Krishna A Shetty vs. State Of Karnataka

WP/20293/2024HC KarnatakaGSTCNR KAHC01042856202414 August 2024Bench: N. V. ANJARIA (CJ),K. V. ARAVIND6 pages

For Petitioner: SRI SRIKANTH V. K., ADVOCATEFor Respondent: SMT. NILOUFER AKBAR, AGA FOR R1 TO 3, 7 & 8

AI SummaryDismissed

Facts

The petitioner, claiming to be the President of the Karkala Parashurama Theme Park Hitarakshana Samiti, filed a Public Interest Litigation (PIL) seeking various directions against government officials and private respondents. The core allegations involved a work order issued on December 15, 2022, to respondent No. 6 for preparing and installing a bronze statue of Parashurama, for which an amount of Rs. 1,21,62,260/- was sanctioned. The petitioner alleged that the statue was made of fiber, not bronze, and that the overall construction of the theme park was of poor quality. Further allegations included GST fraud by respondent No. 6, misuse of funds by respondent No. 4, and illegal money transfer by respondents No. 3 and 4. The petitioner also sought the return of the Parashurama statue to respondent No. 3 and action against authorities for fraudulent fund transfers.

Held

The Court held that it was not inclined to entertain the writ petition. The reasoning was based on the fact that the State Government had already taken steps to investigate the allegations. Specifically, the Court noted that an investigation by the Crime Investigation Department (CID) had been ordered on May 3, 2024, and was pending. Furthermore, an Inquiry Committee, headed by a former Judge, had been constituted to conduct a detailed inquiry into the alleged fraudulent incident of the Parashurama Theme Park. The Court observed that the allegations concerning GST fraud and the payment of GST were already under investigation and were the subject matter of the Inquiry Committee. The Court also found the allegations to be too vague to be entertained in a public interest petition. Consequently, the Court dismissed the petition. The ratio decidendi is that courts should generally refrain from interfering or directing parallel inquiries when a competent authority has already initiated a comprehensive investigation into the matter, especially when the allegations are vague.

Key Issues

1. Whether the Court should entertain a Public Interest Litigation seeking directions for inquiries into alleged GST fraud, misuse of funds, and illegal money transfers, given that the State Government has already initiated investigations and constituted an Inquiry Committee. (Question of law and fact, turning on the principles of judicial intervention in matters under active investigation). Petitioner's contentions: The petitioner sought directions for inquiries into specific allegations of GST fraud, misuse of funds, and illegal money transfers by various respondents, including respondent No. 7 (Assistant Commissioner of Commercial Tax) for GST fraud, respondent No. 1 (State) for misuse of funds by respondent No. 4, and respondent No. 2 (Principal Secretary, Department of Revenue) for illegal money transfers by respondents No. 3 and 4. The petitioner also prayed for the recovery of the Parashurama statue and action against officials. Revenue/State's contentions: The judgment does not record any specific arguments made by the respondents. However, the Court noted that the State Government had ordered an investigation by the CID on May 3, 2024, which was pending, and had also constituted an Inquiry Committee headed by a former Judge to report on the alleged fraudulent incident. The Court observed that these aspects required fact-finding exercises and were too vague for the present petition.

Sections Cited

None explicitly discussed or named in relation to the dismissal, though GST is mentioned in the context of allegations.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

