Andhra Pradesh High Court is now hearing the multi-crore Skill Development Scam case involving ex-CM N #ChandrababuNaidu
Follow this thread for Live updates.
Follow this thread for Live updates.
#ChandrababuNaidu has moved petitions for quashing as well as cancellation of his judicial remand.
Senior counsel Harish Salve appearing for #ChandrababuNaidu virtually
Salve: This is to challenge the FIR. This FIR was investigated and only in 2023, memo was filed. It is now common ground, that no permission under Section 17A (sanction) was granted
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Salve: Our contention is that this FIR is completely illegal. The judgements relied on by the Advocate General is wrongly interpreted...
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Salve: They have filed the complaint fully knowing about the provisions of Section 17A (Prevention of Corruption Act). They haven't taken the first step necessary to file the FIR...
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Salve: Here, it is not the date of offence. [Case was registered in 2021] Any investigation which is conducted must follow the law as in place. It cannot be contrary to the law in place at the time of the investigation...
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Salve: And this happens all the time. The law as on the date on which the action is taken is to be considered. We submit, as far as CM is concerned, Governor needs to give permission.
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Salve: There is no ambiguity in the language of the provision. And secondly, Lordship may also see, you (Naidu) don't have to currently be a public servant
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Salve: If you go back to Section 17A and see..."in the case of a person who IS or WAS employed"...
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Salve continues: The word "any other person" [in sub-section (c)] will have to take colour from the same, and it should apply to both past and present [functionaries]
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Salve: The reason why this provision was inserted is precisely to combat the "Regime Revenge Litigation".
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Salve: The State has given us the counter this morning. Half an hour ago!
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Salve: In the counter they have just regurgitated the allegations. We have a case on merits...
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Salve: In this case SC evaluated the FIR and came to the conclusion that no offence is made out in the complaint...
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Salve quotes from Arnab Goswami case:
"High Court should not foreclose itself from the exercise of the power when a citizen has been arbitrarily deprived of their personal liberty in an excess of state power."
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"High Court should not foreclose itself from the exercise of the power when a citizen has been arbitrarily deprived of their personal liberty in an excess of state power."
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Salve: With this my lord, let's get to the facts. This is an open and shut case. This is 'Regime Revenge'. We know 2024 #GeneralElection are coming. It's ironic that he would tamper with witnesses...
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Salve: The complaint as filed was a GST complaint. Your lordship had dealt with this case for the other accused
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Salve: There was a project to establish technical skill developing centers, on the premises that 90% would be paid by private industries, and 10% by State
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Counsel for State: Is this (proceedings) also revenge politics?
Salve: You had to give us the counter last night...
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Salve: You had to give us the counter last night...
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Salve: The suggestion that everything was done quietly, henchmen were used...it's almost embarrassing. The report, everything is there in public domain...
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Salve: They have looked at the various elements of the project- Project estimate, copy of valuation is submitted and each cost and sub-cost is evaluated...
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*Salve reading valuation report and claiming how detailed it is*
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Salve: Then the report goes head by head, gives manpower, experts, insurance...the cost was accepted, everything was being brought by the private companies, the government was only bringing in cash.
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Salve reading 'scope of services' from the report:
AP State Skill Development Corporation will demarcate necessary land and get permission. And give a total sum of 330 crores.
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AP State Skill Development Corporation will demarcate necessary land and get permission. And give a total sum of 330 crores.
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Salve: 330 crore is for all the centres my lord. Roughly 10% of the installation value
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Salve reading from the contract, showing that State had only limited liability and majority was being brought by the private companies. Also trying to show that both parties had agreed to the terms.
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Salve: After this agreement was signed, there is also an undertaking to complete the project and their individual liabilities
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Salve: There was a project, project was valued, it was put in place and now centers were being handed over one by one. The hand over letters are also filed.
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Salve: But see how the complaint has come up in "regime revenge". It's complete abuse of power, complete!
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Salve: Siemens claimed that one of their sub-companies has done the work. The work has been done, the centres have come up, that is not in doubt.
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Salve: Seimnes says the took CENVAT invoices. Grabbing this opportunity, the chairman of AP State Skill Development Corporation (APSSDC) writes this complaint
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Salve: Now look at this complaint. He doesn't say the centres have not been formed. They have been formed!
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Salve: This is the stupidity of the allegation, this was a tax complaint, the money was given for centre, centres are up and running, whether they have inflated invoices, these are matters of their internal functioning, how are we concerned?
