Madras High Court orders CBI probe into fake NOC racket behind petrol pump licences in TN

The Madras High Court has ordered a probe by the Central Bureau of Investigation (CbI) into a large racket involving forged No Objection Certificates (NOCs) used to obtain explosive licences for petroleum retail outlets across Tamil Nadu [VBR Menon Vs Chief Controller of Explosives]..A Division Bench of Chief Justice Manindra Mohan Shrivastava and Justice G Arul Murugan said the investigation conducted so far by Crime Branch of Tamil Nadu Police lacked credibility, making it necessary for an independent agency to step in."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," the Court said..The issue first surfaced during the hearing of a habeas corpus case when the Court was informed that fake NOCs bearing forged signatures and seals of authorities were being used to obtain licences for petrol, LPG and CNG.The State Police subsequently registered FIRs after complaints that fake NOCs were circulating to help applicants obtain explosive licences and establish fuel outlets.During the proceedings, authorities informed the Court that several licences issued on the basis of fake NOCs had been cancelled and criminal cases have been registered against those allegedly involved in fabrication.Investigation indicated the existence of a racket preparing forged NOCs in exchange for money and providing them to persons seeking to establish petroleum retail outlets. The Court recorded that nearly 90 fake NOC cases were unearthed during investigation..The Bench also noted that while criminal cases had been registered against those preparing fake certificates, the role of beneficiaries who allegedly used the forged NOCs had not been adequately examined."What disturbs us is that the investigating authorities have not conducted proper investigation with regard to the role of those persons, for whose benefit the entire racket was operating,” the Court said..The Court further noted that material produced before the Court indicated 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..The Bench asked how such certificates could have been accepted without inspection by competent authorities.“We are at a complete loss as to how such no objection certificate could be issued when no such inspection had ever been conducted.”.After granting multiple opportunities to the authorities to improve the probe, the Bench concluded that a deeper and fair investigation was necessary..Hence, the Court ordered that the case be handed over to the CBI and directed Crime Branch of State Police to transfer all records to the central agency for further investigation..The petitioner VBR Menon appeared in-person.The Union authorities were represented by advocate VT Balaji.The oil companies were represented by advocate Vijay Meghanath.The police authorities were represented by Additional Public Prosecutor ER Raj Thilak..[Read Judgment].Follow Bar and Bench channel on WhatsAppDownload the Bar and Bench Mobile app for instant access to the latest legal news.