Read Full Judgment: Operation Mobilization India & Ors. v. State of Telangana & Ors.
The case before the Supreme Court of India involves a dispute arising from FIR No. 22 of 2016, filed by respondent no. 3 on September 29, 2016, under various sections including 409, 420, 477(A), and Section 37 of the Foreign Contribution (Regulation) Act 2010. The investigation was conducted by the Economic Offences Wing (CID), Telangana State. Challenges to the FIR were rejected previously, leading to the present appeal by Operation Mobilization India & others against the freezing of their accounts by CID Telangana State on November 21, 2020. This prompted the petitioners to approach the High Court, which upheld the freezing of accounts, leading to the appeal before the Supreme Court.
During the pendency of the matter, an application was filed by the State of Telangana seeking clarification on whether the CID was authorized to investigate the case under FCRA, or if the CBI should handle it, as the amount involved exceeded one crore. The Supreme Court, upon considering this application, issued an interim order on April 7, 2021, allowing the petitioners to utilize their frozen accounts for salary and institutional expenses, with the condition to maintain proper accounts and await further orders.
In the subsequent hearing, the petitioners expressed their contentment with the interim order, agreeing to abide by the conditions imposed by the court. They asserted their intention to contest the pending proceedings on their merits and avail themselves of legal remedies as necessary. On the other hand, the complainant and the State of Telangana emphasized the importance of maintaining accurate accounts audited by chartered accountants and providing them to the investigating agency regularly.
While the contempt petition was brought up by the private respondents, the court refrained from delving into that matter, leaving it open for the investigating agency or the trial court to monitor the petitioners’ compliance with the court’s orders regarding account usage. The court also refrained from making any findings on allegations of contempt regarding account withdrawals, leaving it for further determination.
Ultimately, the Supreme Court disposed of the petitions by making the interim order of April 7, 2021, absolute. However, the court added a condition that the petitioners must maintain proper accounts audited by a chartered accountant and provide quarterly statements to the investigating officer or trial court regularly. The court clarified that its order was intended to facilitate the smooth functioning of the educational institutions and health centers run by the petitioners, without making any observations on the merits of the case. All pending applications, including the contempt petition, were also disposed of accordingly.
