Srinagar: A special anti-corruption court in Srinagar on Wednesday acquitted three former officials of the Kashmir Valley Milk Producers Cooperative Federation in a Rs 3.13 crore corruption case dating back to 1999, ruling that the prosecution had failed to prove the charges beyond reasonable doubt.
The Court of Additional Special Judge Anti-Corruption, Srinagar, presided over by Mehreen Mushtaq, delivered the verdict in the case titled State through PS VOK vs Abdul Majeed Bhat and others, arising out of FIR No. 24/1999 registered by the then Vigilance Organization, now known as the Anti-Corruption Bureau (ACB).
The accused—Abdul Majeed Bhat, then In-charge Managing Director of the Federation at Cheshma Shahi, Srinagar; Gayas Ud Din, then Accounts Officer; and Abdul Rashid Rather, then Accounts Assistant—were facing multiple charges, including corruption, cheating, forgery, and criminal conspiracy under the Prevention of Corruption Act and the Ranbir Penal Code (RPC).
In its judgment, the court observed that “the prosecution has not been able to establish any illegal or corrupt means used by the accused to cause pecuniary advantage to themselves or any other person.”
It further held that the evidence on record failed to substantiate the essential ingredients of offences under the Prevention of Corruption Act as well as those relating to forgery, cheating, and criminal conspiracy.
The case arose from a complaint alleging large-scale financial irregularities within the Milk Federation, including embezzlement of funds, manipulation of records, fraudulent payments, and abuse of official position.
Investigators had claimed that the accused officials, in collusion with private contractors, violated procurement norms, made excess payments, and engaged in irregular accounting practices, causing substantial losses to the State exchequer.
According to the prosecution, the accused facilitated milk procurement from private contractors without proper authorization, ignored quality standards, and approved advance payments in violation of established procedures.
In one instance, excess payments were allegedly made to contractors due to discrepancies in recorded and actual milk supplies. It was also alleged that arrears were fraudulently drawn by one of the accused for a period during which he was not even posted in the Federation.
The prosecution further asserted that the accused, by preparing false records and indulging in tampering, insertions, overwriting, and removal of pages from cash books and other official records, subjected the federation to a loss of Rs 3,13,03,466.80 due to alleged misuse and mismanagement.
The investigation pointed to extensive manipulation of financial records, including overwritten entries and missing pages from cash-books, some of which were reportedly recovered during searches.
Authorities had claimed that these irregularities resulted in a cumulative loss exceeding Rs 3.13 crore, including interest losses, irregular salary disbursements, fictitious travel allowance claims, and diversion or misuse of funds meant for capital investments.
However, the court held that the prosecution’s evidence—both oral and documentary—was insufficient to conclusively prove the charges. The judge noted that key links necessary to establish criminal intent, conspiracy, and fraudulent conduct were either missing or inadequately demonstrated during the trial.
The case, instituted in June 2002 following the completion of investigation and sanction for prosecution, witnessed prolonged proceedings over nearly two decades. In 2019, the defence chose not to lead evidence, after which the matter was listed for final arguments.
With the acquittal, the court discharged the accused of all allegations and directed the release of their personal and surety bonds. It also ordered that any seized documents or property be returned to the rightful claimants after the expiry of the appeal period.
