"Statistical Data Is Life Blood Of Economic Policy Making Of Nation" - Karnataka HC While Refusing To Quash Criminal Case Against Company For Not Furnishing Data

A Karnataka High Court of Justice M Nagaprasanna has dismissed a petition filed by a company, through which the company sought to quash proceedings initiated against it for the non-furnishing of statistical data to the government.

In that context, it was said that "Non-furnishing of data by a company, though may seem to be a trivial offence but in effect, snowballs into an indelible impact on the planning of the economic policies of a nation, as the development goals of a nation becomes stacks. Therefore, statistical data inter alia, becomes the life blood of economic policy making of a nation."

Counsel Gangadharaiah AN appeared for the petitioner, while DSGI Shanthi Bhushan appeared for the respondent.

In this case, a Textile manufacturing company challenged proceedings initiated in 2016 before a Magistrate Court in Bengaluru for offenses under Sections 15(2), 19, 22, and 23 of the Collection of Statistics Act. The proceedings originated in 2012 when the company failed to submit annual statistical data for the year 2010-11. The company admitted guilt and paid a fine in 2013. However, as it still didn't provide the required data, further proceedings were initiated. The company argued that this amounted to double jeopardy since it had already been charged for the same offence. The Government of India opposed the plea, stating that the obligation under Section 15(2) of the Act starts after pleading guilty.

The Court observed that the Act required that data is furnished, and that the collection of statistical data is absolutely imperative for planning the economy and economic policies of the Country. In that context, the Court noted that, "In the teeth of admitted fact that the petitioner has not furnished statistical data even till the date of registration of the complaint – the second one, it is undoubtedly guilty albeit prima facie for the action of non-furnishing of such statistical data."

The Court also took the considered view that it was a necessity that statistical data be given by every company, as a responsible business house, who has their company on the soil of the nation. This was based on the view that, "The data gap like the one that is the issue in the case at hand will have a cascading effect on the nodal Ministry to facilitate its implementation even for SAARC Social Charter in India. It is in public domain that Indian statistical system is one of the best systems in the world. The country participates in all the international and regional organizations of the United National Economic and Social Commission for Asia and the Pacific on statistical compliances and international practices."

In light of the same, the Court held that it is imperative for every stakeholder under the Act, to furnish its statistics annually, diligently as is required under the Act or to face the wrath of Section 15 of the Act.

Holding that the petition lacked merit, the Court dismissed it.

Cause Title: M/s Masturlal Pvt Ltd. v. Government of India

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