1999 1 Crimes(SC) 136 ; 1999 CrLJ 1833 ; 1999 SCC(Cri) 401 ; 1999 2 Supreme 442

1999(1) Crimes 136 (SC)
Supreme Court of India
(From Delhi High Court)
K.T. Thomas & Syed Shah Mohammed Quadri, JJ.
Rajesh Bajaj —Appellant
versus
State NCT of Delhi & Ors. —Respondents
Criminal Appeal No. 295 of 1999
(@ SLP (Crl.) No. 3023 of 1998)
Decided on 12-3-1999
Counsel for the Parties :
For the Appellant : R.K. Jain, Sr. Advocate, Aseem Mehrotra, A.P. Medh, Advocates.
For the Respondents Nos. 1-2 : K.N. Rawal, Additional Solicitor Gener­al, Anil Katiyar, S.W.A. Quadri, Ms. Sushma Suri, Advocates.
For the Respondent No. 5 : Arun Jaitley, A.K. Sinha, Neeraj Choudhary, Advocates.

Important Point
It is not necessary that a complainant should verbatim reproduce in the body of his complaint all the ingredients of the offence he is alleging. If factual foundation for the offence has been laid in the complaint the court should not hasten to quash criminal proceedings during investigation stage merely on the premise that one or two ingredients have not been stated with details.

Act Referred :CRIMINAL PROCEDURE CODE : S.482
INDIAN PENAL CODE : S.415, S.420

(A) The case centers on the interpretation of Section 415 and Section 420 of the Indian Penal Code (IPC) regarding the offence of cheating, and the scope of the High Court's inherent powers under Section 482 of the Code of Criminal Procedure (CrPC) to quash a First Information Report (FIR). The primary legal question is whether a commercial transaction, where a party fails to pay for goods received, automatically precludes a charge of cheating, or whether the presence of deceptive inducement and dishonest intention at the inception of the transaction satisfies the ingredients of Section 415 IPC, thereby justifying a criminal investigation under Section 420 IPC.

(B) The court emphasized that the power to quash criminal proceedings under Section 482 CrPC must be exercised sparingly and only in the rarest of rare cases. It held that a complainant is not required to reproduce the verbatim ingredients of an offence in the FIR, and the court should not conduct a hyper-technical scrutiny of the complaint at the investigation stage. Furthermore, the nature of a transaction (commercial vs. criminal) is secondary to the intention of the party inducing the victim.

Facts of the case:

An FIR was lodged alleging that a party induced the complainant to export readymade garments to Germany by promising payment within fifteen days of the invoice. After receiving the goods and selling them to others, the party paid only a small fraction of the total amount and failed to honor a subsequent settlement agreement. The complainant further alleged that the party had duped other manufacturers. The High Court quashed the FIR, ruling that the matter was a purely commercial transaction and that the complaint failed to explicitly disclose dishonest intention at the time of the transaction.

Findings of Court:

The court found that the High Court adopted a hyper-technical approach by sifting the complaint for specific legal ingredients of Section 415 IPC, which is inappropriate at the investigation stage. It observed that the averments regarding inducement, the subsequent sale of goods without payment, and the pattern of duping others provided a sufficient factual foundation for investigation. The court noted that commercial transactions can indeed be the medium for committing cheating, as illustrated in Section 415 IPC.

Issues:

1. Whether the High Court was justified in quashing the FIR on the ground that the dispute was purely a commercial transaction.

2. Whether the complaint must explicitly state all legal ingredients of cheating to prevent the quashing of an FIR under Section 482 CrPC.

Ratio Decidendi:

The crux of the offence of cheating is the intention of the person who induces the victim, not the nature of the transaction. If a factual foundation for the offence is laid in the complaint, the court should not quash the proceedings merely because specific ingredients are not detailed. Quashing is permitted only when the complaint is entirely bereft of basic facts necessary to make out the offence.

Result:

Appeal allowed; the order of the High Court is set aside, and the FIR is restored for investigation.

Cases Referred:
State of Haryana v. Bhajan Lal, , 1992 Suppl. (1) SCC 335. (Para 2) - Referred

Judgment

Thomas, J.—Leave granted.

2. Appellant lodged an FIR with the police for the offence under Section 420, Indian Penal Code. A Division Bench of the Delhi High Court quashed the FIR on the premise that the complaint did not disclose the offence. The Division Bench reminded themselves that jurisdiction under Article 226 of the Constitution or Section 482 of the Code of Criminal Procedure “should be exercised sparingly and with circumspection” for quashing criminal proceedings. Nevertheless, learned judges found that the case on hand could not pass the test laid down by this Court in State of Haryana v. Bhajan Lal1 . The appel­lant is obviously aggrieved by the aforesaid course of action adopted by the High Court and hence he filed the special leave petition.

3. In the complaint filed by the appellant before the police, on the strength of which the FIR was prepared, the following averments, inter alia, were made. Appellant belongs to a company (M/s. Passion Apparel Private Limited) which manufactures and export Readymade garments. On 15.11.1994 fifth respondent (Gagan Kishore Srivastava) Managing Direc­tor of M/s. Avren Junge Mode Gumbh Haus Der Model approached the complainant for purchase of Readymade garments of various kinds and induced the appellant to believe that 5th respondent would pay the price of the said goods on receiving the invoice. Such payment was promised to be made within fifteen days from the date of invoice of the goods which complainant would despatch to Germany. Appellant believed the aforesaid representation as true and on that belief he despatched goods worth 4,46,597.25 D.M. (Deutsch Marks). In March/April 1995 respondent on receipt of 37 different invoices got the goods released and sold them to others. But the respondent paid only a sum of 1,15,194 D.M. Appellant further alleged in the complaint that respondent induced him to believe that he is a genuine dealer, but actually his intentions were not clear.

4. Appellant also mentioned in the com­plaint that one of the represen­tatives of appel­lant’s company went to Germany in October 1995 realis­ing the amount on the strength of an understanding reached between them that respondent would pay 2,00,000 D.M. in lieu of the remaining part of the price. However, the respondent did not honour even that subsequent under­standing.

5. Appellant further mentioned in the complaint that he came to know later about the modus operandi which respondent adopted regard to certain other manufac­turers who too were duped by the respondent to the tune of rupees ten crores.

6. Learned Judges of the High Court have put forward three premises for quashing the FIR. First is that the complaint did not disclose commission of any offence of cheating punishable under Section 420 of the Indian penal Code. Second is that there is nothing in the complaint to suggest that the petitioner had dishonest or fraudulent intention at the time the respondent exported goods worth 4,46,597.25 D.M. by 37 different invoices. There is also nothing to indicate that the respondent, by deceiving the complainant, induced him to export goods worth 4,48,597.25 D.M. The third is that on the face of the allegations contained in the complaint “it is purely a commercial transaction which is a nut-shell is that the seller did not pay the balance amount of the goods received by him as per his assurance.”

