SOCIO-ECONOMIC OFFENCES NOTES

Hoarding and Profiteering

a. Laws Relating to Maintenance of Essential Supplies
Introduction: Hoarding and profiteering are practices where
individuals or entities stockpile essential goods to create artificial
shortages or inflate prices to exploit consumers. To combat these
issues, India has enacted several laws designed to regulate the
distribution, pricing, and availability of essential commodities.
1. Essential Commodities Act, 1955
Objective and Purpose: The Essential Commodities Act, 1955, is
aimed at ensuring the smooth distribution and supply of essential
commodities. This Act provides the central government with the
authority to regulate the production, supply, and distribution of
essential goods to prevent shortages and ensure availability.
Key Provisions:
 Definition of Essential Commodities (Section 2):
o The Act empowers the central government to declare any
commodity as essential. Essential commodities typically
include food grains, edible oils, sugar, kerosene, and
medicines.
o Notification: The government notifies commodities
deemed essential through official gazettes.
 Control Orders (Section 3):
o Regulation: The government can issue control orders to
regulate the production, supply, and distribution of
essential commodities. These orders can control prices,
 regulate the quantity in which goods are sold, and prevent
hoarding.
o License Requirements: Sellers and distributors may need
licenses to trade in essential commodities under control
orders.
 Powers of Authorities (Section 6):
o Inspection: Authorities are empowered to inspect
premises and seize essential commodities if they suspect
violations of control orders.
o Seizure and Confiscation: Goods can be seized if they are
found to be hoarded or if the trader is found guilty of
black marketing.
 Penalties (Section 7):
o Fines and Imprisonment: Violations of the Act, such as
hoarding or black marketing, can result in substantial fines
and imprisonment. Penalties vary based on the severity of
the offense.
Case Law:
 Rameshwar Prasad v. State of Bihar (2001):
o Facts: The case involved the illegal stockpiling of essential
commodities.
o Decision: The Supreme Court emphasized that the
Essential Commodities Act is a preventive measure
designed to ensure that essential goods are available to
the public at fair prices. It reinforced the need for strict
enforcement to prevent hoarding and profiteering.
Enforcement and Impact:
  Implementation: The Act is implemented through state
governments, which establish enforcement agencies to ensure
compliance.
 Challenges: Despite its provisions, challenges such as
insufficient enforcement, corruption, and logistical issues can
undermine its effectiveness.
2. Prevention of Blackmarketing and Maintenance of Supplies
of Essential Commodities Act, 1980
Objective and Purpose: This Act specifically addresses black
marketing, which involves selling essential commodities at higher-
than-controlled prices, and aims to maintain the continuous supply
of essential goods.
Key Provisions:
 Definition of Black Marketing (Section 2):
o Black Marketing: The Act defines black marketing as the
sale of essential commodities at prices higher than those
set by control orders or creating artificial shortages
through hoarding.
 Powers to Authorities (Section 3):
o Arrest and Seizure: Authorities have the power to arrest
individuals involved in black marketing and to seize goods
suspected of being hoarded.
o Special Courts: The Act provides for the establishment of
special courts to expedite trials related to black marketing
offenses.
 Penalties (Section 4):
 o Heavy Fines and Imprisonment: Offenders can face
severe penalties, including heavy fines and long-term
imprisonment, aimed at deterring black marketing.
Case Law:
 M. D. M. S. N. Manpower Services Pvt. Ltd. v. Union of India
(1988):
o Facts: This case dealt with black marketing practices and
the enforcement of related provisions.
o Decision: The court upheld the stringent penalties
prescribed under the Act and highlighted the necessity of
robust enforcement to prevent black marketing.
Enforcement and Impact:
 Implementation: The Act is enforced by state and central
government agencies, with a focus on curbing black marketing
and ensuring the availability of essential goods.
 Challenges: Effective enforcement can be hindered by systemic
issues, including corruption and inadequate infrastructure.
Conclusion: The Essential Commodities Act, 1955, and the
Prevention of Blackmarketing and Maintenance of Supplies of
Essential Commodities Act, 1980, provide a comprehensive
framework for regulating the supply and distribution of essential
goods. While these laws are crucial in preventing hoarding and
profiteering, their effectiveness relies on diligent enforcement and
addressing systemic challenges.

