UNION OF LNDIA AND ORS. versus SUSHIL KUMAR MODI AND ORS.

Citation: [1996] SUPP. 8 S.C.R. 393 · Decided: 05-11-1996 · Supreme Court of India · Bench: J.S. VERMA, K. RAMASWAMY, S.P. BHARUCHA · Disposal: Disposed off
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Judgment (excerpt)

UNION OF lNDIA AND ORS. 
A 
v. 
SUSHIL KUMAR MODI AND ORS. 
NOVEMBER 5,1996 
[J.S. VERMA, K. RAMASWAMY AND S.P. BHARUCHA, JJ.] 
B 
Constitution of India, 1950 : 
Articles 136 and 226- 'Fodder Scam '-Animal Husbandry 
Department in Bihar-Large scale misappropriation of public funds by 
authorities in charge-Writ petition before High Court-Directions by High C 
Court to Central Bureau of Investigation to inquire and scrutinise all cases-
Supreme Court directing that investigation by CBI should be under overall 
control and supervision of Chief Justice of Patna High Court-High Court, 
while considering application of C.B.I. for extension of time, observed 
that reports of investigation should be submitted directly to it without being D 
sent to Director, CBI-Held, the Director, being head of the agency should 
be the person accountable for the entire .functioning of CBI and in that 
capacity answerable and accountable to Court for a proper investigation 
into alleged crimes--Joint Director, CBI would continue to be associated 
with the investigation till its completion-Overall responsibility of 
investigation is that of the Director CBI who will ensure the production of E 
all relevant material before High Court at every relevant stage-Care should 
be taken by Director, CBI to ensure that officers of CBI work in unison and 
as a cohesive team and the High Court is kept fully apprised of all the 
relevant facts to enable it to perform its task in the manner required by this 
Court's order dated 19.3.1996-In case of any difference of opinion between 
officers of CBI in relation to implication of any Individual in the crimes or F 
any other matter relating to investigation, matter would be determined 
according to the opinion of Attorney General for India for the purpose of 
investigation and filing of charge-sheet against any such individual. 
CIVIL APPELLATE JURISDICTION : Civil Appeal Nos. 14164- G 
65 of 1996. 
From the Judgment and Order dated 7.10.96 of the Patna High Court 
in C. W.J.C. Nos. 1617 and 602 of 1996. 
Ashok H. Desai, Attorney General of India, V.R. Reddy, Additional H 
393 
394 
SUPREME COURT REPORTS [ 1996] SUPP. 8 S.C.R. 
A Solicitor General, P. Parmeswaran and A. Mariarputham for the Appellants. 
Ram Jethmalani, Shanti Bhusan, Santosh Hegde, Arun Jaitley, Dr. 
Rejeev Dhavan, Ravi Shankar, Ms. Kamini Jaiswal, P.K. Shahi, Ms. Vimla 
Sinha, Pramod Kumar and Gopal Singh for the Respondents. 
B 
The following Order of the Court was delivered : 
Leave granted. 
These appeals by special leave are against the order dated 7. I 0.1996 
passed by the Patna High Court in CWJC. No. 1617 of 1996 and CWJC 
C No. 602 of 1996. The material facts leading to these appeals, in brief, are 
stated hereafter. 
Writ Petitions numbered as CWJC Nos. 1617 of 1996 and 602 of 
1996 were filed in the Patna High Court alleging large-scale 
D misappropriation of public funds to the extent of several hundred crores 
of rupees by indulging into fraudulent transactions and falsification of 
accounts in the Animal Husbandry Department in the State of Bihar over 
a long period between the years 1977-78 to 1995-96 which has come to 
be known as 'Fodder Scam'. An in-depth investigation into the Fodder 
Scam was called for. The High Court by an order dated 11.3.1996 directed 
E the investigation to be entrusted to the Central Bureau of Investigation 
(CBI) and further directed as under: 
F 
G 
H 
"I would accordingly direct the Central Bureau of 
Investigation (CBI) through its Director to enquire and 
scruitinise all cases of excess drawals and expenditure in the 
Dept!. of Animal Husbandry in the State of Bihar during 
1977-78 to 1995-96 and lodge cases where the drawals are 
found to be fraudulent i'n character and take the investigation 
in those cases to its logical end as early as possible, preferably, 
within four months." 
Aggrieved by this order of the High Court, Civil Appeal Nos. 5177 
of 1996 and 5178-83 of 1996 were filed by special leave in this Court. 
This Court disposed of these appeals by order dated March 19, 1996, 
directing as under: 
"We are also of the opinion that, to alleviate the apprehensions 
U.0.1. v. S. KR. MODI 
395 
of the State about the control of the investigation by the CBI, A 
it should be under the overall control and supervision of the 
Chief Justice of the Patna High Court. The CBI officers 
entrusted with the investigation shall, apart from the concerned 
criminal court, inform the Chief Justice of
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