe givers, partners of the Company viz., Karnataka Aromas Company,  were not arrayed as accused by their designation.

It was contended by the Directors of the Karnataka Aromas Company that the Amendment Act of 2018 to the Act introduced a proviso which clearly depicts that if the bribe giver is compelled to give a bribe in circumstances beyond his control, he should report it to the agency within one week and that even before one week could lapse, the crime is registered and the petitioners are made accused.

The High Court after considering the submissions noted "Prima facie, if the story narrated by the learned senior counsel is accepted, it would be accepting a screenplay of a potboiler without letting investigation to be conducted into such ingredients, as the story, within a story twined is interesting to listen, it is a katha sangama but, if on the story the petitioners are left of the hook, the very object behind the amendment and substituting Sections 8, 9 and 10 would be rendered redundant."

The Court also observed that "It is beyond any cavil of doubt that corruption has percolated to every nook and corner of public life in the country and has become an issue in all walks of life posing a grave danger to the concept of constitutional governance. Corruption emerges in various hues and forms and it is therefore, unfathomable."

Further, finding no merits in the Petition, the Bench quoted the philosopher of the USA, Ayn Rand, and said that "When the law no longer protects you from the corrupt, but protects the corrupt from you, you know the nation is doomed."

Accordingly, the Petition was rejected. 

Cause Title: Sri Kailash S. Raj & Ors. v. State Of Karnataka & Ors.

Click here to read/download the Order