7. After quoting Section 415 of IPC learned judges proceeded to con­sider the main elements of the offence in the following lines :

“A bare reading of the definition of cheating would suggest that there are two elements thereof, namely, deception and dishonest intention to do or omit to do something. In order to bring a case within the first part of Section 415, it is essential, in the first place, that the person, who delivers the property should have been deceived before he makes the delivery; and in the second place that he should have been induced to do so fraudulently or dishonestly. Where property is fraudu­lently or dishonestly obtained, Section 415 would bring the said Act within the ambit of cheating provided the property is to be obtained by deception.”

8. It was thereafter that the High Court scanned the complaint and found out that “there is nothing in the complaint to suggest that the accused had dishonest or fraudulent intention at the time of export of goods.”

9. It is not necessary that a complainant should verbatim reproduce in the body of his complaint all the ingredients of the offence he is alleging. Nor is it necessary that the complainant should state in so many words that the intention of the accused was dis­honest or fraudu­lent. Splitting up of the definition into different components of the offence to make a meticulous scrutiny, whether all the ingredients have been precisely spelled out in the complaint, is not the need at this stage. If factual foundation for the offence has been laid in the complaint the court should not hasten to quash criminal proceedings during investigation stage merely on the premise that one or two ingredients have not been stated with details. For quashing an FIR (a step which is permitted only in extremely rare cases) the information in the complaint must be so bereft of even the basic facts which are absolutely necessary for making out the offence. In State of Haryana v. Bhajan Lal (supra) this Court laid down the premise on which the FIR can be quashed in rare cases. The following observations made in the aforesaid decisions are a sound reminder:

“We also give a note of caution to the effect that the power of quash­ing a criminal proceeding should be exercised very sparingly and with circumspection and that too in the rarest of rare cases; that the court will not be justified in embarking upon an enquiry as to the reliability or genuineness or otherwise of the allegations made in the FIR or the complaint and that the extraordinary or inherent powers do not confer an arbitrary jurisdiction on the court to act according to its whim or caprice.”

10. It may be that the facts narrated in the present complaint would as well reveal a commercial transaction or money transaction. But that is hardly a reason for holding that the offence of cheating would elude from such a transaction. In fact, many a cheatings were commit­ted in the course of commercial and also many transactions. One of the illustrations set out under Section 415 of the Indian Penal Code (illustrations “f”) is worthy of notice now:

“(f) A intentionally deceives Z into a belief that A means to repay any money that Z may lend to him and thereby dishonestly induces Z to lend him money, A not intending to repay it. A cheats.”

11. The crux of the postulate is the intention of the person who induces the victim of his representation and not the nature of the transaction which would become decisive in discerning whether there was commission of offence or not. The complainant has stated in the body of the complaint that he was induced to believe that respondent would honour payment on receipt of invoices, and that the complainant realised later that the intentions of the respondent were not clear. He also mentioned that respondent after receiving the goods have sold them to others and still he did not pay the money. Such averments would prima facie make out a case for investigation by the authori­ties.

12. The High Court seems to have adopted a strictly hyper-technical approach and sieved the complaint through a cullendar of finest gauzes for testing the ingredients under Section 415, IPC. Such an endeavour may be justified during trial, but certainly not during the stage of investigation. At any rate, it is too premature a stage for the High Court to step in and stall the investigation by declaring that it is a commercial transaction simplicitor wherein no semblance of criminal offence is involved.

13. The appellant is, therefore, right in contending that the FIR should not have been quashed in this case and the investigation should have been allowed to proceed.

14. We, therefore, allow this appeal and set aside the impugned order.

Appeal allowed. (C.R.)

Statutes and Notifications

The Prevention of Food Adulteration (Amendment) Rules, 1999

Notification

New Delhi, the 17th February, 1999

1G.S.R. 120(E).—The following draft of certain rules further to amend the Prevention of Food Adulteration Rules, 1955, which the Central Government, after consultation with the Central Committee for Food Standards, proposes to make, in exercise of the powers conferred by sub-section (1) of Section 23 of the Prevention of Food Adulteration Act, 1954 (37 of 1954), is hereby published as required by the said sub-section for the information of all persons likely to be affected thereby; and notice is hereby given that the said draft rules will be taken into consideration on or after the expiry of a period of one hundred twenty days from the date on which the copies of the Gazette of India in which this notification is published, are made available to the public;

Any Objection or suggestion which may be received from any person with respect to the said draft rules before the expiry of the period so specified will be considered by the Central Government;

Objections or suggestions if any, may be addressed to the Secretary, Ministry of Health and Family Welfare, Government of India, Nirman Bhawan, New Delhi.

Draft Rules

1. These rules may be called the Prevention of Food Adulteration (.......Amendment) Rules, 1999.

2. In the Prevention of Food Adulteration Rules, 1955,—

(1) In rule 25, for the words and figure “Rule 32(c)” the words and figure “Rule 32(b)” shall be substituted;

(2) In rule 29, in clause (a) for the word “frozen dessert” the words, “vegetable fat based ice-cream or non-dairy ice-cream” shall be substituted;

(3) In rule 49, in sub-rule (16), for the words, “and partly skimmed sweetened condensed milk” the words, “partly skimmed sweetened condensed milk and dairy whitener” shall be substituted;

(4) In Appendix ‘B’,—

(a) after item A. 11.02.08.01, the following item shall be inserted, namely:—

“A. 11.02.08.02—Vegetable fat based ice-cream or non-dairy ice-cream means a product produced by freezing while stirring, a pasteurized mix which is manufactured from any edible vegetable oil or fat not solely milk fat and any protein not solely milk protein, with or without the addition of cane sugar, dextrose, liquid glucose and dried liquid glucose, maltodextrin, eggs, fruits, fruit juice, preserved fruits, nuts, chocolate, edible flavours and permitted food colours. It shall be free from animal body fat. It may contain permitted stabilizers and emulsifiers not exceeding 0.5 per cent by weight. The product shall contain not less than 10.0 per cent fat, 3.5 per cent protein and 36.0 per cent total solids. Starch may be added to a maximum extent of 5.0 per cent under label declaration.

Note:—Minimum fat content remains the same irrespective of addition of fruits and nuts, as in case of ice-cream.”;

(b) in item A.11.02.11, A.11.02.13 and A.11.02.13.01 the follow­ing shall be added at the end, namely:—

“The total acidity expressed as lactic acid shall not be more than 0.35 per cent.”;

(c) in item A.11.02.14,—

(i) for the words, “Milk powder means the product obtained from cow or buffalo milk or a combination thereof or from standardized milk, by the removal of water” the following shall be substituted, namely:—

“Milk powder means the product prepared by spray drying of standard­ized milk obtained from fresh cow milk or buffalo milk or a mixture thereof.”

