# VINEET NARAIN AND ORS v. UNION OF INDIA AND ANR

- **Citation:** [1996] 1 S.C.R. 1053
- **Court:** Supreme Court of India
- **Decided:** 1996-01-30
- **Bench:** J.S. Verma, S.P. Bharucha, S.C. Sen
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/vineet-narain-and-ors-v-union-of-india-and-anr-13623
- **Pages:** 3

## Headnote

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 invesC
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 regarding 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 Constitution 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 performance 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

## Text

-
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 invesC
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 regarding 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 Constitution 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 performance 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 concerned authorities
have not failed to perform their legal obligations and have reasonably come
to such conclusion. No such report having been submitted by the CBI or
any other agency till now in this Court, action on such a report by this
Court would be considered, if and when that occasion arises. We also
direct that no settlement should be arrived at nor any offence compounded
by any authority without prior leave of this Court.
We may add that on account of the great public interest involved in
this matter, the CBI and other Government agencies must expedite their
action lo complete the task and prevent pendency of this matter beyond
the period necessary. It is needless to observe that the results achieved so
far do not match the available time and opportunity for a full investigation
ever since the matter came to light. It is of utmost national significance that
no further time is lost in completion of the task.
B
c
G.N .
Petition disposed of. D