Safiya Malik

The High Court of Madras Division Bench of Chief Justice Manindra Mohan Shrivastava and Justice G. Arul Murugan has directed the Central Bureau of Investigation to take over the probe into allegations that forged No Objection Certificates from district authorities were used to secure statutory licences for setting up and operating petroleum retail outlets in the State. Holding that the ongoing State investigation lacked fairness and independence, the Bench ordered transfer of the case papers to the CBI and required the agency to carry out further investigation, including into the role of the beneficiaries of the alleged racket.

The petitioner filed a writ petition under Article 226 of the Constitution seeking a Mandamus to direct the Chief Controller of Explosives and the Joint Chief Controller of Explosives to cancel final explosives licences issued to certain oil marketing companies for operating petroleum retail outlets in Tamil Nadu and Puducherry. It was alleged that the licences were granted on the basis of forged and fabricated No Objection Certificates (NOCs) purportedly issued by district authorities without proper verification. The petitioner further sought initiation of criminal and civil action against the concerned officials and private entities.

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The issue arose during proceedings in a habeas corpus petition where allegations surfaced regarding fabrication of NOCs using fake seals and forged signatures of the Commissioner of Police, Greater Chennai. FIRs were registered in various districts against individuals allegedly involved in preparing fake NOCs. Status reports indicated that multiple charge sheets had been filed and that investigation had been transferred to CBCID considering the magnitude of the alleged racket. The Court examined the scope of investigation, including the role of beneficiaries who had obtained explosive licences using such NOCs.

The Court recorded that “a huge racket was operating in this State. This racket was involved in preparing fake and forged no objection certificates for the purpose of being used for obtaining explosive license.” It further observed that “the persons who were operating the racket (now involved in the case as accused) were in contact with the beneficiaries and had collected huge money from them.”

The Bench stated that “about 90 fake no objection certificate cases have been unearthed during investigation already carried out by the investigating agency.” However, it noted concern that “while taking action against those who were issuing no objection certificate, the investigating authorities have not conducted proper investigation with regard to the role of those persons, for whose benefit and after taking huge money from them, the entire racket for preparing fake no objection certificate was operating in the State.”

The Court observed, “Bare facts which are revealed from the materials produced before us actually show that these beneficiaries were in direct connect with the fake no objection certificate racket and they were directly meeting them and paying them huge amounts.” It also recorded, “We are at a complete loss as to how such no objection certificate could be issued when no such inspection had ever been conducted by the responsible authorities or their authorised officers.”

Regarding the investigation, the Court stated, “We have no hesitation in saying that the manner in which the investigation has been held or any further investigation that is going on, is not in proper direction and the investigating agency has registered offences only against those who are involved in preparing fake no objection certificates.”

It observed: “Though ordinarily, this Court would be slow in directing handing over of investigation to any other agency, however, in the present case, as our orders would go to show, in the past, despite our repeated orders, the agency is not holding investigation in proper direction and till date, it claims to be clueless and at the same time ignorant of the role played by various persons including the beneficiaries, in the matter. We are therefore constrained to draw an inference that the investigation is not fair and independent. In a situation like this, this Court has ample powers to hand over investigation to some other investigating agency.”

Referring to the power of constitutional courts, it recorded from precedent that “exercise of such power by the constitutional courts would not violate the doctrine of separation of powers.” It also noted that “such an order is not to be passed as a matter of routine or merely because a party has levelled some allegations against the local police.”

The Court ordered that “we are inclined to hand over the investigation of this case to the Central Bureau of Investigation (CBI). The Additional Director General of Police, CBCID, shall handover the entire papers relating to investigation conducted so far to the appropriate authority as may be deputed by the Director, CBI, New Delhi.”

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The Court further directed that “Mr.V.T.Balaji, learned counsel for Union of India, is present in the Court. He is directed to communicate a copy of this order to the Director, CBI for taking necessary steps and for conduct of investigation by CBI and submission of further investigation report in the concerned Courts, if any other persons are found to be involved in commission of offence, along with, and in conspiracy with the accused who have already been involved, with those who are alleged to have prepared forged and fake no objection certificates. The writ petition stands disposed of. There shall be no order as to costs. Consequently, WMP Nos.19329 of 2023, 47801 of 2025, 3768 of 2026 are closed.”

Advocates Representing the Parties

For the Petitioners: Mr. V.B.R. Menon, Petitioner-in-person

For the Respondents: Mr. V.T. Balaji; Mr. Vijay Meghanath; Mr. E. Raj Thilak, Additional Public Prosecutor; Mr. M. Vijayan for M/s King & Partridge

Case Title: V.B.R. Menon v. Chief Controller of Explosives & Others
Case Number: WP No.19983 of 2023
Bench: Chief Justice Manindra Mohan Shrivastava, Justice G. Arul Murugan