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Salve: Now my lord, this is a CENVAT issue. Nobody is saying investigate if centres were set up. Charges have been framed straight under PC Act...straight!
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Salve: Now at this stage, I have already made my point. Section 17A stands in their way, they have not taken sanction. Now about the memo, by way of which petitioner was roped in.
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Salve: Hopelessly drummed up complaint! They never say that service was not rendered. They say sub-contractors did not deliver and hence State's money is wasted. That's not for us to go into, it starts on the wrong foot. It's a nonsensical allegation.
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Salve referring to complaint: What sort of language is this? We are talking about senior civil servants. What is 'henchman'
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Salve reading from complaint: "...appointed 'henchmen'..." all this is rubbish! This is all throwing muck.
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Salve: Now my lord, the central agencies say the cost was a fair cost, but the complaint says they (private industries) made so so profit...then one must also charge the central agencies who have approved the price.
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Salve: This vocabulary against former civil servants...this makes me wonder if the police man was acting as a 'henchman'
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@APPOLICE100 Salve: The obligation was that the private industries will set up, and 10% will be given by government. The centres have been set up, what more is required?
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@APPOLICE100 Salve: 2 lakh 13 thousand students are trained. 40 skill development institutes were set up. Everywhere centre was set up and given over to the institution (colleges)...
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@APPOLICE100 Salve: What has to be seen is whether prima facie case was made out?. And even though we got the counter just now, there is nothing new.
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@APPOLICE100 Salve: In a lighter way, if he tries to flee, they will withdraw the prosecution
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@APPOLICE100 Salve: Ritualistic contamination of witnesses- a pattern of the police!
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@APPOLICE100 Salve: I may be bold to say, it's not about tampering witnesses, it's about the prosecution manipulating the witnesses
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@APPOLICE100 Salve: What is the glaring need for custody? He was cooperative. There is no doubt.
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@APPOLICE100 Luthra: My learned friends want to do away with Section 17A provision. It's a case of procedural law. And it is settled.
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@APPOLICE100 Luthra: FIR registered prior to 2018 amendment, would not be considered (for sanction). However, this FIR is not like that.
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@APPOLICE100 Luthra cites case of Kinjarapu Atchannaidu (2020). It involved a long period of alleged instances, either prior to PCA amendment or thereafter.
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@APPOLICE100 Luthra: Atchannaidu is in my favour. It was held therein that 17A has burdened the authorities with certain obligations/ liabilities...Though procedural in nature...has ultimate effect on the prosecution
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@APPOLICE100 Luthra refers to a Karnataka HC judgement. Reiterates that 17A is a procedural MANDATE
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@APPOLICE100 Luthra: the decisions that I have taken are subject matter of the allegations. It's not like I and a private individual had an issue and I a public servant took decision. That was not the case here...
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@APPOLICE100 #ChandrababuNaiduArrest hearing in quashing plea resumes
@APPOLICE100 State's counsel Mithun Rastogi begins submissions: Please note, the petitioner (Naidu) was arrayed as an accused on 7th and arrested on 9th. Petition was filed on 12th and today is 19th. Only 10 days have passed, investigations has just commenced
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@APPOLICE100 Rastogi: On factual grounds it is my respectful submission that the Court should not take up the matter today, because the investigation is just starting. The the other side has filed 900 page document, which is served on us now
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@APPOLICE100 Rastogi: The case is completely nascent; investigation cannot be completed in 10 days, especially when petitioner has applied for bail.
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@APPOLICE100 Rastogi: Argument on Section 17A is completely misconceived. Prima facie, 17A has no bearing. State exchequer has been misused. 17A on the face of it does not apply.
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@APPOLICE100 Rastogi: Partaking in a scam, by which 370 crores have been deliberated in a calculated manner...this can never be 'in discharge of public duty'
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@APPOLICE100 Rastogi: To put it crudely, if a "loot" is made of government fund, it cannot be considered under public duty, just because it has been signed off by a civil servant.
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@APPOLICE100 Rastogi: We are investigating. The tax agency and PMLA are investigating. This is not a case where somebody says build a dam but later on it got swept away in flood. In that case the intent was public benefit.
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@APPOLICE100 Rastogi: In the present case, it was a calculated scam and it cannot be guised as official duty
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@APPOLICE100 Rastogi: Section 17A is to protect innocent servants, who have taken decisions for public benefit.
