Dhanraj N Asawani vs Amarjeetsingh Mohindersingh Basi and Others

Bench: 3 — Dhananjaya Y Chandrachud, J B Pardiwala, Manoj Misra

In Brief

A shareholder of a co-operative bank sought to file an FIR alleging financial irregularities and misappropriation based on an audit report. The High Court quashed the FIR, holding that Section 81(5B) of the Maharashtra Co-operative Societies Act 1960 exclusively empowers the auditor or Registrar to file FIRs for audit-discovered offences. The Supreme Court allowed the appeal, holding that Section 81(5B) imposes a positive duty on the auditor and Registrar but does not preclude others from initiating criminal proceedings. The Court affirmed that absent a specific statutory bar, any person may set the criminal law in motion, and once set in motion, police must investigate independently.

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Criminal Procedure Cooperative Societies Law FIR Registration Statutory Interpretation Audit and Financial Irregularities Locus Standi in Criminal Law Administrative Law

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