b. Laws on Maintenance of Standards of Weights and

Measures
Introduction: Accurate measurement of goods is vital for fair
trade and consumer protection. Laws regulating weights and
measures ensure that transactions are conducted based on
standardized and accurate measurements, preventing fraud and
ensuring fairness in commerce.
1. Legal Metrology Act, 2009
Objective and Purpose: The Legal Metrology Act, 2009,
provides a framework for the regulation of weights and measures in
commercial transactions. It aims to ensure that measurements are
accurate and comply with legal standards to protect consumer
interests and promote fair trade.
Key Provisions:
 Definition and Scope (Section 2):
o Definitions: The Act defines terms related to weights,
measures, and measuring instruments. It covers all
commercial transactions involving weights and measures.
o Scope: Applies to manufacturers, traders, and users of
weights and measures, including those involved in trade
and commerce.
 Standards and Specifications (Section 3):
o Standards: The Act mandates that weights and measures
conform to prescribed standards and specifications set by
the Bureau of Indian Standards (BIS) or other relevant
authorities.
o Certification: Instruments used for commercial
transactions must be tested and certified by authorized
agencies to ensure accuracy.
 Registration and Licensing (Section 7):
o Registration: Traders and manufacturers of weighing and
measuring instruments must register with the authorities.
 o Licensing: Licensing is required for those involved in the
manufacture, repair, and sale of weights and measures.
 Inspections and Enforcement (Section 16):
o Inspection: Authorized officers can inspect weights and
measures, conduct tests, and seize non-compliant
instruments.
o Enforcement: The Act provides for penalties and
corrective actions to ensure compliance with legal
standards.
 Penalties (Section 27):
o Fines and Imprisonment: Offenses under the Act, such as
using inaccurate measuring instruments or failing to
obtain a license, are punishable by fines and
imprisonment.
Case Law:
 State of Rajasthan v. Harish Chandra (2017):
o Facts: The case involved the use of inaccurate weights in
trade transactions.
o Decision: The Supreme Court reinforced the necessity of
adhering to the standards set by the Legal Metrology Act.
The court emphasized that accurate measurements are
crucial for maintaining trust in trade practices.
Enforcement and Impact:
 Implementation: The Act is implemented through state and
central government agencies, which are responsible for
inspections, certifications, and enforcement.
  Challenges: Effective enforcement can be challenging due to
issues such as inadequate infrastructure and resistance from
non-compliant traders.

WHAT ARE THE POWERS OF LEGAL METROLOGY OFFICER

A Legal Metrology Officer (LMO) is responsible for enforcing the
provisions of the Legal Metrology Act, 2009, which regulates weights
and measures and ensures fair trade practices. Their powers are
crucial in maintaining consumer protection and preventing
fraudulent activities in trade and commerce. Below are the key
powers and responsibilities of a Legal Metrology Officer:

1. Inspection and Verification

 Inspect Premises: LMOs have the authority to inspect any
premises, shop, or establishment where weights, measures, or
packaged commodities are used or sold.
 Verify Standards: Ensure that weighing and measuring
instruments conform to the prescribed standards under the Act.
 Seizure of Non-compliant Goods: Seize defective or non-
standard weights, measures, or commodities that do not
comply with legal requirements.

2. Registration and Licensing

 Grant Licenses: Issue licenses for manufacturers, dealers, or
repairers of weights and measures.
 Renew or Cancel Licenses: Renew or cancel licenses if the
licensee violates the provisions of the Act.
 3. Enforcement and Regulation
 Conduct Surprise Checks: Conduct surprise inspections to
detect malpractices such as short-weighing or under-
measuring.
 Test Packaged Commodities: Verify that packaged goods meet
labeling requirements like Maximum Retail Price (MRP), weight,
manufacturing date, etc.
 Monitor Trade Practices: Ensure fair trade practices in markets,
factories, and transportation sectors.

4. Prosecution Powers
 File Complaints: Initiate legal proceedings against violators of
the Act and associated rules.
 Issue Notices: Serve notices to offenders and ensure
compliance with legal metrology laws.
 Levy Fines and Penalties: Impose fines or penalties on
individuals or organizations found guilty of violations.

