Rajesh Gupta v. State Through Central Bureau of Investigation
The following Order of the Court was passed:
ORDER
1. This appeal has been filed questioning the validity of the judgment
passed on 25.3.2014 in Criminal Appeal No. 89 of 2009 by the High
Court of Delhi confirming the judgment dated 24.1.2009 passed by Special
Judge, Central District-02, Delhi in C.C. No. 195 of 2001 convicting the
appellant for the offences under Sections 7 & 13 (2) read with Section
13(1)(d) of the Prevention of Corruption Act, 1988 (for short “PC Act”)
and the order of sentence dated 27.1.2009 whereby for the offe nce
under Section 7 of PC Act, the appellant was sentenced to 2 years
rigorous imprisonment with a fine of Rs. 15,000/- and in default, further
simple imprisonment for 30 days and for the offence under Section 13(2)
read with Section 13(1)(d) of PC Act, rigorous imprisonment for 2½
years and fine of Rs. 15,000/-, in default, simple imprisonment for 30
days. Both the sentences were directed to run concurrently.
2. The appellant is an accused in a corruption case under the PC
Act. As per prosecution allegations, the appellant, who was the Assistant
Commissioner of Income Tax, Circle 20(1) at the concerned point of
time demanded and accepted the bribe of Rs.15,000/- from the
complainant PW-3 Madhu Bala in regard to scrutiny of her case, which
was pending with the appellant.
3. The Trial Court, vide judgment dated 24.1.2009, concluded that
on 7.3.2000, the appellant, while working as public servant (Assista nt
Commissioner of Income Tax, Circle 20(1)), demanded bribe from the
complainant PW3- Madhu Bala and in pursuance of his demand,
accepted bribe/illegal gratification of Rs. 15,000/- from her on 9.3.2000
in his office (cabin/chamber). Thus by corrupt and illegal m eans, he
abused his position as a public servant and obtained pecuniary advantage
for himself. The appellant was found guilty for the charge under Sections
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7 & 13(2) read with Section 13(1)(d) of PC Act. The High Court relying
upon the testimony of PW3-Madhu Bala, who was able to identify the
conversation Exb. P2 (cassette) from the transcript though found inaudible
and without proof of non-tampering the same, concluded that the demand
was proved. On the point of acceptance, relying upon the ve rsion of
PW3 Madhu Bala, who was said to put Rs. 15,000/- in a note sheet
towards visitors side of the table underneath a dak-pad and in reference
to the CFSL report, proved the acceptance of bribe demanded by the
appellant. In addition, drawing presumption under Section 20 of PC Act,
confirmed the findings of the Trial Court and the sentence so awarded.
Aggrieved by the said judgments, this appeal has been filed.
4. We have heard Mr. V. Giri, learned senior counsel for the
appellant and Ms. Aishwarya Bhati, learned Additional Solicitor General,
appearing for the respondent at length and have perused the record.
5. In a case of corruption under the PC Act, what is essen tially
required to be proved is demand of money or illegal gratification by the
accused, as well as acceptance and recovery of the sam e from the
accused with motive. In the present case, as per the prosec ution, the
demand by the appellant from the complainant is alleged to be on four
occasions. Twice on 07.03.2000 and again twice on 09.03.2000. On the
first occasion on 07.03.2000, according to the complainant, the demand
is said to have been made by the appellant through t he Chartered
Accountant namely; Mr. Rajiv Jain, according to whom, the appella nt
had demanded a sum of Rs.50,000/- for settlement of the case in favour
of the complainant. Again on the said date itself, i.e. 07.03.2000, when
she visited the office of the appellant along with her em ployee (Mr.
Krishan Kumar), the demand made initially from her was of Rs.75,000/
-, which is said to have been reduced to Rs.50,000/-.