(ii) for the portion beginning with the words, “Milk powder shall contain not more than 5.0 percent moisture” and ending with the words “the process of drying shall be mentioned on the label”, the following shall be substituted, namely:—

“Milk powder shall contain not more than 4.0 percent moisture, not less than 26.0 percent milk fat, not less than 96.0 percent total solids and not more than 7.3 percent total ash on dry basis. The total acidity expressed as lactic acid shall not be more than 1.2 percent. The plate count shall not exceed 40,000 per gram. Coliform count and coagulase positive staphylococcus aureus shall be absent in 0.1 gram of the powder. Salmonella and shigella shall be absent in 25 gram of the powder. The insolubility index shall not be more than 2.0 ml.”;

(d) in item A.11.02.15, for the words and figures, “The solubil­ity percent of the product shall be as follows:—

Solubility percent Roller dried Spray dried

(Minimum) 85.0 98.5",

the following shall be substituted, namely:—

“Insolubility Index Roller dried Spray dried

(Maximum) 15.0 ml. 1.5 ml.

The total solids shall not be less than 95.0 percent and total ash (on dry basis) shall not be more than 8.2 percent;”

(e) in item A.11.02.16 for the words and figures, “The minimum solubility of the product shall conform to the following standards :—

Solubility percent Roller dried Spray dried

(Minimum) 85.0 98.5",

the following shall be substituted, namely :—

“Insolubility Index Roller dried Spray dried

(Maximum) 15.0 ml. 1.5 ml.

The total solids shall not be less than 96.0 percent and total ash (on dry basis) shall not be more than 8.2 percent. The acidity expressed as lactic acid shall not be more than 1.5 percent.”;

(f) in items A.11.02.19 and A.11.02.20, after the words, “vege­table oils and fats,” the following shall be inserted, namely:—

“Butryo-Refractometer Reading and Reichert-Meiss Value of extracted fat shall conform to the respective standards of Butryo-Refractometer Reading and Reichert-Meiss Value for Ghee of the state in which the product is manufactured”;

(g) in item A.11.02.21, against Serial No. 26, after the words, “(b) Jodhpur Division” the following shall be inserted, namely:—

“Note :—Jodhpur Division includes Nagaur District”;

(h) after item A.11.02.23, the following item shall be inserted, namely:—

“A.11.02.24—Dairy whitener means the product prepared by spray drying of milk. The milk may be modified by partial removal or substitution of milk solids-not-fat with carbohydrates such as sucrose, dextrose or dextrine. It shall be white or light cream in colour, uniform in composition and free from lumps. It may contain calcium chloride, citric acid and sodium citrate, sodium salt of orthophosphoric acid and polyphosphoric acid (as linear phosphate) not exceeding 0.3 per­cent by weight of the finished product. Such addition need not be declared on the label. Butylated hydroxynisole (BHA) not exceeding 0.01 percent by weight of the finished product may be added. Lecithin may also be added upto 0.5 percent by weight under label declaration. It may contain permitted stabilizers and emulsifiers. It shall also conform to the following standards, namely :—

1. Moisture — Not more than 4.0 percent by weight.

2. Milk Solids (non-fat) — Not less than 57.0 percent by weight.

3. Total ash (on dry basis) — Not more than 5.5 percent by weight.

4. Milk fat (on dry basis) — Not less than 20.0 percent by weight.

5. Total Sugar (expressed as Sucrose) — Not more than 18.0 percent by weight.

6. Insolubility Index — Not more than 2.0 ml.

7. Ash insoluble in dilute hydrochloric — Not more than 0.1 percent by weight acid

It shall be packed in hermitically sealed, cleaned and sound contain­ers or in flexible pack made from film or combination or any of the substrate made of board, paper, polyethylene, polyester metalized film or aluminium foil.

The bacterial count per gram of the product shall not be more than 40,000. Coli form Count, Escherichia, Coli and Staphy—lococcus shall be absent in 0.1 gram whereas Salmonella shall be absent in 25 grams.”

Note.—The Prevention of Food Adulteration Rules, 1955 were published in Part II, Section 3 of the Gazette of India vide SRO 2105 dated 12.9.1955 and subsequently amended as follows by:—

1. SRO 1202 dated 26-5-56

2. SRO 1687 dated 28-7-56

3. SRO 2213 dated 28-9-56 (Extraordinary)

4. SRO 2755 dated 24-11-56

The further amendments were published in Part II, Section 3 Sub-section (i) of Gazette of India as follows by:—

