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Report No. 161

5.3. Penal action also attracted for abuse of official position.-

In the matter of a housing scam, the Supreme Court in the case of Shiv Sagar Tiwari v. Union of India, (1996) 6 SCC 599, referred to the relevant part of its order dated 19.7.96, quoted below:-

"Mr. N.N. Singh, Superintendent of Police, CBI, New Delhi has placed on record Interim Report No. 3 dated 17.6.1996 and Interim Report No. 4 dated 16-7-1996. Interim Report No. 3 indicates that a separate preliminary enquiry was registered against Smt. Shiela Kaul and others in the matters of allotment of shops/stalls made by her on 7-6-1995 and 3-7-1995 in favour of her close relatives/friends of her personal staff as well as those of the officials of Directorate or Estates.

According to the report, the preliminary enquiry, prima facie-, establishes that Smt Shiela Kaul had abused her official position as the Minister for Urban Development and she had entered into a criminal conspiracy with some of the acquaintances and her personal staff, pursuant to which she in abuse of her official position, made these allotments and caused wrongful loss to the Government by effecting allotments on economical licence fees basis without inviting any tender or by issuing public notice for inviting the response from the general public from the point of view of earning maximum revenue for the Government. A regular case under sections 120B, 420, 468/471, I.P.C. and section 13(2) read with section 13(1)(d) of the Prevention of Corruption Act, 1988, has been registered against Shiela Kaul and her Additional Private Secretary Rajan S. Lala and others."

Thus it was held that when a public functionary had abused her official position and caused wrongful loss to the government, she was liable for prosecution under the relevant provisions of the Prevention of Corruption Act, 1988 and I.P.C.



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