6. The complainant then approached Central Bureau o f
Investigation (CBI) through some high-level connection of her (whose
name she did not disclose), and then on 09.03.2000 she visited the office
of the CBI and met the concerned Officer (Mr. Awasthi) who, a fter
talking to her, advised her to speak to the appellant on phone with regard
to the matter of closing her scrutiny case, for which the alleged demand
of money was made by the appellant. The complainant made the call to
the appellant and the telephone conversation between the complainant
and the appellant accused is said to have been recorded , in which
admittedly the offer of money was being made by the complainant to the
RAJESH GUPTA v. STATE THROUGH CENTRAL BUREAU OF
INVESTIGATION
appellant when she said that she would give only Rs.15,000/- to which
no acknowledgement or acceptance from the side of the appellant was
there, except that the appellant agreed to meet the compla inant in his
office in the evening at about 04.00 p.m. The said conversation has been
produced before the Court as Exb.P-2.
7. The second incident on 09.03.2000 is said to be when the
complainant went to the office of the appellant at about 04.00 p.m.,
accompanied by two independent witnesses, being Constable Babit a
Kapoor, who was not examined and PW5-B.S. Chauhan ( shadow
witnesses), who were both independent government officers, having been
asked by the officials of the CBI to accompany the complainant so that
they could be witnesses of the alleged illegal demand and gratification
being handed over to the appellant. However, the said two independent
shadow witnesses did not go inside the chamber of the appellant when
the alleged demand and transaction of money is said to have taken place.
It is the case of the prosecution that the complainant had gone there
alone inside the chamber of the appellant, which was a shared room in
which there was a partition and other officers namely; PW6-N.C. Swain,
DCIT and PW10-T. Kipgen, ACIT were also present on the other side
of the partitioned room. The complainant had been given a Micro-Cassette
Recorder with a Credit-Card Type Transmitter and the shadow witness
PW5-B.S. Chauhan was given the ear-piece to the Cre dit-Card
Transmitter to listen and record the conversation between the appellant
and the complainant. The said conversations have been produced a s
Exb. P-1 and P-3. The currency notes, which were to be handed over
by the complainant to the appellant, were laced with phenolp hthalein
powder. The complainant is said to have placed currency notes, totaling
Rs.15,000/-, on the visitor side of the office table of the appellant, wrapped
in a piece of paper, which was then covered with the dak pad. There is
no allegation of the money having been handed over personal ly to the
appellant or kept inside the drawer of his table.
8. The complainant is said to have then gone out of the office of
the appellant and thereafter the officers of the CBI entered and conducted
the trap proceedings. They checked the appellant in person and also the
drawers of his office table and his briefcase, but did not find any money,
which was later recovered from the visitors side of the table underneath
the dak pad, which was only on the indication of complainant after she
was called again in chamber. The phenolphthalein test of the appellant
869
was conducted by asking the appellant to dip his hands in Sodiu m
Carbonate solution, but the colour of the solution did not change pink.
However, still the water which was collected and se nt for CFSL
examination, and in such examination report, traces of phenolphthalein
are said to have been found. While the complainant was in the chamber
of the appellant, the conversation was to be recorded by her and also
through the Credit Card Transmitter, but she skipped to push the button
of recorder, therefore, it could not be recorded. The other two officer s
namely; PW6-Mr. N.C. Swain, Dy. CIT and PW10-Kipgen, ACIT, who
were in the same room with a partition, did not support the allegation of
demand and acceptance of bribe by the appellant. It was in these f acts
that the appellant is said to have been made accused and c onvicted in
the case.
9. As regards the alleged demand at the pre-trap stage, it is said
to have been made first time on 07.03.2000 through the Ch artered
Accountant namely, Mr. Rajiv Jain and second time when complainant
visited the office of the appellant on the same date i.e. 7.3.2000 along
with her employee, Krishan Kumar. To prove the said two demands on
7.3.2000, neither Rajiv Jain, Chartered Accountant nor Krishan Kumar
(employee of the complainant) have been examined in the Court. It is to
be observed that before the accused is called upon t o explain the
foundational fact of demand and acceptance, it must be prove d by the
prosecution by cogent evidence. The testimony of the complainant, who
is an interested or partisan witness with the success of t rap, must be
tested in the same way as that of any other interested wi tness. Except
the testimony of PW3 Madhu Balal, no other material has been brought
on record to prove the said demand. Therefore, in our considered view,
pre-trap demand on 7.3.2000 has not been proved by the prosecution,
which is a foundational fact of the case. In our view, the finding recorded
by the Trial Court to prove the pre-trap demand i.e. on 7.3.2000 is without
any evidence on record and based on erratic evaluation , which is
mechanically confirmed by the High Court.