5. GSR 514 dated 28-6-58

6. GSR 1211 dated 20-12-58

7. GSR 425 dated 4-4-60

8. GSR 169 dated 11-2-61

9. GSR 1134 dated 16-9-61

10. GSR 1340 dated 4-11-61

11. GSR 1564 dated 24-11-62

12. GSR 1589 dated 22-10-64

13. GSR 1814 dated 11-12-65

14. GSR 74 dated 8-1-66

15. GSR 382 dated 19-3-66

16. GSR 1256 dated 26-8-67

17. GSR 1533 dated 24-8-68

18. GSR 2163 dated 14-12-68 (Corrigendum)

19. GSR 532 dated 8-3-69

20. GSR 1764 dated 26-7-69 (Corrigendum)

21. GSR 2068 dated 30-8-69

22. GSR 1809 dated 24-10-70

23. GSR 938 dated 12-6-71

24. GSR 992 dated 3-7-71

25. GSR 553 dated 6-5-72

26. GSR 436(E) dated 10-10-72

27. GSR 133 dated 10-2-73

28. GSR 205 dated 23-2-74

29. GSR 850 dated 12-7-75

30. GSR 508(E) dated 27-9-75

31. GSR 63(E) dated 5-2-76

32. GSR 754 dated 29-5-76

33. GSR 755 dated 29-5-76

34. GSR 856 dated 12-6-76

35. GSR 1417 dated 2-10-76

36. GSR 4(E) dated 4-1-77

37. GSR 18(E) dated 15-1-77

38. GSR 651(E) dated 22-10-77

39. GSR 732(E) dated 5-12-77

40. GSR 775(E) dated 27-12-77

41. GSR 36(E) dated 21-1-78

42. GSR 70(E) dated 8-2-78

43. GSR 238(E) dated 20-4-78

44. GSR 393(E) dated 4-8-78

45. GSR 590(E) dated 23-12-78

46. GSR 55(E) dated 31-1-79

47. GSR 142(E) dated 16-3-79 (Corrigendum)

48. GSR 231(E) dated 6-4-79

49. GSR 1043 dated 11-8-79 (Corrigendum)

50. GSR 1210 dated 29-9-79 (Corrigendum)

51. GSR 19(E) dated 28-1-80

52. GSR 243 dated 1-3-80

53. GSR 244 dated 1-3-80

54. GSR 577 dated 24-5-80 (Corrigendum)

55. GSR 996 dated 27-9-80 (Corrigendum)

56. GSR 579(E) dated 13-10-80

57. GSR 652(E) dated 14-11-80

58. GSR 710(E) dated 22-12-80

59. GSR 23(E) dated 16-1-81

60. GSR 205(E) dated 25-3-81 (Corrigendum)

61. GSR 290(E) dated 13-4-81

62. GSR 444 dated 2-5-81 (Corrigendum)

63. GSR 503(E) dated 1-9-81

64. GSR 891 dated 3-10-81 (Corrigendum)

65. GSR 1056 dated 5-12-81 (Corrigendum)

66. GSR 80 dated 23-1-82 (Corrigendum)

67. GSR 44(E) dated 23-1-82 (Corrigendum)

68. GSR 57(E) dated 11-2-82

69. GSR 245(E) dated 11-3-82

70. GSR 307(E) dated 3-4-82 (Corrigendum)

71. GSR 386 dated 17-4-82 (Corrigendum)

72. GSR 422(E) dated 24-5-82

73. GSR 476(E) dated 20-7-82 (Corrigendum)

74. GSR 504(E) dated 20-7-82 (Corrigendum)

75. GSR 753(E) dated 11-12-82 (Corrigendum)

76. GSR 109(E) dated 26-2-83

77. GSR 249(E) dated 8-3-83

78. GSR 268(E) dated 16-3-83

79. GSR 283(E) dated 26-3-83

80. GSR 329(E) dated 14-4-83 (Corrigendum)

81. GSR 539(E) dated 1-7-83 (Corrigendum)

82. GSR 634 dated 9-5-83 (Corrigendum)

83. GSR 743 dated 8-10-83 (Corrigendum)

84. GSR 790(E) dated 10-10-83

85. GSR 803(E) dated 27-10-83

86. GSR 816(E) dated 3-11-83

87. GSR 829(E) dated 7-11-83

88. GSR 848(E) dated 19-11-83

89. GSR 893(E) dated 17-12-83 (Corrigendum)

90. GSR 113 dated 20-1-84 (Corrigendum)

91. GSR 500(E) dated 9-7-84

92. GSR 612(E) dated 18-8-84 (Corrigendum)

93. GSR 744(E) dated 27-10-84

94. GSR 764(E) dated 15-11-84

95. GSR 3(E) dated 1-1-85

96. GSR 11(E) dated 4-1-85

97. GSR 142(E) dated 8-3-85 (Corrigendum)

98. GSR 293(E) dated 23-3-85

99. GSR 368(E) dated 18-4-85 (Corrigendum)

100. GSR 385(E) dated 29-4-85 (Corrigendum)

101. GSR 543(E) dated 2-7-85

102. GSR 550(E) dated 4-7-85

103. GSR 587(E) dated 17-7-85 (Corrigendum)

104. GSR 605(E) dated 24-7-85

105. GSR 745(E) dated 26-8-85

106. GSR 746(E) dated 20-9-85

107. GSR 748(E) dated 23-9-85 (Corrigendum)

108. GSR 892(E) dated 6-12-85

109. GSR 903(E) dated 17-12-85 (Corrigendum)

110. GSR 73(E) dated 29-1-86

111. GSR 507(E) dated 19-3-86

112. GSR 724(E) dated 29-4-86 (Corrigendum)

113. GSR 851(E) dated 13-6-86

114. GSR 852(E) dated 13-6-86

115. GSR 910(E) dated 27-6-86

116. GSR 939(E) dated 9-7-86 (Corrigendum)

117. GSR 1008(E) dated 18-8-86 (Corrigendum)

118. GSR 1149(E) dated 15-10-86 (Corrigendum)

119. GSR 1207(E) dated 18-11-86 (Corrigendum)

120. GSR 1228(E) dated 27-11-86

121. GSR 12(E) dated 5-1-87

122. GSR 28(E) dated 13-1-87 (Corrigendum)

123. GSR 270(E) dated 2-3-87

124. GSR 344(E) dated 31-3-87 (Corrigendum)

125. GSR 422(E) dated 29-4-87

126. GSR 500(E) dated 15-5-87 (Corrigendum)

127. GSR 569(E) dated 12-6-87 (Corrigendum)

128. GSR 840(E) dated 6-10-87

129. GSR 900(E) dated 10-11-87

130. GSR 916(E) dated 17-11-87

131. GSR 917(E) dated 17-11-87

132. GSR 918(E) dated 17-11-87 (Corrigendum)

133. GSR 72(E) dated 3-2-88 (Corrigendum)

134. GSR 73(E) dated 3-2-88 (Corrigendum)

135. GSR 366(E) dated 23-3-88 (Corrigendum)

136. GSR 367(E) dated 23-3-88

137. GSR 437(E) dated 8-4-88

138. GSR 436(E) dated 8-4-88

139. GSR 454(E) dated 15-4-88

140. GSR 618(E) dated 16-5-88

141. GSR 855(E) dated 12-8-88 (Corrigendum)

142. GSR 856(E) dated 12-8-88 (Corrigendum)

143. GSR 924(E) dated 13-9-88 (Corrigendum)

144. GSR 1081(E) dated 17-11-88 (Corrigendum)

145. GSR 1157(E) dated 9-12-88 (Corrigendum)

146. GSR 42(E) dated 20-1-89 (Corrigendum)

147. GSR 128(E) dated 8-3-90

148. GSR 411(E) dated 29-3-90

149. GSR 445(E) dated 16-4-90

150. GSR 457(E) dated 23-4-90

151. GSR 728(E) dated 23-8-90 (Corrigendum)

152. GSR 729(E) dated 23-8-90

153. GSR 732(E) dated 23-8-90

154. GSR 727(E) dated 23-8-90

155. GSR 764(E) dated 7-9-90

156. GSR 867(E) dated 25-10-90

157. GSR 10(E) dated 7-1-91

158. GSR 24(E) dated 15-1-91

159. GSR 66(E) dated 11-2-91 (Corrigendum)

160. GSR 124(E) dated 5-3-91

161. GSR 168(E) dated 21-3-91 (Corrigendum)

162. GSR 255(E) dated 3-5-91 (Corrigendum)

163. GSR 257(E) dated 3-5-91

164. GSR 281(E) dated 29-5-91

165. GSR 494(E) dated 25-7-91

166. GSR 531(E) dated 14-8-91 (Corrigendum)

167. GSR 648(E) dated 25-10-91

168. GSR 731(E) dated 10-12-91

169. GSR 66(E) dated 30-1-92 (Corrigendum)

170. GSR 91(E) dated 7-2-92

171. GSR 101(E) dated 18-2-82

172. GSR 314(E) dated 9-3-92 (Corrigendum)

173. GSR 524(E) dated 15-5-92 (Corrigendum)

174. GSR 525(E) dated 15-5-92 (Corrigendum)

175. GSR 591(E) dated 15-6-92

176. GSR 592(E) dated 15-6-92 (Corrigendum)

177. GSR 596(E) dated 17-6-92

178. GSR 784(E) dated 28-9-92

179. GSR 878(E) dated 17-11-92

180. GSR 903(E) dated 2-12-92 (Corrigendum)

181. GSR 907(E) dated 4-12-92

