Kerala High Court Upholds Vigilance Inquiry in Benami Shares Case
Court dismisses petition challenging quick verification order concerning alleged benami transactions by V.J. Kurian
The Kerala High Court, on September 18, 2025, upheld the order for a quick verification into the allegations against V.J. Kurian, a public servant accused of procuring a large quantity of shares in Cochin International Airport Ltd. (CIAL) through benami transactions. The judgment, delivered by Justice A. Badharudeen, dismissed Kurian's petition to quash the investigation, emphasizing the non-applicability of Section 17A of the Prevention of Corruption Act, 2018, in this case.
The allegations revolve around the procurement of shares via a benami named Sebastian, which purportedly contravened the Employees Stock Ownership Plan (ESOP) of CIAL. The court noted that such allegations do not pertain to decisions made in the discharge of official functions, thus excluding them from the protective ambit of Section 17A. This provision requires prior approval for investigations into actions linked to official duties, which was deemed unnecessary here.
The judgment referenced significant precedents, including the Supreme Court's rulings on the Benami Transactions (Prohibition) Act, 1988, highlighting that benami transactions remain punishable despite recent legal challenges. Furthermore, the court underscored the obligation to register an FIR for cognizable offences without preliminary inquiries, citing the landmark Lalita Kumari case.
Justice Badharudeen's decision reflects the judiciary's stance on maintaining transparency and accountability in public service, especially in cases involving allegations of corruption and misuse of official position. The vigilance inquiry will proceed once the necessary approval under the Prevention of Corruption Act is obtained, as directed by the court.
Bottom Line:
Section 17A of the Prevention of Corruption (Amendment) Act, 2018 is not applicable to allegations regarding procurement of large quantity of shares by a public servant through a benami transaction, as such acts do not pertain to recommendations made or decisions taken in discharge of official functions.
Statutory provision(s): Section 17A of the Prevention of Corruption (Amendment) Act, 2018, Sections 3, 4, and 5 of the Benami Transactions (Prohibition) Act, 1988, Section 154 of the Code of Criminal Procedure
V.J Kurian v. State of Kerala, (Kerala) : Law Finder Doc Id # 2780962