10. At pre-trap stage, the third demand, as alleged, was made on
9.3.2000 on the basis of a telephonic conversation recorded in the office
of CBI. As per the testimony of PW3-Madhubala, second cassette Exb
P-2 is the conversation recorded in the office of CBI. The transcript is
in the shape of a statement of complainant under Section 161 Cr .P.C..
The said recording Exb. P2 was inaudible when played in the court
RAJESH GUPTA v. STATE THROUGH CENTRAL BUREAU OF
INVESTIGATION
during the statement of PW3 Madhu Bala. As per her request, it was re-
played, then only PW3 could identify part of the conversati on taking
clue from the transcript. About some part of the recording in the statement,
she said that her car became out of order and she offered a bout Rs.
15,000/-, but she could not gather other dialogue spoken by the accused,
Rajesh Gupta clearly, except to agree for meeting the a ppellant at 4
P.M. The net conclusion is that the said conversation was inaudible, as
has rightly been observed by the High Court in paragraph 48 of the
impugned judgment.
11. The argument of the counsel for the appellant has substance
that transcript cannot be produced in the form of a stateme nt of the
complainant under Section 161 Cr.P.C. because it was a conve rsation
with the accused and cannot be her own version. At the same t ime,
from the evidence brought on record, the said statement in the shape of
transcript was of 11.6.2001, whereas the alleged incidence occurred 15
months prior thereto i.e. on 9.3.2000. The accused applied to the Trial
Court to supply the transcript of the conversation, if any, prepared in the
office of CBI, but at the time of hearing of the said ap plication, the
Public Prosecutor made a statement before the Court on 1. 4.2002 and
said that no transcript was prepared from the audio casset te Exb. P2,
hence could not be supplied to the accused by Court, and his application
for supply of transcript was disposed of on the basis of t he statement
made at the Bar by the Public Prosecutor. Had the transcr ipt, if any,
been with the prosecution on 11.6.2001, there was no reason for the said
statement having been made before the Court. Thus, the said transcript,
on the basis of which the clue is taken by the appellant while hearing the
inaudible cassette Exb. P2 in the Court, was highly doubtful which, in
our view, cannot be relied upon. It is not out of place to obs erve that
conversation of complainant and appellant in the office of CBI wa s
recorded on the aid and advise of Mr. Awasthi and entire set-up for
recording was arranged by him, but he was not produced as a wi tness
by prosecution to prove the same.
12. On the issue of evidentiary value and credibility of the recording
in the cases of trap, the law is well-settled in the case of Ram Singh vs.
Col. Ram Singh 1985 (Suppl) SCC 611, wherein this Court held that
tape-recorded statement is admissible in evidence if the voice of the
speaker is identified by the maker of the record and o ther persons
recognizing his voice. In case, the maker is unable to identify the voice,
871
strict proof would be required to determine whether or not, the said
voice is of alleged speaker. The accuracy of the tape-recorded statement
must be proved by the maker of the record by satisfactory e vidence,
direct or circumstantial. The possibility of tampering with, or erasure of
any part of the tape-recorded statement must be totally excluded. The
voice of the particular speaker must be clearly audible and must not be
lost or distorted by other sounds or disturbances, otherwise, the transcript
as prepared, is inadmissible in evidence.
13. In view of the above discussion, it is clear that the pre-trap
recording made in the office of CBI and produced as Exb. P2 and stated
by PW3 Madhu Bala in her statement with the clue of transcript is not
testified with the touchstone of the law laid down in the case of Ram
Singh (supra). As apparent from the record, the finding recorded by the
High Court that the said cassette is inaudible, PW3- Madhu Bala, during
playing of the cassette in the court, stated about some of the portion of
the recording looking to the transcript. Once the preparati on of the
transcript itself is in question, as discussed above, clue cannot be taken
from the same and the inaudible cassette cannot be relied upon. Therefore,
in the opinion of this Court, the pre-trap recording for demand i n the
office of CBI vide Exb. P2 on 9.3.2000 has not been proved.