182. GSR 925(E) dated 15-12-92

183. GSR 429(E) dated 25-5-93 (Corrigendum)

184. GSR 483(E) dated 30-6-93 (Corrigendum)

185. GSR 509(E) dated 14-7-93 (Corrigendum)

186. GSR 695(E) dated 9-11-93

187. GSR 481(E) dated 16-9-93

188. GSR 777(E) dated 16-12-93 (Corrigendum)

189. GSR 105(E) dated 22-2-94

190. GSR 106(E) dated 22-2-94

191. GSR 107(E) dated 22-2-94

192. GSR 300(E) dated 9-3-94

193. GSR 614(E) dated 9-8-94

194. GSR 60(E) dated 7-2-95 (Corrigendum)

195. GSR 677(E) dated 6-9-94

196. GSR 54(E) dated 7-2-95 (Corrigendum)

197. GSR 817(E) dated 14-11-94

198. GSR 847(E) dated 7-12-94

199. GSR 853(E) dated 7-12-94

200. GSR 91(E) dated 24-2-95

201. GSR 512(E) dated 15-6-94 (Corrigendum)

202. GSR 611(E) dated 9-8-94 (Corrigendum)

203. GSR 807(E) dated 14-11-94

204. GSR 808(E) dated 14-11-94 (Corrigendum)

205. GSR 90(E) dated 24-2-95 (Corrigendum)

206. GSR 329(E) dated 4-4-95 (Corrigendum)

207. GSR 518(E) dated 26-6-95 (Corrigendum)

208. GSR 579(E) dated 4-8-95

209. GSR 575(E) dated 4-8-95

210. GSR 578(E) dated 4-8-95

211. GSR 613(E) dated 4-9-95 (Corrigendum)

212. GSR 698(E) dated 26-10-95

213. GSR 711(E) dated 12-11-95 (Corrigendum)

214. GSR 775(E) dated 5-12-95 (Corrigendum)

215. GSR 777(E) dated 5-12-95

216. GSR 791(E) dated 13-12-95

217. GSR 792(E) dated 13-12-95

218. GSR 121(E) dated 11-3-96

219. GSR 124(E) dated 11-3-96 (Corrigendum)

220. GSR 222(E) dated 26-5-96 (Corrigendum)

221. GSR 223(E) dated 26-5-95

222. GSR 232(E) dated 4-6-96

223. GSR 515(E) dated 5-11-96 (Corrigendum)

224. GSR 550(E) dated 4-12-96

225. GSR 551(E) dated 4-12-96

226. GSR 553(E) dated 4-12-96

227. GSR 41(E) dated 29-1-97

228. GSR 147(E) dated 14-3-97

229. GSR 149(E) dated 14-3-97

230. GSR 283(E) dated 29-5-97

231. GSR 284(E) dated 29-5-97

232. GSR 285(E) dated 29-5-97 (Corrigendum)

233. GSR 286(E) dated 29-5-97 (Corrigendum)

234. GSR 288(E) dated 29-5-97 (Corrigendum)

235. GSR 303(E) dated 4-6-97

236. GSR 304(E) dated 4-6-97

237. GSR 382(E) dated 10-7-97

238. GSR 465(E) dated 14-8-97

239. GSR 546(E) dated 17-9-97 (Corrigendum)

240. GSR 547(E) dated 17-9-97 (Corrigendum)

241. GSR 549(E) dated 17-9-97 (Corrigendum)

242. GSR 550(E) dated 17-9-97

243. GSR 551(E) dated 17-9-97 (Corrigendum)

244. GSR 670(E) dated 27-11-97

245. GSR 671(E) dated 27-11-97 (Corrigendum)

246. GSR 64(E) dated 3-2-98

247. GSR 63(E) dated 3-2-98 (Corrigendum)

248. GSR 122(E) dated 5-3-98 (Corrigendum)

249. GSR 178(E) dated 6-4-98

250. GSR 177(E) dated 6-4-98

251. GSR 175(E) dated 6-4-98

252. GSR 172(E) dated 6-4-98

253. GSR 176(E) dated 6-4-98

254. GSR 179(E) dated 6-4-98

255. GSR 171(E) dated 6-4-98

256. GSR 174(E) dated 6-4-98

257. GSR 380(E) dated 25-6-98

258. GSR 382(E) dated 25-6-98 (Corrigendum)

259. GSR 381(E) dated 9-7-98 (Corrigendum)

260. GSR 476(E) dated 7-8-98 (Corrigendum)

261. GSR 477(E) dated 7-8-98 (Corrigendum)

262. GSR 479(E) dated 7-8-98 (Corrigendum)

263. GSR 480(E) dated 7-8-98 (Corrigendum)

264. GSR 381(E) dated 7-8-98 (Corrigendum)

265. GSR 693(E) dated 20-11-98

1. Published in the Gazette of India (Extra), Part-II, Section 3(i) I. No 91, Dated 17.2.199.

The Central Vigilance Commission Ordinance, 1999

(No. 4 of 1999)

Promulgated by the President in the Forty-ninth Year of the Republic of India.

An Ordinance to provide for the constitution of a Central Vigilance Commission to inquire or cause inquiries to be conducted into offences alleged to have been committed under the Prevention of Corruption Act, 1988 by certain categories of public servants of the Central Govern­ment, corporations established by or under any Central Act, Government companies, societies and local authorities owned or controlled by the Central Government and for matters connected therewith or incidental thereto.

WHEREAS the Central Vigilance Commission Ordinance, 1998 was promul­gated by the President on the 25th day of August, 1998;

AND WHEREAS the said Ordinance was amended by promulgation of the Central Vigilance Commission (Amendment) Ordinance, 1998 on the 27th day of October, 1998;

AND WHEREAS the Central Vigilance Commission Bill, 1998 to replace the aforesaid Ordinances was introduced in the House of the People on the 7th day of December, 1998 but has not yet been passed;

AND WHEREAS Parliament is not in session and the President is satisfied that circumstances exist which render it necessary for him to take immediate action to give effect to the provisions of the aforesaid Bill;

NOW, THEREFORE, in exercise of the powers conferred by clause (1) of article 123 of the Constitution, the President is pleased to promul­gate the following Ordinance:—

Chapter I

Preliminary

1. Short title and commencement.—(1) This Ordinance may be called the Central Vigilance Commission Ordinance, 1999.

(2) It shall be deemed to have come into force on the 25th day of August, 1998.

2. Definitions.—In this Ordinance, unless the context otherwise requires,—

(a) “appointed day” means the date on which the Commission is constituted under sub-section (1) of Section 3;

(b) “Central Vigilance Commissioner” means the Central Vigilance Commissioner appointed under sub-section (1) of Section 4;

(c) “Commission” means the Central Vigilance Commission consti­tuted under sub-section (1) of Section 3;

(d) “Delhi Special Police Establishment” means the Delhi Special Police Establishment constituted under sub-section (1) of Section 2 of the Delhi Special Police Establishment Act, 1946 (25 of 1946.);

(e) “prescribed” means prescribed by rules made under this Ordinance;

(f) “Vigilance Commissioner” means a Vigilance Commissioner appointed under sub-section (1) of Section 4.

Chapter II

The Central Vigilance Commission

3. Constitution of Central Vigilance Commission.—(1) With effect from such date as the Central Government may, by notification in the Offi­cial Gazette, appoint in this behalf, there shall be constituted a body to be known as the Central Vigilance Commission to exercise the powers conferred upon, and to perform the functions assigned to it under this Ordinance.