5. Consumer Protection
 Redress Consumer Complaints: Address complaints from
consumers regarding fraudulent trade practices involving
weights, measures, or packaged goods.
 Promote Awareness: Educate consumers and traders about the
provisions of the Act and the importance of accurate weights
and measures.

6. Sealing and Stamping

 Seal Instruments: Stamp or seal weights and measures after
they pass verification tests.
 Seize Faulty Instruments: Seize or detain weighing or
measuring instruments that are inaccurate or do not comply
with legal standards.

7. Maintenance of Records
 Maintain Inspection Reports: Keep records of inspections,
verifications, and offenses detected.
 Submit Periodic Reports: Submit regular reports to higher
authorities regarding enforcement activities.

Legal Provisions Empowering LMOs

 Legal Metrology Act, 2009: Governs the powers and duties of
LMOs.
 Legal Metrology (Packaged Commodities) Rules, 2011: Sets
guidelines for labeling, quantity declarations, and standards for
packaged goods.
 Penal Powers: Section 36 of the Legal Metrology Act authorizes
LMOs to impose penalties for non-compliance.

Important Case Laws and Precedents

1. State of Maharashtra v. Natwarlal Damodar Das (1979):
Established the importance of fair trade practices and the role
of enforcement officers.

UNIT-2
 Adulteration
Adulteration refers to the contamination or tampering with
food or drugs, resulting in compromised quality and safety. To
address issues of adulteration, India has enacted several laws aimed
at preventing food adulteration and controlling the distribution of
spurious drugs.

a. Prevention of Food Adulteration

Introduction: Food adulteration involves the addition of inferior
or harmful substances to food products, leading to health risks and
unfair practices. The Prevention of Food Adulteration Act, 1954 (PFA
Act) was established to regulate the quality and purity of food items.
Key Legislation:
1. Prevention of Food Adulteration Act, 1954
Objective and Purpose: The PFA Act aims to prevent
adulteration of food and ensure the safety and quality of food
products available to consumers.
Key Provisions:
o Definition of Adulteration (Section 2):
 Adulterated Food: The Act defines adulterated food
as any food that is, in any way, contaminated,
degraded, or mixed with inferior substances,
affecting its quality and safety.
o Standards and Specifications (Section 3):
 Quality Standards: The Act mandates the
establishment of standards and specifications for
 food products to ensure they meet the required
quality and purity levels.
 Regulations: The central government can set
regulations concerning the standards for various
food items.
o Licensing and Registration (Section 7):
 Manufacturers and Sellers: All food manufacturers
and sellers must obtain licenses and registrations to
ensure compliance with the Act’s provisions.
o Inspection and Enforcement (Section 10):
 Inspection: Authorized officers are empowered to
inspect food premises, collect samples, and test for
adulteration.
 Seizure and Prosecution: If adulteration is detected,
the authorities can seize the adulterated food and
prosecute the offenders.
o Penalties (Section 16):
 Fines and Imprisonment: Offenses under the Act,
including selling adulterated food, can result in fines
and imprisonment. Penalties vary depending on the
severity of the offense.
Case Law:
o K. K. Bhatia v. State of Haryana (1979):
 Facts: The case involved the sale of food that was
found to be adulterated.
 Decision: The Supreme Court upheld the provisions
of the PFA Act, emphasizing that the sale of
adulterated food undermines public health and
 safety. The Court supported stringent penalties to
deter such practices.
Enforcement and Impact:
o Implementation: The PFA Act is implemented through
state and central food safety authorities, which conduct
inspections and enforce compliance.
o Challenges: Challenges include inadequate infrastructure
for testing, corruption, and lack of awareness among
consumers.
**2. Food Safety and Standards Act, 2006
Objective and Purpose: This Act replaced the PFA Act and aims
to establish a single reference point for all food regulations. It seeks
to enhance food safety and hygiene standards.
Key Provisions:
 Food Safety Standards (Section 18):
o Regulations: The Act establishes the Food Safety and
Standards Authority of India (FSSAI), which sets standards
for food safety and hygiene.
 Licensing and Registration (Section 31):
o Mandatory Registration: All food businesses must obtain
a license or registration from the FSSAI to ensure
compliance with safety standards.
 Inspection and Enforcement (Section 38):
o Powers of Inspectors: Inspectors have the authority to
inspect food premises, collect samples, and take
enforcement actions against violations.
 Penalties (Section 59):
 o Fines and Imprisonment: The Act prescribes penalties for
violations, including fines and imprisonment, to address
issues of adulteration and non-compliance.
Case Law:
 S. P. Verma v. Union of India (2010):
o Facts: The case involved a challenge to the standards set
under the Food Safety and Standards Act.
o Decision: The court upheld the Act’s provisions,
recognizing its role in regulating food safety and
preventing adulteration.
Enforcement and Impact:
 Implementation: The FSSAI oversees the implementation of
food safety standards, conducts inspections, and enforces
compliance.
 Challenges: Despite improvements, challenges remain in terms
of effective implementation and addressing emerging food
safety issues.
Conclusion: The Prevention of Food Adulteration Act, 1954, and
the Food Safety and Standards Act, 2006, provide a framework for
regulating food quality and safety. While the PFA Act was
foundational, the Food Safety and Standards Act represents a more
comprehensive approach to managing food safety and addressing
adulteration.