14. The shadow witness PW4-Virendra Prasad was present at
the time of conversation of the complainant and the appellant on 9.3.2000
in CBI office. In his Court statement, he said that the offer was made by
the complainant to the appellant and no demand at the instance of the
appellant was made. While, analyzing the testimony of this witness, the
Trial Court has rightly observed that from the testimony of P W4, it is
clear that no money was demanded by the appellant/accused. The other
shadow witness PW5 B.S. Chauhan, who heard about the talk and was
present in the office of CBI states that the complainant had given offer
of Rs. 50,000/- but there was no positive response showing demand on
behalf of the appellant. He said in examination-in-chief that “aajao dekh
lege”, but in cross-examination, it is specifically stated by him that there
was no demand of money from the side of the appellant/accused. After
due appreciation of the aforesaid, it is clear that the conversation Exb.
P2 is inaudible and not proved. The said conversation which was tried to
be explained on the basis of the transcript is inadmissibl e in evidence
and that too in a statement recorded under Section 161 Cr.P.C. of the
complainant. The transcript dated 11.6.2001 is doubtful, more so in view
RAJESH GUPTA v. STATE THROUGH CENTRAL BUREAU OF
INVESTIGATION
of the Trial Court order dated 1.4.2002 when it was recorded that there
was no transcript avaibable. Thus, in reference to inadmissible transcript,
no inference or even the preponderance of probability of demand can be
established.
15. The fourth demand, as alleged, was on 9.3.2000 in the office
of the appellant at the time of trap. In this regard, the complainant was
advised to accompany PW5 B.S. Chauhan and lady Constable Babita
Kapoor. As per the testimony of PW3 Madhu Bala, it is clear that PW5
B.S. Chauhan and lady Constable Babita Kapoor did not accompany
her to the chamber, which initially she said was out of their own will, but
later she stated that she herself asked them not to accompany her
otherwise the accused would not accept the bribe. Therefore, a t the
time of the trap, it is only the complainant who went inside the chamber
of the accused. She went in the chamber along with Micro-Cass ette
Recorder and a Credit Card Type Transmitter, the ear-piece of which
was with PW 5 B.S. Chauhan. As per the testimony of the complainant,
it is clear that she skipped to start the Micro-Cassette Recorder, which
she was having at the time of trap. Therefore, there is no recording of
the conversation between the accused and the complainant during trap
on 9.3.2000 and its transmission in the Credit Card Transmitter was also
not possible. Further the Court has rightly found that both these exhibits
Exb. P1 & P3 were inaudible as admitted in the statement of PW3
Madhu Bala itself.
16. In view of the above discussion, except for the testimony of
PW3 Madhu Bala (complainant), there is no corroborative evidence of
demand, either on 7.3.2000 or 9.3.2000. The law is well-settled by the
judgments of this Court in Panna Damodar Rathi vs. State of
Maharashtra (1979) 4 SCC 526 and Ayyasami vs. State of Tamil Nadu
(1992)1SCC304, whereby it has been clarified that the sole testimony of
the complainant, who is the interested witness, cannot be r elied upon
without having corroboration with the independent evidence.
17. For an offence under Section 7 of PC Act, the demand of
illegal gratification is a sine qua non to prove the guilt. Mere recovery
of currency notes cannot constitute an offence under Section 7 of PC
Act, unless it is proved beyond reasonable doubt that accused voluntarily
accepted the money, knowing it to be a bribe. The proof of acceptance
of illegal gratification can follow only if there is proof of demand.
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18. In view of the foregoing, there is no iota of evidence by which
the demand can be proved. Thus, the conclusion of the Trial Court and
the High Court to prove the demand is based on surmises and e rratic
approach ignoring the legal position as enunciated, which can not be
sustained on the facts of the case.
19. Reverting to the issue of acceptance of demand, it is not out
of place to refer the judgment of Meena (Smt) w/o Balwant Hemke
vs. State of Maharashtra (2000) 5 SCC 21 wherein this Court held that
mere recovery of the currency notes and positive re sult of the
phenolphthalein test is not enough in the peculiar circumstances of the
case to establish guilt of the appellant. The charge must be proved beyond
reasonable doubt. In absence of proving the recovery from the person
or the drawer of the table or acceptance of the currency notes by accused
with relevant material on record in furtherance to the prove d demand,
the guilt cannot be proved. In the case at hand, the currency notes were
found on the table underneath dak-pad towards the visitors side. According
to the prosecution, the currency notes were laced with phenolphthalein
powder. As per the testimonies of PW3- Madhu Bala, PW4-Vir endra
Prasad and PW5-B.S. Chauhan, it is clear that the recovery of currency
notes was made after calling PW3-Madhu Bala again in the chamber of
the appellant by the trap party and on her indication that the money was
lying at that particular place. When the hands of appellants were dipped
in the solution of sodium carbonate, the colour did not change into pink.
