RAIPUR: The Chhattisgarh High Court has denied bail to retired IAS officer Anil Tuteja in the District Mineral Foundation scam, observing that the gravity of the offence, the petitioner’s role and his earlier position as a senior officer had to be considered while deciding the plea.
Justice Narendra Kumar Vyas was dealing with the bail application of Tuteja, who was arrested in February this year under provisions of the Prevention of Corruption Act, 1988. The court noted that the petitioner had earlier held an influential position and that there was a strong likelihood he could tamper with evidence, influence witnesses or obstruct the investigation if released on bail.
Court Weighs Gravity Of Allegations
The court said it had to examine the seriousness of the offence, the role played by the petitioner and his ability to influence witnesses, since he had been a senior officer in the department. It also noted that a huge amount of public funds was allegedly pilfered by the applicant in connivance with suppliers.
The case stems from an investigation by the Economic Offences Wing and Anti-Corruption Bureau, initiated after a 2024 information report from the Enforcement Directorate regarding alleged corruption in the use of DMF funds in Korba district.
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Tuteja was arrested on February 23, 2024, for his alleged involvement in multiple financial irregularities, including the DMF, rice milling and liquor scams. The prosecution alleged before the High Court that between 2019 and 2022, while serving as an additional secretary in the Industry Department, Tuteja acted as a “central position coordinator and influencer.”
Alleged Misuse Of Official Position
The prosecution alleged that Tuteja played a pivotal role by misusing his official position to manipulate the allocation and execution of works under the DMF fund. It was further alleged that he provided undue advantage to select private entities by influencing district-level administrative authorities and orchestrated illegal allotment of works in return for pecuniary benefits.
Various developmental works, including smart classes, mini science labs, RO systems and furniture supply, were undertaken under the DMF scheme. Investigators alleged that the accused deliberately ensured allocation of such works to favoured individuals, including Vinod Rathi, Kishan Tuteja and Lalit Bhansali.
It was further alleged that Lalit Bhansali and Ashish Rathi were facilitated with DMF works exceeding ₹50 crore through their firms, Maa Ganga Enterprises and Yash Enterprises, on account of misuse of official position.
Bail Rejected As Probe Continues
An FIR was registered against the applicant under sections 420, 120(B), 467, 468 and 471 of the Indian Penal Code, and sections 7 and 12 of the Prevention of Corruption Act, 1988.
The prosecution told the court that during the investigation, a memorandum of co-accused Satpal Singh Chhabra was recorded. Chhabra allegedly disclosed that since 2019, he had been facilitating supply works in the Agricultural Department after being approached by Mandeep Chawla, who proposed securing departmental works through the influence of the applicant.
The High Court noted that the case diary, FIR and Chhabra’s statement prima facie established the applicant’s involvement in the offence. It also observed that Chhabra allegedly received ₹16 crore as illegal commission from firms and that part of it had been paid to the applicant.
The court held that public funds had allegedly been misused by private enterprises through systematic abuse of official position, causing grave prejudice to public interest while the investigation was still in progress. It said delay in trial does not always give an accused the right to be released on bail.
The court also observed that economic offences are committed with deliberate design and an eye on personal profit, and must be approached differently in bail matters because of their consequences for the community, national economy and public interest. It said custody was required to elicit the truth regarding Chhabra’s allegations and rejected the bail application.
