Bombay High Court Stays CBI Probe Against Tata Consulting Engineers, Cites Breach Of IT Act

Bombay High Court Stays CBI Probe Against Tata Consulting Engineers, Cites Breach Of IT Act

Introduction

The Bombay High Court has stayed an investigation against Tata Consulting Engineers (TCE) in a case registered by the Central Bureau of Investigation (CBI) in connection with the alleged ₹800 crore scam in the Jawaharlal Nehru Port Authority's (JNPA) capital dredging project. The court noted a “glaring illegality” in the search and seizure memo, including the disclosure of a password to access a laptop.

Factual Background

The case pertains to a 2003 project meant to expand the navigational channel shared between JNPA and Mumbai Port to accommodate larger cargo vessels. TCE was appointed project management consultant and was responsible for preparing tender documents and supervising project execution. The CBI alleged that key officials at JNPA and TCE were involved in a criminal conspiracy that led to significant financial losses during both phases of the project.

Procedural Background

The CBI lodged an FIR on June 18, naming TCE along with its director Devdutt Bose, former JNPA chief manager Sunil Kumar Madabhavi, and other public officials. They were booked under Sections 120-B (criminal conspiracy) and 420 (cheating) of the Indian Penal Code (IPC) and multiple provisions of the Prevention of Corruption Act (PC Act). TCE filed a petition before the High Court to quash the FIR, denying any wrongdoing and contending that its role was restricted to consultancy.

Contentions of the Parties

TCE contended that there was no material evidence to support the charges against it and that its role was limited to consultancy. The CBI alleged that TCE was involved in a criminal conspiracy that led to significant financial losses during both phases of the project.

Reasoning & Analysis

The coram of Justice AS Gadkari and Justice Rajesh Patil stayed the investigation after noting a “glaring illegality” in the search and seizure memo, which disclosed the password to access the laptop of Devdutt Bose. The court observed that this was a breach of Section 72 of the Information Technology Act and could result in unauthorized access or misuse by third parties, including competitors.

Implications

The court's decision highlights the importance of following due process and protecting sensitive information during investigations. The outcome of the case may have implications for the CBI's investigation and the role of consultants in large-scale projects.

Final Outcome

The court stayed the investigation and will next hear TCE's petition seeking quashing of the FIR after two weeks. The CBI counsel has been asked to take instructions on the particulars of the FIR.

In this case TCE was represented by Mr. Amit Desai, Senior Advocate.