It is merely alleged that the said currency notes were wrapped in a note-
sheet on which the traces of the finger prints of the appella nt were
found, which is treated as acceptance by the appellant. In addition to the
aforesaid, the note sheet paper, in which the curre ncy notes were
wrapped, on being dipped in the solution of sodium carbonate tu rned
pink. After evaluation of the evidence, it is to be observed, safe seizure
of the solution of sodium carbonate has not been brought on record.
Merely the note sheet, in which the money was wrapped, on dipping in
the Sodium Carbonate solution turned pink, traces of which were found
in CFSL report, is not sufficient to prove the guilt of the appellant, in
particular, when the currency notes laced with phenolphthalein powder
were found towards the visitors side on the table and not recov ered
from the person or drawer of his table and the solution in whi ch the
hands of appellant were dipped, did not turn pink. In the facts and
circumstances of the case, in our opinion, the evidence so brought is not
RAJESH GUPTA v. STATE THROUGH CENTRAL BUREAU OF
INVESTIGATION
cogent and sufficient to prove the acceptance of bribe b y the accused/
appellant.
20. On the said issue, the judgments of this Court in B. Jayaraj
vs. State of Andhra Pradesh (2014) 13 SCC 55 C.M. Girish Babu vs.
CBI (2009) 3 SCC 779 are relevant, whereby this Court has clearly
spelt out that the recovery shall follow the proof of demand. The
presumption under Section 20 of PC Act can be drawn only when the
demand is proved and the money is voluntarily accepted, knowing the
fact that the said money has been delivered by way of bribe. In absence
of proof of demand for illegal gratification and mere poss ession or
recovery of the currency notes is not sufficient to constitute such offence.
It is clarified that presumption under Section 20 PC Act c an be drawn
only after demand and acceptance of illegal gratification is proved beyond
reasonable doubt. In our considered opinion, the findings as recorded by
the Trial Court and the High Court, drawing presumption under Section
20 of the PC Act, are completely perverse in law. There is no evidence
to prove the demand and the acceptance. The theory of preponderance
of probabilities, as applied in this case, is not sustainable and the finding
of the High Court is liable to be set-aside.
21. As per the discussion made hereinabove, it is clear tha t the
concurrent findings recorded by the Trial Court, and affirmed by the
High Court, are not based on due appreciation of the material brought on
record in the right perspective. In fact, it is a case in which no cogent
evidence is available to prove the guilt of the accused f or an offence
under Sections 7 & 13(2) read with Section 13(1)(d) of PC Act. As per
discussion made above, in the case at hand, the concurrent finding s in
the judgments of the Courts below cannot dissuade this Court from
interfering in a case like this where the findings of conviction have been
recorded merely on conjectures and erratic evaluation of evidence. The
Court is always having an obligation of judicial conscience to correct the
errors where the same are manifest. In our considered o pinion, the
judgments of the Courts below suffer from serious infirmities and manifest
error. There is no proof of demand at pre-trap stage or during trap. The
Courts must not over-look the fundamental principle of ignoranc e of
accused till the charge levelled against the appellant is established beyond
reasonable doubt. Therefore, in our view, the conviction of the appellant
has not been proved and the evaluation is based on conjectures a nd
erratic evaluation.
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22. As such, we set aside the concurrent judgments of the Trial
Court as well as of the High Court and hold the appellant to be not guilty
of the charges against him. Consequently, the appeal stands allow ed.
The appellant is honourably acquitted.
Devika Gujral Appeal allowed.
(Assisted by : Mahendra Yadav, LCRA)
RAJESH GUPTA v. STATE THROUGH CENTRAL BUREAU OF
INVESTIGATION