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@APPOLICE100 Rastogi: The amendment came in 2018, and the offence finds its origin prior to 2018. Cites Tejmal Choudhary case
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@APPOLICE100 Rastogi: Sanction was taken in the year 2021, but it was not required, because the incident happened prior to the amendment
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@APPOLICE100 Rastogi cites Sambhoo Nath Misra case.
"It is not official duty to fabricate records and misappropriate funds."
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"It is not official duty to fabricate records and misappropriate funds."
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@APPOLICE100 Rastogi: There is a well oiled, deliberated scam which flows from the fountain head of the government.
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@APPOLICE100 Rastogi referring to Naidu's quashing plea: The Bible on 482 is Neeharika Infrastructure judgement
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@APPOLICE100 Rastogi reads:
"when investigation by police is in progress, court shouldn't go into merits of allegations. Police must be permitted to complete investigation. It would be premature to pronounce conclusion based on hazy facts"
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"when investigation by police is in progress, court shouldn't go into merits of allegations. Police must be permitted to complete investigation. It would be premature to pronounce conclusion based on hazy facts"
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@APPOLICE100 Rastogi: Offence will clearly be made out, subject to further investigation. Court will not thwart the offence. Only when no cognizable offence is made out, in the RAREST OF RARE CASES, in the context of 482, has been introduced to streamline the abuse.
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@APPOLICE100 Rastogi: The investigation has just commenced. IT department is conducting enquiry, ED is conducting enquiry. The allegations should be taken on face value till end of investigation.
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@APPOLICE100 Rastogi: Criminal proceedings ought not to be scuttled at the initial stage. This is not even initial stage. Courts are barred from "usurping investigation"
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@APPOLICE100 Rastogi: His only case is that I was Chief Minister, hence issue is political.
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@APPOLICE100 Rastogi: Court needs to follow the guidelines. Let the investigation be complete. And let the investigation authority submit a report. The court is not required to go into merits.
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@APPOLICE100 Rastogi: If you add somebody later, you cannot argue that my name was not on the FIR. FiIR is not an encyclopedia. Even charges can be added through out and even during trial.
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@APPOLICE100 Rastogi: State has been fair. They did not add the accused back in 2021 to stop the issue from becoming political. Only when they had enough material, his name was added.
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@APPOLICE100 Rastogi: The other side has relied on Arnab Goswami case. The ratio in that case was that 'free speech will not be scuttled'. That is not the case in the present case. The professions are completely different
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@APPOLICE100 Rastogi: There is an MOU between two companies on one hand, and one with the AP Corporation. So it's a tripartite agreement.
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@APPOLICE100 Rastogi: Before the private institution set anything up, the 300 crores were transferred.
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@APPOLICE100 Rastogi: Now the two private companies set up another company called Skillar and this Skillar sent the money to 6 shell companies and willy nilly, the money was withdrawn
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@APPOLICE100 Rastogi: Never does it happen that State gives money. Here it is dolled out right in the beginning?
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@APPOLICE100 Rastogi: If the State was vengeful, this gentleman (Naidu) would be arrested in a few days
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@APPOLICE100 Rastogi: MOU does not talk about sub-contract. All these companies are shell companies and all of them are taking money without any services rendered. This is how it was done.
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@APPOLICE100 Rastogi now refers to the memo filed to add Naidu to the case:
"Manipulation was done solely under the leadership of A37 ( Naidu)...he has sanctioned the setting up of shell companies and transfer of funds"
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"Manipulation was done solely under the leadership of A37 ( Naidu)...he has sanctioned the setting up of shell companies and transfer of funds"
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@APPOLICE100 Rastogi: 17A does not apply because it is not the job of a civil servant to fabricate and misappropriate.
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@APPOLICE100 Adv Ranjit Kumar continuing for State: Other side is getting angry at words used like ' henchmen'. But these were all trained officials in their respective field.
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@APPOLICE100 Kumar: Till now I didn't have documents. A1 (then Special Secretary to AP government) had raised a query to Seimens, if the same project was 1 crore in Gujarat, why is it so high here? We have email communication.
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@APPOLICE100 Kumar: Please see the income tax, of course it doesn't relate to this case, but it shows a modus operandi.
Justice K. Sreenivas Reddy: It is not in connection, why should we look at this?
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Justice K. Sreenivas Reddy: It is not in connection, why should we look at this?