(2) The Commission shall consist of—

(a) a Central Vigilance Commissioner — Chairperson;

(b) not more than four Vigilance Commissioners — Members.

(3) The Central Vigilance Commissioner and the Vigilance Commis­sioners shall be appointed from amongst persons—

(a) who have been or are in an all-India Service or in any civil service of the Union or in a civil post under the Union having knowl­edge and experience in the matters relating to vigilance, policy making and administration including police administration; and

(b) who have held office or are holding office in a corporation established by or under any Central Act or a Government company owned or controlled by the Central Government and persons who have expertise and experience in finance including insurance and banking, law, vigi­lance and investigations;

Provided that, from amongst the Central Vigilance Commissioner and the Vigilance Commissioners, not more than three persons shall belong to the category of persons referred to either in clause (a) or in clause (b).

(4) The Central Government shall appoint a Secretary to the Commission on such terms and conditions as it deems fit to exercise such powers and discharge such duties as the Commission may by regula­tions specify in this behalf.

(5) The headquarters of the Commission shall be at New Delhi.

4. Appointment of Central Vigilance Commissioner and Vigilance Commis­sioners.—(1) The Central Vigilance Commissioner and the Vigilance Commissioners shall be appointed by the President by warrant under his hand and seal:

Provided that every appointment under this sub-section shall be made after obtaining the recommendation of a Committee consisting of—

(a) the Prime Minister — Chairperson;

(b) the Minister of Home Affairs — Member;

(c) the Leader of the Opposition in the House of the People — Member.

(2) No appointment of a Central Vigilance Commissioner or a Vigilance Commissioner shall be invalid merely by reason of any vacan­cy in the Committee.

5. Terms and other conditions of service of Central Vigilance Commis­sioner and Vigilance Commissioners.—(1) Subject to the provisions of sub-sections (3) and (4), the Central Vigilance Commissioner shall hold office for a term of four years from the date on which he enters upon his office or till he attains the age of sixty-five years, which­ever is earlier.

(2) Subject to the provisions of sub-sections (3) and (4), every Vigilance Commissioner shall hold office for a term of three years from the date on which he enters upon his office or till he attains the age of sixty-five years, whichever is earlier.

(3) The Central Vigilance Commissioner or a Vigilance Commissioner shall, before he enters upon his office, make and sub­scribe before the President, or some person appointed in that behalf by him, an oath or affirmation according to the form set out for the purpose in the Schedule.

(4) The Central Vigilance Commissioner or a Vigilance Commis­sioner may, by writing under his hand addressed to the President, resign his office.

(5) The Central Vigilance Commissioner or a Vigilance Commis­sioner may be removed from his office in the manner provided in Sec­tion 6.

(6) On ceasing to hold office, the Central Vigilance Commission­er and every other Vigilance Commissioner shall be ineligible for—

(a) reappointment in the Commission;

(b) further employment to any office of profit under the Govern­ment of India or the Government of a State.

(7) The salary and allowances payable to and the other condi­tions of service of—

(a) the Central Vigilance Commissioner shall be the same as those of the Chairman of the Union Public Service Commission;

(b) the Vigilance Commissioner shall be the same as those of a Member of the Union Public Service Commission:

Provided that if the Central Vigilance Commissioner or any Vigilance Commissioner is, at the time of his appointment, in receipt of a pension (other than a disability or wound pension) in respect of any previous service under the Government of India or under the Government of a State, his salary in respect of the service as the Central Vigilance Commissioner or any Vigilance Commissioner shall be reduced by the amount of that pension including any portion of pension which was commuted and pension equivalent of other forms of retirement benefits excluding pension equivalent of retirement gratuity:

Provided further that the salary, allowances and pension payable to, and the other conditions of service of, the Central Vigilance Commissioner or any Vigilance Commissioner shall not be varied to his disadvantage after his appointment.

6. Removal of Central Vigilance Commissioner and Vigilance Commis­sioners.—(1) Subject to the provisions of sub-section (3), the Central Vigilance Commissioner or any Vigilance Commissioner shall be removed from his office only by order of the President on the ground of proved misbehaviour after the Supreme Court, on a reference made to it by the President, has, on inquiry, reported that the Central Vigilance Com­missioner or any Vigilance Commissioner, as the case may be, ought on such ground be removed.

(2) The President may suspend from office the Central Vigilance Commissioner or any Vigilance Commissioner in respect of whom a refer­ence has been made to the Supreme Court under sub-section (1) until the President has passed orders on receipt of the report of the Su­preme Court on such reference.

(3) Notwithstanding anything contained in sub-section (1), the President may by order remove from office the Central Vigilance Com­missioner or any Vigilance Commissioner if the Central Vigilance Commissioner or such Vigilance Commissioner, as the case may be,—

(a) is adjudged an insolvent; or

(b) has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude; or

(c) engages during his term of office in any paid employment outside the duties of his office; or

(d) is, in the opinion of the President, unfit to continue in office by reason of infirmity of mind or body; or

(e) has acquired such financial or other interest as is likely to affect prejudicially his functions as a Central Vigilance Commis­sioner or a Vigilance Commissioner.

(4) If the Central Vigilance Commissioner or any Vigilance Commissioner is or becomes in any way concerned or interested in any contract or agreement made by or on behalf of the Government of India or participates in any way in the profit thereof or in any benefit or emolument arising therefrom otherwise than as a member and in common with the other members of an incorporated company, he shall, for the purposes of sub-section (1), be deemed to be guilty of misbehaviour.

7. Power to make rules by Central Government for staff.—The Central Government may by rules make provision with respect to the number of members of the staff of the Commission and their conditions of serv­ice.

Chapter III

Functions and Powers of the Central

Vigilance Commission

8. Functions and powers of Central Vigilance Commission.—(1) The functions and powers of the Commission shall be to—

(a) exercise superintendence over the functioning of the Delhi Special Police Establishment insofar as it relates to the investiga­tion of offences alleged to have been committed under the Prevention of Corruption Act, 1988 (49 of 1988);

(b) inquire or cause an inquiry or investigation to be made on a reference made by the Central Government wherein it is alleged that a public servant being an employee of the Central Government or a corporation established by or under any Central Act, Government company, society and any local authority owned or controlled by that Government, has committed an offence under the Prevention of Corrup­tion Act, 1988 (49 of 1988);

(c) inquire or cause an inquiry or investigation to be made into any complaint against any official belonging to such category of officials specified in sub-section (2) wherein it is alleged that he has committed an offence under the Prevention of Corruption Act, 1988 (49 of 1988);

(d) review the progress of investigations conducted by the Delhi Special Police Establishment into offences alleged to have been com­mitted under the Prevention of Corruption Act, 1988 (49 of 1988);

(e) review the progress of applications pending with the compe­tent authorities for sanction of prosecution under the Prevention of Corruption Act, 1988 (49 of 1988);

(f) tender advice to the Central Government, corporations established by or under any Central Act, Government companies, societies and local authorities owned or controlled by the Central Government on such matters as may be referred to it by that Govern­ment, said Government companies, societies and local authorities owned or controlled by the Central Government or otherwise;

(g) exercise superintendence over the vigilance administration of the various Ministries of the Central Government or corporations established by or under any Central Act, Government companies, socie­ties and local authorities owned or controlled by that Government.

