public exchequer - The Legal Chamber

The Supreme Court held that criminal proceedings involving serious economic offences, especially those under the Prevention of Corruption Act, cannot be quashed merely because a financial settlement or one-time settlement has been reached with the bank. Such offences constitute a crime against society at large, and quashing would be contrary to the interests of justice. Facts Of The Case: An FIR was registered in 2015 following a complaint by the State Bank of Bikaner and Jaipur. The bank alleged that M/s Sarvodaya Highways Ltd. had fraudulently secured credit facilities of ₹60 crores by submitting fabricated work orders and financial statements to project a false financial standing. An internal inquiry later declared the account a Non-Performing Asset, uncovering an alleged fraud of...

The Supreme Court emphasized that judicial review in tender matters ensures fairness and non-arbitrariness under Article 14. It held that misinterpretation of a tender condition, which wrongly excludes the highest bidder and deprives the state of revenue, vitiates the decision-making process. The court underscored the state's duty to maximize public value in natural resource auctions. Facts Of The Case: The case involved a public auction for a five-year sand quarry lease in Odisha. The appellant, M/s Shanti Construction Pvt. Ltd., was the highest bidder but its bid was rejected by the Tender Committee for allegedly failing to comply with Rule 27(4)(iv) of the Odisha Minor Mineral Concession Rules, 2016. The rule required submission of an Income Tax Return for the "previous Financial Year...

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Public vs. Private Wrong: Supreme Court Explains Why Bank Fraud Cases Can’t Be Quashed Just Because Bank Settled

Supreme Court Sets Aside Mining Tender: “Previous Year” Means Year Before Bid