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@APPOLICE100 Kumar: Notices were sent to the Secretary and he has fled the country.
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@APPOLICE100 Kumar: A preliminary inquiry was held, your lordship needs to examine case diary, to understand why it has taken us 1.5 years to add A37 (Naidu).
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@APPOLICE100 Kumar: Arrest is not based just on an FIR. Here we are talking about Skill Development and there they are developing a "different kind of skill"
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@APPOLICE100 Kumar: A1 (Subba Rao Ghata) sent email to Siemens, and marked CC to Lakshmi Narayan (then APSSDC director).
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@APPOLICE100 Kumar reads email comparing AP project to Gujarat setup:
"cost of machine might be 1 crore, how come claim is more? It's totally unreasonable'
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"cost of machine might be 1 crore, how come claim is more? It's totally unreasonable'
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@APPOLICE100 Kumar: Going back to (non) application of Section 17A, it is our understanding and the scam took place before 2018.
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@APPOLICE100 Bench: Pausing here for a second, who identifies the sub-contractors? Please explain to me the role of petitioner (Naidu) in selection of sub-contractor
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@APPOLICE100 Kumar: Income tax notice issued to the petitioner shows similar transactions from different projects. This shows the modus operandi
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@APPOLICE100 Kumar: Forensic audit was conducted. Report submitted showing that design tech diverted funds of over 200 crores. Also, there was no date on the agreement.
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@APPOLICE100 Kumar: One month after the execution of MoA for sub-contractor and having no previous agreement, Skillar was incorporated. Design tech has shown 178 crores purchases from Skillar.
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@APPOLICE100 Kumar: None of the documents have any dates, neither the proposal nor the agreement
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@APPOLICE100 Kumar: In Section 161 statement, the accused have taken a stand that the agreement was placed before them to merely sign
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@APPOLICE100 Kumar: Everything that was required to happen has not happened. And in the counter how the financial notices were overruled have been mentioned in a chart form
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@APPOLICE100 Kumar reading from Case diary- there is no verification. And these are amounts given in 2015-2016 (prior to 2018 PCA Amendment)
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@APPOLICE100 Kumar refers to Priti Saraf Vs. State Of NCT Of Delhi
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@APPOLICE100 Kumar reads:
"to exercise powers under Section 482 CrPC, the complaint in its entirety shall have to be examined on the basis of the allegation and High Court not under obligation to examine its correctness."
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"to exercise powers under Section 482 CrPC, the complaint in its entirety shall have to be examined on the basis of the allegation and High Court not under obligation to examine its correctness."
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@APPOLICE100 Salve interjects: Please turn to section 17A. I was almost surprised to hear that this doesn't relate to decisions or recommendations made...
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@APPOLICE100 Salve on 17A: Right from saying he (Naidu) is the one that passed an order, he appointed his henchman as a chairman. That is (official) decision. He is the one who made the negotiations, that is the charge
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@APPOLICE100 Salve: Nobody has a vested right in procedure. Any FIR post 2018 needs to comply with 17A
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@APPOLICE100 Salve: One ground is, if a reading of the FIR shows that no allegation was shown, the might of the State cannot be used to put somebody down
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@APPOLICE100 Salve: The arguments by other side were like two ships passing in the night, we made one argument, they replied to something else.
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@APPOLICE100 Salve: Central agency approved the valuation. State is trying to show price of screwdrivers, etc. What is of importance is that 6 institutions are up and running
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@APPOLICE100 Salve: Siemens did a project in Gujarat. State says somebody suggested a pilot project. How does that make a difference? The project went as planned.
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@APPOLICE100 Salve: I read the agreement that shows our share and their share. They did not need to give anything in cash. The project was successful, it was delivered. 90% was in kind.
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@APPOLICE100 Salve: What design tech might have done to save taxes is where the problem started, to involve the petitioner is malafide. That's our case.
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@APPOLICE100 Salve: What State didn't answer is, the 6 institutions have been set up and are running. If that is so, then the resources of the State have been utilised
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@APPOLICE100 Salve: Now this is a political battle for the 2024 #GeneralElection. It is evident. That's why I say, if the petitioner is a flight risk, they will happily allow him to go.
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@APPOLICE100 Addl AG P. Sudhakar Reddy: Preliminary inquiry was already ordered on 5th June 2018, prior to introduction of Section 17A in 2018 Amendment.