b. Control of Spurious Drugs

Introduction: Spurious drugs are counterfeit or substandard
drugs that can cause harm to consumers. To combat this issue, India
has enacted laws to regulate drug quality and control the distribution
of spurious drugs.
 Key Legislation:
1. Drugs and Cosmetics Act, 1940
Objective and Purpose: The Drugs and Cosmetics Act, 1940,
regulates the manufacture, sale, and distribution of drugs and
cosmetics. It aims to ensure that drugs are safe, effective, and of
good quality.
Key Provisions:
o Definition of Spurious Drugs (Section 17):
 Spurious Drugs: The Act defines spurious drugs as
those that are counterfeit, misbranded, or
adulterated. It includes drugs that are not genuine
or fail to meet the prescribed standards.
o Licensing and Registration (Section 18):
 Manufacturers and Sellers: Manufacturers and
sellers of drugs must obtain licenses and
registrations to ensure compliance with the Act’s
standards.
o Inspection and Enforcement (Section 22):
 Inspection: Inspectors have the authority to inspect
drug manufacturing facilities, collect samples, and
check for compliance with safety standards.
 Seizure and Prosecution: Spurious drugs can be
seized, and offenders can be prosecuted under the
Act.
o Penalties (Section 27):
 Fines and Imprisonment: The Act prescribes
penalties for offenses related to spurious drugs,
including fines and imprisonment.
 Case Law:
o K. K. Sharma v. Union of India (2002):
 Facts: The case involved the manufacture and sale of
spurious drugs.
 Decision: The Supreme Court upheld the strict
enforcement of the Drugs and Cosmetics Act,
highlighting the importance of regulating drug
quality to protect public health.
Enforcement and Impact:
o Implementation: The Act is enforced by the Central Drugs
Standard Control Organization (CDSCO) and state drug
control authorities.
o Challenges: Issues include detecting counterfeit drugs,
ensuring compliance, and addressing corruption.
2. Drugs and Magic Remedies (Objectionable Advertisements)
Act, 1954
Objective and Purpose: This Act regulates the advertisement of
drugs and remedies to prevent misleading claims and protect
consumers from spurious and fraudulent products.
Key Provisions:
o Prohibition of Misleading Advertisements (Section 3):
 Advertisements: The Act prohibits advertisements
that make false claims about the efficacy of drugs or
remedies.
o Regulation of Claims (Section 4):
 Restrictions: The Act restricts the claims that can be
made in drug advertisements to prevent misleading
information.
 Case Law:
o D. P. Bhardwaj v. Union of India (1990):
 Facts: The case involved misleading advertisements
of drugs.
 Decision: The court emphasized the importance of
regulating drug advertisements to prevent consumer
deception and protect public health.
Enforcement and Impact:
o Implementation: The Act is enforced by the Ministry of
Health and Family Welfare and state authorities.
o Challenges: Effective enforcement requires vigilance and
coordination between regulatory bodies.
Conclusion: The Drugs and Cosmetics Act, 1940, and the Drugs
and Magic Remedies (Objectionable Advertisements) Act, 1954, play
crucial roles in controlling spurious drugs and misleading
advertisements. These laws aim to ensure drug quality, safety, and
effective regulation to protect consumers and maintain public health.

