VINEET NARAIN AND ORS versus UNION OF INDIA AND ANR.

Citation: [1996] 1 S.C.R. 1053 · Decided: 30-01-1996 · Supreme Court of India · Bench: J.S. VERMA, S.P. BHARUCHA, S.C. SEN · Disposal: Disposed off

Cited by 4 judgment(s) · see the full citation network in Lexace

Judgment (excerpt)

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VINEET NARAIN AND ORS. 
A 
v. 
UNION OF INDIA AND ANR. 
JANUARY 30, 1996 
[J.S. VERMA, S.P. BHARUCHA AND S.C. SEN, JJ.] 
B 
Hawala Transactions : 
Investigation-Conduct of-EvCT)' accusation against each and eve1y 
person in-espective of the position and status of that person, must be inves-
C 
tigated expeditiously-Impa1tial working of Govemment agencies Imperative 
to retain public-Confidenc,,..-{)irections issued. 
CRIMINAL ORIGINAL JURISDICTION 
Writ Petition (Cr!.) 
Nos. 340-43 of 1993. 
(Under Article 32 of the Constitution of India.) 
. Anil B. Diwan, Ms. Lata Krishnamurthy, A.K. Sahoo and Ms. Kamini 
Jaiswal for the Petitioners. 
D 
D.P. Gupta, Solicitor General and N. Natarajan, P. Parameshwaran E 
for the Respondents. 
The following Order of the Court was delivered : 
The true scope of this writ petition has been indicated during the 
earlier hearings. At this stage. when some charge sheets have been filed in F 
the Special Court and there is considerable publicity in the media regard-
ing this matter, with some speculation about its true scope, it is appropriate 
to make this order to form a part of the record. 
The gist of the allegations in the writ petition are that Government G 
agencies, like the CBI and the revenue authorities, have failed to perform 
their duties and legal obligations inasmuch as they have failed to properly 
investigate matters arising out of the seizure of the so called "Jain Diaries" 
in certain raids conducted by CBI. It is alleged that the apprehending of 
certain terrorists led to the discovery of financial support to them by 
clandestine and illegal means, by use of tainted funds obtained through H 
1053 
1054 
SUPREME COURT REPORTS 
[1996] 1 S.C.R. 
A 
'hawala' transactions; that this also disclosed a nexus between several 
important politicians, bureaucrats and criminals, who are all recipients of 
money from unlawful sources given for unlawful considerations; that the 
the CBI and other Government agencies have failed to fully investigate into 
the matter and take it to the logical and point of the trial and to prosecute 
B 
c 
all persons who have committed any crime; that this is being done with a 
view to protect the persons involved, who are very influential and powerful 
in the present set up; that the matter discloses a definite nexus between 
crime and corruption in public life at high places in the country which 
poses a serious threat to the integrity, security and economy of the nation; 
that probity in public life, to prevent erosion of the rule of law and the 
preservation of democracy in the country, requires that the Government 
agencies be compelled to duly perform their legal obligations and to 
proceed in accordance with law against each and every person involved, 
irrespective of the height at which he is placed in the power set up. 
The facts and circumstances of the present case do indicate that it 
D 
is of utmost public importance that this matter is examined thoroughly by 
this Court to ensure that all Government agencies, entrusted with the duty 
to discharge their functions and obligations in accordance with law, do so, 
bearing in mind constantly the concept of equality enshrined in the Con-
stitution and the basic tenet of rule of law : "Be you ever so high, the law 
E 
is above you". Investigation into every accusation made against each and 
every person on a reasonable basis, irrespective of the position and status 
of that person, must be conducted and completed expeditiously. This is 
imperative to retain public confidence in the impartial working of the 
Government agencies. 
F 
In this proceeding we are not concerneu with the merits of the 
G 
accusations or the individuals alleged to be involved, but only the perfor-
mance of the legal duty by the Government agencies to fairly, properly and 
fully investigate into every such accusation against every person, and to take 
the logical final action in accordance with law. 
In case of persons against whom a prima facie case is made out and 
a charge sheet is filed in the competent court, it is that court which will 
then deal with that case on merits, in accordance with law. 
However, if in respect of any such person the final report after full 
H investigation is that no prima facie case is made out to proceed further, so 
'y 
I 
.. 
VINEET NARAIN v. U.0.I 
1055 
lhal the case must be closed against him, that report must be promptly A 
submitted to this Court for its satisfaction that the con

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