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@APPOLICE100 AAG Reddy on 17A: When IPC offences are there, I need not get sanction. Secondly, it says that inquiry should not start after Amendment. But inquiry had already started way back. It's not about FIR. In 2015 itself the questions had arisen
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@APPOLICE100 Kumar: Your lordship, the judgment of Arnab Goswami was overruled by judgement in Neeharika. It cannot be said that the lordships were unaware of the previous judgement
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@APPOLICE100 Kumar: We can file counter only by next Friday
Salve: Their arguments are contradictory. First we heard that investigation is in inception stage. Then they have said inquiry started in 2018?
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Salve: Their arguments are contradictory. First we heard that investigation is in inception stage. Then they have said inquiry started in 2018?
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@APPOLICE100 Salve: What is fascinating is that 4.5 years after being a government, you now come and say that documents are going missing? Today they have destroyed the files and are blaming us? What nonsense!
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@APPOLICE100 ^Luthra: These arguments that were made by AAG, we need to keep in mind that they are concerning somebody's personal liberty
#ChandrababuNaiduArrest
#ChandrababuNaiduArrest
@APPOLICE100 Luthra: I am concerned about the 2021 complaint. I cannot contemplate what they want me to deal with? 2021 complaint was registered, after that everything happened, so why are we on 2018?
#ChandrababuNaiduArrest
#ChandrababuNaiduArrest
@APPOLICE100 Bench: If you have to make any submissions, make now, we are disposing it off finally. I am very clear in that aspect. I have heard it for the whole day
#ChandrababuNaiduArrest
#ChandrababuNaiduArrest
@APPOLICE100 Luthra: There is a pattern in the State of #AndhraPradesh where randomly documents are going missing
#ChandrababuNaiduArrest
#ChandrababuNaiduArrest
@APPOLICE100 Luthra: When A1 is the Chairman, when A1 has made the speech in the House, when he has released funds. All of this was done on the saying of A37 (Naidu). Now once this is your claim, how can you say Section 17A is not applicable?
#ChandrababuNaiduArrest
#ChandrababuNaiduArrest
@APPOLICE100 Luthra relies on Justice Joseph's concurring opinion in Rafale case
#ChandrababuNaiduArrest
livelaw.in
#ChandrababuNaiduArrest
livelaw.in
@APPOLICE100 Luthra: Issue in Rafale was exactly the same. The claim of the State was that the actions of petitioner do not warrant Section 17A sanction
#ChandrababuNaiduArrest
#ChandrababuNaiduArrest
@APPOLICE100 Luthra: Neeharika case which is vehemently relied upon has been clarified in AP Mahesh
#ChandrababuNaiduArrest
livelaw.in
#ChandrababuNaiduArrest
livelaw.in
@APPOLICE100 Luthra: There is a change in the law, how quash petitions are to be seen. Don't look at just what is sought. Look a little deeper.
#ChandrababuNaiduArrest
#ChandrababuNaiduArrest
@APPOLICE100 Bench: Let me pass an order on the whole. When you have argued the whole case, you can't say pass judgement about one half and not the other half
#ChandrababuNaiduArrest
#ChandrababuNaiduArrest
@APPOLICE100 Bench: Arguments are done by both sides. Now let me take a decision
#ChandrababuNaiduArrest
#ChandrababuNaiduArrest
@APPOLICE100 Luthra: My argument is regarding Section 17A but the question remains what to do with this gentleman? Please consider the Arnab Goswami case
#ChandrababuNaiduArrest
#ChandrababuNaiduArrest
@APPOLICE100 Luthra: 4 things I want to say
a) no answer to Section 17A
b) nature of acts falls within Section 17a
c) none of the judgments relied upon have similarity in facts
d) there is lot of confusion regarding 90% and 10%
#ChandrababuNaiduArrest
a) no answer to Section 17A
b) nature of acts falls within Section 17a
c) none of the judgments relied upon have similarity in facts
d) there is lot of confusion regarding 90% and 10%
#ChandrababuNaiduArrest
@APPOLICE100 Luthra: A lot of material is shown by the other side. Email that they are relying on is in contrast with the remand report
#ChandrababuNaiduArrest
#ChandrababuNaiduArrest
@APPOLICE100 Hearing concludes. Matter reserved for final orders. Judgement in 2 days.
#ChandrababuNaiduArrest
#ChandrababuNaiduArrest
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