UNIT-3
Corruption
Corruption involves the abuse of power or position for personal
gain, leading to a breach of trust and ethical standards. It undermines
institutions, hampers economic development, and affects societal
well-being. In India, various laws and practices address corruption,
focusing on both preventive measures and punitive actions.
 a. Practice and Dimensions of Corruption
Introduction: Corruption can manifest in numerous forms,
including bribery, nepotism, embezzlement, and misuse of power. It
affects both public and private sectors and can severely impact
governance, economic stability, and public trust.
Key Dimensions of Corruption:
1. Bribery:
o Definition: The act of offering, giving, receiving, or
soliciting something of value to influence actions or
decisions.
o Forms: Can involve cash payments, gifts, or favors.
o Impact: Distorts fair decision-making processes, leading to
unfair advantages and loss of integrity.
2. Nepotism and Favoritism:
o Definition: Favoring relatives or friends in hiring or
awarding contracts, irrespective of merit.
o Forms: Appointing family members to positions of power
or awarding contracts to favored companies.
o Impact: Undermines meritocracy and can lead to
inefficiency and resentment among qualified individuals.
3. Embezzlement:
o Definition: The theft or misappropriation of funds
entrusted to someone’s care.
o Forms: Misusing public funds, siphoning off resources, or
fraudulent financial reporting.
 o Impact: Results in financial losses and undermines trust in
financial management systems.
4. Extortion:
o Definition: Coercing someone to provide money, goods,
or services through threats or misuse of authority.
o Forms: Threats of harm or legal consequences to obtain
bribes or favorable treatment.
o Impact: Creates a climate of fear and forces individuals or
businesses into corrupt practices.
5. Fraud:
o Definition: Deliberate deception to secure unfair or
unlawful gain.
o Forms: Falsifying documents, inflating costs, or
misrepresenting information.
o Impact: Leads to financial losses and undermines the
credibility of institutions.
Impact of Corruption:
 Economic Consequences:
o Distortion of Markets: Corruption distorts market
competition by favoring corrupt entities.
o Investment Deterrence: Reduces foreign and domestic
investment due to increased risk and uncertainty.
o Inefficiency: Leads to misallocation of resources and
reduced productivity.
 Governance Consequences:
o Erosion of Trust: Diminishes public confidence in
government and institutions.
 o Ineffective Public Services: Results in poor quality of
public services and infrastructure.
 Social Consequences:
o Inequality: Exacerbates social inequality by favoring the
privileged few.
o Public Health and Safety: Neglect of essential services
and regulations, affecting health and safety standards.
Addressing Corruption:
 Transparency Measures: Implementing transparent processes
and auditing systems.
 Public Awareness: Educating citizens about the effects of
corruption and encouraging reporting.
 Institutional Reforms: Strengthening institutions to ensure
accountability and reduce opportunities for corruption.