(2) The persons referred to in clause (c) of sub-section (1) are as follows:—

(a) Group ‘A’ officers of the Central Government;

(b) such level of officers of the corporations established by or under any Central Act, Government companies, societies and other local authorities, owned or controlled by the Central Government, as that Government may, by notification in the Official Gazette, specify in this behalf:

Provided that till such time a notification is issued under this clause, all officers of the said corporations, companies, societies and local authorities shall be deemed to be the persons referred to in clause (c) of sub-section (1).

9. Proceedings of Commission.—(1) The proceedings of the Commission shall be conducted at its headquarters.

(2) The Commissioner shall observe such rules of procedure in regard to the transaction of the business as may be provided by regu­lations.

(3) The Central Vigilance Commissioner, or, if for any reason he is unable to attend any meeting of the Commission, the seniormost Vigilance Commissioner present at the meeting, shall preside at the meeting.

(4) No act or proceeding of the Commission shall be invalid merely by reason of—

(a) any vacancy in, or any defect in the constitution of, the Commission; or

(b) any defect in the appointment of a person acting as the Central Vigilance Commissioner or as a Vigilance Commissioner; or

(c) any irregularity in the procedure of the Commission not affecting the merits of the case.

10. Vigilance Commissioner to act as Central Vigilance Commissioner in certain circumstances.—(1) In the event of the occurrence of any vacancy in the office of the Central Vigilance Commissioner by reason of his death, resignation or otherwise, the President may, by notifi­cation, authorise one of the Vigilance Commissioners to act as the Central Vigilance Commissioner until the appointment of a new Central Vigilance Commissioner to fill such vacancy.

(2) When the Central Vigilance Commissioner is unable to discharge his functions owing to absence on leave or otherwise, such one of the Vigilance Commissioners as the President may, by notification, authorise in this behalf, shall discharge the functions of the Central Vigilance Commissioner until the date on which the Central Vigilance Commissioner resumes his duties.

11. Power relating to inquiries.—The Commissioner shall, while conducting any inquiry referred to in clauses (b) and (c) of sub-section (1) of Section 8, have all the powers of a civil court trying a suit under the Code of Civil Procedure, 1908 ( 5 of 1908) and in particular, in respect of the following matters, namely:—

(a) summoning and enforcing the attendance of any person from any part of India and examining him on oath;

(b) requiring the discovery and production of any document;

(c) receiving evidence on affidavits;

(d) requisitioning any public record or copy thereof from any court or office;

(e) issuing commissions for the examination of witnesses or documents; and

(f) any other matter which may be prescribed.

12. Proceedings before Commission to be judicial proceedings.— The Commission shall be deemed to be a civil court for the purposes of Section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974) and every proceeding before the Commission shall be deemed to be a judicial proceeding within the meaning of Sections 193 and 228 and for the purposes of Section 196 of the Indian Penal Code (45 of 1860).

Chapter IV

Expenses and Annual Report

13. Expenses of Commission to be charged on the Consolidated Fund of India.—The expenses of the Commission, including any salaries, allowances and pensions payable to or in respect of the Central Vigi­lance Commissioner, the Vigilance Commissioners, Secretary and the staff of the Commission, shall be charged on the Consolidated Fund of India.

14. Annual report.—(1) It shall be the duty of the Commission to present annually to the President a report as to the work done by the Commission.

(2) The report referred to in sub-section (1) shall contain a separate part on the functioning of the Delhi Special Police Estab­lishment insofar as it relates to sub-section (1) of Section 4 of the Delhi Special Police Establishment Act, 1946 (25 of 1946).

(3) On receipt of such report, the President shall cause the same to be laid before each House of Parliament.

Chapter V

Miscellaneous

15. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall lie against the Commission, the Central Vigilance Commissioner, any Vigilance Commissioner, the Secretary or against any staff of the Commission in respect of anything which is in good faith done or intended to be done under this Ordinance.

16. Central Vigilance Commissioner, Vigilance Commissioner and staff to be public servants.—The Central Vigilance Commissioner, every Vigilance Commissioner, the Secretary and every staff of the Commission shall be deemed to be a public servant within the meaning of Section 21 of the Indian Penal Code (45 of 1860).

17. Report of any inquiry made on reference by Commission to be for­warded to that Commission.—(1) The report of the inquiry undertaken by any agency on a reference made by the Commission shall be forwarded to the Commission.

(2) The Commission shall, on receipt of such report and after taking into consideration any other factors relevant thereto, advise the Central Government and corporations established by or under any Central Act, Government companies, societies and local authorities owned or controlled by that Government, as the case may be, as to the further course of action.

(3) The Central Government and the corporations established by or under any Central Act, Government companies, societies and other local authorities owned or controlled by that Government, as the case may be, shall consider the advice of the Commission and take appropri­ate action:

Provided that where the Central Government, any corporation estab­lished by or under any Central Act, Government company , society or local authority owned or controlled by the Central Government, as the case may be, does not agree with the advice of the Commission, it may, for reasons to be recorded in writing, communicate the same to the Commission.

18. Power to call for information.—The Commission may call for reports, returns and statements from the Central Government or corporations established by or under any Central Act, Government companies, societies and other local authorities owned or controlled by that Government so as to enable it to exercise general supervision over the vigilance and anti-corruption work in that Government and in the said corporations, Government companies, societies and local authorities.

19. Power to give directions.—The Commission shall from time to time give directions to the Delhi Special Police Establishment for the purpose of discharging the responsibility entrusted to it under sub-section (1) of Section 4 of the Delhi Special Police Establishment Act, 1946 (25 of 1946):

Provided that the Commission shall not exercise its powers in such a manner so as to require the Delhi Special Police Establishment to investigate or dispose of a particular case only in a particular manner.

20. Power to make rules.—(1) The Central Government may, by notifica­tion in the Official Gazette, make rules for the purpose of carrying out the provisions of this Ordinance.

(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:—

(a) the number of members of the staff and their conditions of service under Section 7;

(b) any other power of the civil court to be prescribed under clause (f) of Section 11; and

(c) any other matter which is required to be, or may be, pre­scribed.

21. Power to make regulations.—The Commission may, with the previous approval of the Central Government, by notification in the Official Gazette, make regulations not inconsistent with this Ordinance and the rules made thereunder to provide for all matters for which provision is expedient for the purposes of giving effect to the provisions of this Ordinance.

(2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:—

(a) the duties and the powers of the secretary under sub-section (4) of Section 3; and

(b) the procedure to be followed by the Commission under sub-section (2) of Section 9.

22. Notification, rule, etc., to be laid before Parliament.—Every notification issued under clause (b) of sub-section (2) of Section 8 and every rule made by the Central Government and every regulation made by the Commission under this Ordinance shall be laid, as soon as may be after it is issued or made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the notification or the rule or regulation, or both Houses agree that the notification or the rule or regulation should not be made, the notification or the rule or regulation shall thereaf­ter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that notification or rule or regulation.