- 1 - NC: 2024:KHC:32718-DB WP No. 20293 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 14TH DAY OF AUGUST, 2024 PRESENT THE HON'BLE MR. N. V. ANJARIA, CHIEF JUSTICE AND THE HON'BLE MR. JUSTICE K. V. ARAVIND WRIT PETITION No. 20293 OF 2024 (GM-RES) BETWEEN: 1. KRISHNA A. SHETTY, AGED ABOUT 30 YEARS, S/O ANANDA SHETTY, BARNANTAL HOUSE, NALLURU VILLAGE, KARKALA TALUK, UDUPI DISTRICT 574122. Ph: 9483360859, PAN No. CUUPS2903L, AADHAR No. 557479356381. …PETITIONER (BY SRI SRIKANTH V. K., ADVOCATE) AND: 1. STATE OF KARNATAKA, REPRESENTED BY ITS ADDITIONAL CHIEF SECRETARY, DEPARTMENT OF KANNADA AND CULTURE, ROOM No.3, GROUND FLOOR, VIKASA SOUDHA, DR. AMBEDKAR VEEDHI, BANGALORE 560 001. 2. PRINCIPAL SECRETARY TO GOVERNMENT, DEPARTMENT OF REVENUE, Digitally signed by VALLI MARIMUTHU Location: High Court of Karnataka - 2 - NC: 2024:KHC:32718-DB WP No. 20293 of 2024 ROOM No. 506, 5TH FLOOR, 3RD GATE, M. S. BUILDING, BANGALORE 01. 3. DEPUTY COMMISSIONER, RAJATADRI, MANIPAL, UDUPI 576104. 4. PROJECT DIRECTOR, UDUPI NIRMITHI KENDRA, ANANTH NAGAR, MANIPAL 576104. 5. V. SUNIL KUMAR, No.1-376/2, “PRERANA”, KALLAMBAADIPADAVU, PALLIRASTE, NITTE VILLAGE, ATTUR POST, KARKALA TALUK, UDUPI DISTRICT 574110. 6. KRISHNA NAYAK, KRISH ART WORLD, No. 330, 60FT ROAD, 5TH BLOCK, NEAR VENKATESHWARA TEMPLE, SIR M VISHWESHWARAYYA LAYOUT, BANGALORE 91. 7. ASSISTANT COMMISSIONER OF COMMERCIAL TAX, KIADB BUILDING, 2ND FLOOR, 4TH PHASE, PEENYA 2ND STAGE, BANGALORE 560 058. 8. CHIEF MINISTER OF KARNATAKA, ROOM No. 323A, 3RD FLOOR, VIDHANA SOUDHA, DR. AMBEDKAR VEEDI, BANGALORE 560 001. …RESPONDENTS (BY SMT. NILOUFER AKBAR, AGA FOR R1 TO 3, 7 & 8) - 3 - NC: 2024:KHC:32718-DB WP No. 20293 of 2024 THIS WRIT PETITION IS FILED AS PUBLIC INTEREST LITIGATION (PIL) UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OF MANDAMUS AGAINST RESPONDENT VIDE ANNEXURE-A AND G DATED 03.05.2024 AND 10.01.2023 BY DIRECTING RESPONDENT No-7, TO CONDUCT ENQUIRY ON GST FRAUD MADE BY RESPONDENT No-6 DIRECTING THE RESPONDENT No-1 TO CONDUCT ENQUIRY ON MISUSE OF FUNDS BY RESPONDENT No-4 AND DIRECTING TO RESPONDENT No-2 TO CONDUCT ENQUIRY ON ILLEGAL MONEY TRANSFER DONE BY RESPONDENT No-3 AND 4 AND DIRECTING RESPONDENT No-3 TO TAKE BACK THE POSSESSION OF PARASHURAMA STATUE WHICH WAS HANDED OVER TO RESPONDENT No-6 AND DIRECTING RESPONDENT No-7 TO TAKE SERIOUS ACTION BY SUSPENDING RESPONDENT No-3 FOR THE FRAUDULENT TRANSFER OF GOVERNMENT FUNDS. THIS WRIT PETITION COMING ON FOR HEARING THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE THE CHIEF JUSTICE MR. JUSTICE N. V. ANJARIA and HON'BLE MR. JUSTICE K. V. ARAVIND

ORAL ORDER

(PER: HON'BLE THE CHIEF JUSTICE MR. JUSTICE N. V. ANJARIA)

Heard learned advocate Mr. V.K. Srikanth for the petitioner.

The petitioner, claiming to be the President of the Karkala Parashurama Theme Park Hitarakshana Samiti, has sought NC: 2024:KHC:32718-DB directions against the respondents in particular, respondent No.7-the Assistant Commissioner of Commercial Tax to conduct inquiry in respect of the alleged fraud of Goods and Service Tax (GST) said to have committed by private respondent No.

Further prayer was made against respondent No.1-State to conduct inquiry with regard to alleged misuse of funds by respondent No.4–the Project Director.

1 It was also prayed to direct respondent No.2-the Principal Secretary, Department of Revenue to conduct inquiry against respondent Nos.3 and 4 in respect of the alleged illegal transfer of money. Still, there was a prayer to direct respondent No.3- the Deputy Commissioner, Udupi, to take back possession of Parashurama statue and take action against the authorities for transfer of government funds.

It was stated that respondent No.6 was given work order on 15.12.2022 for preparing the sculpture of Parashurama in bronze metal and to install the same atop the Umikal Hill at Karkala Taluka, Uudpi. It was stated that respondent No.6 had earlier submitted the bill and before giving quotation and work order, the amount of Rs.1,21,62,260/- was sanctioned. NC: 2024:KHC:32718-DB

1 It was the allegation that when Parashurama statue was installed, it was found that the statue was made of fiber and not with bronze metal. It was alleged that in constructing Parashurama Theme Park work done was very poor.

2 It was the averment by the petitioner himself that the State Government has ordered investigation by referring the case to the Crime Investigation Department (CID) on 03.05.2024. The said investigation is pending. Not only that, subsequently, the State Government has constituted an Inquiry Committee headed by the former Judge Mr. H.N Nagamohandas seeking detailed report in respect of the alleged fraudulent incident of Parashurama Theme Park.

Important documents are sought for by the said Justice Nagamohandas Committee. The Committee is also thus seized with the inquiry in relation to the subject matter.

Thus, the allegation against the alleged GST brought by not paying Rs.7,00,000/- and whether the GST amount is paid or not are the issues already under investigation and subject matter of Inquiry Committee. These aspects necessarily require NC: 2024:KHC:32718-DB a fact finding exercise. Thirdly, they are too vague to be countenanced in the present public interest petition.

For all the aforesaid reasons, the Court is not inclined to entertain this petition.

It is liable to be dismissed. The same stands dismissed. (N. V. ANJARIA) CHIEF JUSTICE (K. V. ARAVIND) JUDGE

VBS List No.: 1 Sl No.: 8

Reproduced from the public record of the Karnataka High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.