b. Anti-Corruption Laws
Introduction: India has enacted several anti-corruption laws to
address and mitigate corruption. These laws provide mechanisms for
investigation, prosecution, and punishment of corrupt practices.
Key Anti-Corruption Laws:
1. Prevention of Corruption Act, 1988
Objective and Purpose: The Prevention of Corruption Act,
1988, aims to combat corruption in the public sector by criminalizing
various forms of corrupt activities and providing a framework for
prosecution.
Key Provisions:
o Definition of Corruption (Section 7-13):
  Bribery of Public Servants (Section 7): Criminalizes
the act of accepting or soliciting bribes by public
servants.
 Bribery of Public Servants by Private Persons
(Section 8): Criminalizes offering bribes to public
servants by individuals or entities.
 Abuse of Position (Section 13): Punishes public
servants who misuse their position to obtain undue
advantages.
o Penalties (Section 13):
 Fines and Imprisonment: Prescribes penalties for
various offenses, including imprisonment and fines.
 Forfeiture of Property: Allows for the forfeiture of
assets obtained through corrupt practices.
o Investigation and Prosecution (Section 17-19):
 Special Courts: Establishes special courts to handle
corruption cases and expedite trials.
 CVC and CBI: Empowers the Central Vigilance
Commission (CVC) and Central Bureau of
Investigation (CBI) to investigate and prosecute
corruption cases.
Case Law:
o State of Karnataka v. A. B. Shivakumar (2015):
 Facts: The case involved allegations of bribery
against a public servant.
 Decision: The Supreme Court upheld the provisions
of the Prevention of Corruption Act, emphasizing the
 importance of addressing corruption to uphold
public trust and integrity.
Enforcement and Impact:
o Implementation: The Act is enforced by various agencies,
including the CBI and state anti-corruption bureaus.
o Challenges: Challenges include inadequate resources,
delays in the judicial process, and political interference.
2. The Lokpal and Lokayuktas Act, 2013
Objective and Purpose: The Lokpal and Lokayuktas Act, 2013,
establishes the Lokpal (ombudsman) at the central level and
Lokayuktas at the state level to investigate and address corruption
complaints against public officials.
Key Provisions:
o Establishment of Lokpal (Section 3):
 Composition: The Lokpal consists of a Chair-person
and members appointed by a selection committee
consists of PM OF INDIA, SPEAKER OF LOK SABHA OR
CJI OF SUPREME COURT OR EMINENT JURIST OR
 Chair-person of Lokpal must be former CJI or judge
of sc or any eminent person with impeccable
integrity and possess a min of 25 yrs in matters
related to anti-corruption policy
 Powers: The Lokpal has the authority to investigate
and prosecute corruption cases involving public
officials.
o Complaints and Investigation (Section 12-15):
 Filing Complaints: Citizens can file complaints
against public officials with the Lokpal.
  Investigation: The Lokpal is empowered to conduct
investigations and recommend actions against
corrupt officials.
o Penalties (Section 24-25):
 Penalties for False Complaints: Prescribes penalties
for filing false complaints against public officials.
Case Law:
o Shanti Bhushan v. Union of India (2011):
 Facts: The case challenged the effectiveness of anti-
corruption measures, leading to discussions on the
need for a Lokpal.
 Decision: The Supreme Court supported the
establishment of a Lokpal to address corruption and
enhance accountability.
Enforcement and Impact:
o Implementation: The Lokpal is responsible for
investigating high-profile corruption cases and ensuring
accountability.
o Challenges: Issues include the need for adequate funding,
the effective functioning of the Lokpal, and overcoming
political resistance.
3. Whistle Blowers Protection Act, 2014
Objective and Purpose: The Whistle Blowers Protection Act,
2014, provides protection to individuals who expose corruption or
wrongdoing within public institutions.
Key Provisions:
o Protection for Whistle Blowers (Section 4-6):
  Anonymity: Ensures the anonymity and protection
of whistle blowers from retaliation or harm.
 Investigation: Establishes a mechanism for
investigating disclosures made by whistle blowers.
o Penalties (Section 10):
 Penalties for Retaliation: Prescribes penalties for
retaliating against whistle blowers, including fines
and imprisonment.
Case Law:
o N. S. K. Reddy v. Union of India (2020):
 Facts: The case involved a whistle blower seeking
protection under the Act.
 Decision: The court affirmed the need for robust
protection mechanisms for whistle blowers to
encourage reporting of corruption.
Enforcement and Impact:
o Implementation: The Act is enforced by the Central
Vigilance Commission (CVC) and other relevant agencies.
o Challenges: Challenges include ensuring effective
protection for whistle blowers and addressing systemic
issues in reporting mechanisms.
 UNIT-4
Investigation and Prosecution
In India, various agencies and organizations are tasked with
investigating and prosecuting corruption and criminal offenses. These
bodies play crucial roles in maintaining law and order, ensuring
accountability, and upholding justice.

a. Central Vigilance Commission (CVC)