23. Power to remove difficulties.—If any difficulty arises in giving effect to the provisions of this Ordinance, the Central Government may, by order, not inconsistent with the provisions of this Ordinance, remove the difficulty:

Provided that no such order shall be made after the expiry of a period of two years from the date of commencement of this Ordinance.

(2) Every order made under this section shall, as soon as may be after it is made, be laid before each House of Parliament.

24. Provisions relating to existing Vigilance Commission.—With effect from the appointed day the Central Vigilance Commission set up by the Resolution of the Government of India in the Ministry of Home Affairs No. 24/7/64-A VD dated the 11th February, 1964 (hereafter referred to in this section as the existing Vigilance Commission) shall, insofar as its functions are not inconsistent with the provisions of this Ordinance, continue to discharge the said functions and,—

(a) all actions and decisions taken by the existing Vigilance Commission insofar as such actions and decisions are relatable to the functions of the Commission constituted under this Ordinance (hereaf­ter referred to in this section as the new Commission) shall be deemed to have been taken by the new Commission;

(b) all proceedings pending before the existing Vigilance Com­mission, insofar as such proceedings relate to the functions of the new Commission, shall be deemed to be transferred to the new Commission and shall be dealt with in accordance with the provisions of this Ordinance;

(c) the employees of the existing Vigilance Commission shall be deemed to have become the employees of the new Commission on the same terms and conditions;

(d) all the assets and liabilities of the existing Vigilance Commission shall be transferred to the new Commission.

25. Appointments, etc., of officers of Directorate of Enforcement.—Not­withstanding anything contained in the Foreign Ex­change Regulation Act, 1973 (46 of 1973) or any other law for the time being in force,—

(a) the Central Government shall appoint a Director of Enforcement in the Directorate of Enforcement in the Ministry of Finance on the recommendation of the Committee consisting of—

(i) the Central Vigilance Commissioner — Chairperson;

(ii) Secretary to the Government of India

in-charge of the Ministry of Home

Affairs in the Central Government — Member;

(iii) Secretary to the Government of India

in-charge of the Ministry of Personnel

in the Central Government — Member;

(iv) Secretary to the Government of India

in-charge of the Department of Revenue,

Ministry of Finance in the Central

Government — Member;

(b) no person below the rank of Additional Secretary to the Government of India shall be eligible for appointment as a Director of Enforcement;

(c) a Director of Enforcement shall continue to hold office for a period of not less than two years from the date on which he assumes office;

(d) a Director of Enforcement shall not be transferred except with the previous consent of the Committee referred to in clause (a);

(e) the Committee referred to in clause (a) shall recommend officers for appointment to the posts of the level about the Deputy Director of Enforcement and also recommend the extension or curtail­ment of the tenure of such officers in the Directorate of Enforcement;

(f) on receipt of the recommendation under clause (e), the Central Government shall pass such order as it thinks fit to give effect to the said recommendation.

26. Amendment of Act 25 of 1946.—In the Delhi Special Police Estab­lishment Act, 1946, with effect from the appointed day—

(a) after Section 1, the following section shall be inserted, namely:—

“1A. Interpretation section.—Words and expressions used herein and not defined but defined in the Central Vigilance Commission Ordinance, 1999, shall have the meanings, respectively, assigned to them in that Ordinance.”;

(b) for Section 4, the following sections shall be substituted, namely:—

“4. Superintendence and administration of Special Police Establish­ment.—(1) The Superintendence of the Delhi Special Police Establish­ment insofar as in relates to investigation of offences alleged to have been committed under the Prevention of Corruption Act, 1988 (49 of 1988), shall vest in the Commission.

(2) Save as otherwise provided in sub-section (1), the superin­tendence of the said police establishment in all other matters shall vest in the Central Government.

(3) The administration of the said police establishment shall vest in an officer appointed in this behalf by the Central Government (hereinafter referred to as the Director) who shall exercise in re­spect of that police establishment such of the powers exercisable by an Inspector-General of Police in respect of the police force in a State as the Central Government may specify in this behalf.

4A. Committee for appointment of Director.—(1) The Central Government shall appoint the Director on the recommendation of the Committee consisting of—

(a) the Central Vigilance Commissioner — Chairperson;

(b) Secretary to the Government of India

in-charge of the Ministry of Home Affairs

in the Central Government — Member;

(c) Secretary to the Government of India

in-charge of the Minis­try of Personnel

in the Central Government — Member.

(2) While making any recommendation under sub-section (1), the Committee shall consider the views of the Director.

(3) The Committee shall recommend a panel of officers—

(a) on the basis of seniority, integrity and experience in the investigation of anti-corruption cases; and

(b) chosen from amongst officers belonging to the Indian Police Service constituted under the All-India Services Act, 1951 (61 of 1951),

for being considered for appointment as the Director.

4B. Terms and conditions of service of Director.—(1) The Director shall, notwithstanding anything to the contrary contained in the rules relating to his conditions of service, continue to hold office for a period of not less than two years from the date on which he assumes office.

(2) The Director shall not be transferred except with the previous consent of the Committee referred to in sub-section (1) of Section 4A.

4C. Appointment for posts of Joint Director and above, extension and curtailment of their tenure, etc.—(1) The Committee referred to in Section 4A shall, after consulting the Director, recommend officers for appointment to the posts of the level of Joint Director and above and also recommend the extension or curtailment of the tenure of such officers in the Delhi Special Police Establishment.

(2) On receipt of the recommendation under sub-section (1), the Central Government shall pass such order as it thinks fit to give effect to the said recommendation.”.

27. Repeal and saving.—(1) The Central Vigilance Commission Ordi­nance, 1988 (Ord. 15 of 1998), and the Central Vigilance Commission (Amendment) Ordinance, 1998 (Ord. 18 of 1998) are hereby repealed.

(2) Notwithstanding such repeal, anything done or any action taken under the Central Vigilance Commission Ordinance, 1998 (Ord. 15 of 1998), as amended by the Central Vigilance Commission (Amendment) Ordinance, 1998 (Ord. 18 of 1998) shall be deemed to have been done or taken under the corresponding provisions of this Ordinance.

The Schedule

[See Section 5(3)]

Form of oath or affirmation to be made by the Central Vigilance Com­missioner or Vigilance Commissioner:—

“I, A.B., having appointed Central Vigilance Commissioner (or Vigi­lance Commissioner) of the Central Vigilance Commission do swear in the name of God

Solemnly affirm

that I will bear true faith and allegiance to the Constitution of India as by law established, that I will uphold the sovereignty and integrity of India, that I will duly and faithfully and to the best of my ability, knowledge and judgment perform the duties of my office without fear or favour, affection or ill-will and that I will uphold the Constitution and the laws”.

1. Published in the Gazette of India (Extra), Part-II, Section 11 .No. dated 8.1.1999.

1. 1992 Suppl. (1) SCC 335.

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