Introduction: The Central Vigilance Commission (CVC) is an apex
governmental body established to address issues of corruption and
oversee the vigilance administration within the central government.
It was constituted under the Central Vigilance Commission Act, 2003.
Key Provisions:
 Establishment (Section 3):
o Composition: The CVC comprises a Chief Vigilance
Commissioner (CVC) and two Vigilance Commissioners.
o The chair-person and the members should wither have
held civil post in the union or a position in the goverment
o They are appointed by the President of India based on the
recommendations by three members of a selection
committee i.e PM, MINISTER OF HOME AFFAIRS, LEADER
OF OPPOSITION IN LOK SABHA.
 Functions and Powers:
o Supervision and Guidance: The CVC supervises and
provides guidance to various vigilance agencies and
departments of the central government, ensuring
effective implementation of anti-corruption measures.
 o Investigation of Complaints: It investigates complaints of
corruption and misconduct against public servants and
recommends actions for disciplinary proceedings.
o Advisory Role: The CVC advises the government on issues
related to vigilance, corruption prevention, and
administrative reforms.
 Powers and Authority:
o Inquiry and Investigation: The CVC has the authority to
direct investigations and inquire into allegations of
corruption against senior public officials.
o Recommendations: It makes recommendations for
preventive measures, disciplinary actions, and systemic
reforms to address corruption.
Case Law:
 Union of India v. CVC (2014):
o Facts: The case involved a challenge to the CVC's
recommendations on disciplinary actions against certain
officials.
o Decision: The Supreme Court upheld the CVC's authority,
affirming its role in overseeing vigilance and
recommending actions against corrupt practices.
Enforcement and Impact:
 Implementation: The CVC’s recommendations are
implemented by respective departments and agencies, which
are required to take appropriate actions.
 Challenges: Challenges include limited powers in prosecuting
cases directly and ensuring compliance with its
recommendations across various government departments.
b. Central Bureau of Investigation (CBI)
Introduction: The Central Bureau of Investigation (CBI) is India’s
premier investigative agency responsible for investigating complex
and high-profile criminal cases, including corruption, economic
offenses, and organized crime. It operates under the Ministry of
Personnel, Public Grievances, and Pensions.
What Type of Cases are Handled by the CBI?
Anti-Corruption Crimes - for investigation of cases under the
Prevention of Corruption Act against Public officials and the
employees of Central Government, Public Sector Undertakings,
Corporations or Bodies owned or controlled by the Government of
India.
Economic Crimes - for investigation of major financial scams and
serious economic frauds, including crimes relating to Fake Indian
Currency Notes, Bank Frauds and Cyber Crime, bank frauds, Import
Export & Foreign Exchange violations, large-scale smuggling of
narcotics, antiques, cultural property and smuggling of other
contraband items etc.
Special Crimes - for investigation of serious and organized crime
under the Indian Penal Code and other laws on the requests of State
Governments or on the orders of the Supreme Court and High Courts
- such as cases of terrorism, bomb blasts, kidnapping for ransom and
crimes committed by the mafia/the underworld.
Suo Moto Cases - CBI can suo-moto take up investigation of offences
only in the Union Territories.
The Central Government can authorize CBI to investigate a crime in a
State but only with the consent of the concerned State Government.
The Supreme Court and High Courts, however, can order CBI to
investigate a crime anywhere in the country without the consent of
the State.

How is the Director of CBI Appointed?

Director, CBI as Inspector General of Police, Delhi Special Police
Establishment, is responsible for the administration of the
organisation.
Till 2014, the CBI Director was appointed on the basis of the DSPE
Act, 1946.
In 2003, DSPE Act was revised on Supreme Court’s recommendation
in the Vineet Narain case.
A committee that had members from Central Vigilance Commission,
Secretaries from Home Ministry, Ministry of Personnel and Public
Grievances would send recommendations to Central Government for
the appointment of CBI Director.
In 2014, the Lokpal Act provided a committee for appointment of
CBI Director:
Headed by Prime Minister
Other members - Leader of Opposition/ Leader of the single largest
opposition party, Chief Justice of India/ a Supreme Court Judge.
Home Ministry sends a list of eligible candidates to DoPT. Then, the
DoPT prepares the final list on basis of seniority, integrity, and
experience in the investigation of anti-corruption cases, and sends it
to the committee.
Director of CBI has been provided security of two-year tenure, by the
CVC Act, 2003.
In November 2021, the President promulgated two ordinances to
allow the Centre to extend the tenures of the directors of the CBI and
the Enforcement Directorate from two years to up to five years.

Key Provisions:
 Establishment (Section 2A of the Delhi Special Police
Establishment Act, 1946):
o Jurisdiction: The CBI was established to investigate
offenses under central laws and has jurisdiction across
India.
 Functions and Powers:
o Investigative Authority: The CBI investigates cases of
corruption, fraud, organized crime, and other significant
offenses. It has the power to conduct raids, gather
evidence, and arrest suspects.
o Coordination: It coordinates with state police forces and
other agencies to handle complex investigations and
ensure justice.
 Legal Framework:
o Delhi Special Police Establishment Act, 1946: Provides
the legal basis for the establishment and functioning of
the CBI, including its powers and jurisdiction.
o Prevention of Corruption Act, 1988: Empowers the CBI to
investigate cases of corruption and misconduct among
public officials.
Case Law:
 Vineet Narain v. Union of India (1997):
 o Facts: The case involved the investigation of corruption
allegations against high-ranking officials.
o Decision: The Supreme Court directed the CBI to follow
specific procedures for investigating corruption cases,
ensuring transparency and accountability.
Enforcement and Impact:
 Implementation: The CBI conducts investigations, files charges,
and prosecutes offenders in special courts. It works closely with
other law enforcement agencies to tackle crime and corruption.
 Challenges: Challenges include political interference, resource
constraints, and ensuring impartial investigations.

c. Criminal Investigation Department (CID)

Introduction: The Criminal Investigation Department (CID) is a state-
level police agency responsible for investigating serious crimes,
including organized crime, murder, and corruption, within individual
states. The CID operates under the jurisdiction of state police
departments.
Key Provisions:
 Establishment and Jurisdiction:
o State Responsibility: Each state in India has its own CID,
which operates under the state police and is tasked with
handling complex and high-profile criminal investigations.
 Functions and Powers:
o Investigation: The CID investigates serious crimes, gathers
evidence, and provides assistance in solving complex
cases.
 o Coordination: It works with other state and central
agencies to address criminal activities and ensure effective
law enforcement.
 Legal Framework:
o State Laws: The CID operates under various state laws and
regulations governing police powers and investigation
procedures.
Case Law:
 State of Andhra Pradesh v. Ch. Vidya Sagar Rao (2008):
o Facts: The case involved the CID’s role in investigating a
high-profile murder case.
o Decision: The Supreme Court affirmed the CID’s authority
to conduct investigations and emphasized the importance
of its role in handling serious crimes.
Enforcement and Impact:
 Implementation: The CID’s investigations lead to the
prosecution of criminals and the maintenance of law and order
within states. It collaborates with other agencies for
comprehensive crime management.
 Challenges: Challenges include resource limitations,
coordination with central agencies, and ensuring impartial
investigations.

d. Other Organizations
Introduction: In addition to the CVC, CBI, and CID, several other
organizations and agencies play roles in investigation and prosecution
related to specific types of offenses, including financial crimes,
terrorism, and organized crime.
Key Organizations:
1. Enforcement Directorate (ED):
o Function: Investigates economic offenses, including
money laundering, under the Prevention of Money
Laundering Act, 2002.
o Powers: Can attach assets, conduct searches, and
prosecute financial crimes.
2. National Investigation Agency (NIA):
o Function: Investigates and prosecutes terrorism-related
offenses and national security threats under the National
Investigation Agency Act, 2008.
o Powers: Has jurisdiction across India to handle terrorism
cases, including gathering evidence and conducting raids.
3. Financial Intelligence Unit (FIU-IND):
o Function: Monitors and analyzes financial transactions to
detect and prevent money laundering and terrorist
financing under the Prevention of Money Laundering Act,
2002.
o Powers: Can request information from financial
institutions and coordinate with law enforcement
agencies.
Case Law:
 National Investigation Agency v. Zahoor Ahmad Shah Watali
(2019):
o Facts: The case involved the NIA’s investigation of
terrorism financing and related activities.
 o Decision: The Supreme Court upheld the NIA’s authority
to investigate and prosecute terrorism-related offenses,
reinforcing its role in national security.
Enforcement and Impact:
 Implementation: These organizations work under their
respective legal frameworks to investigate specific types of
offenses, ensuring specialized handling and effective
enforcement.
 Challenges: Challenges include jurisdictional issues,
coordination among agencies, and addressing evolving crime
patterns.