Recovery of Tainted Money Not Enough for Conviction Without Proof of Demand for Bribe

Mere recovery of tainted money is insufficient to trigger the presumption of guilt under Section 20 of the Prevention of Corruption Act, 1988, unless the entire chain of events i.e., the demand, acceptance, and recovery is established, says the Supreme Court (SC) in State of Lokayuktha Police Davangere v C B Nagaraj [2025 INSC 736].

No Prior Govt Sanction Required for Inquiry or Investigation in Some Circumstances

The prior sanction of the Government, as mandated under Section 17A of Prevention of Corruption Act (PC Act) in regard to recommendations made or decisions taken, would not be necessary when the act of the public servant is ex-facie criminal or constitutes an offence. This is what the Supreme Court (SC) states in the judgement in Shankara Bhat and Others v. State of Kerala and Others [2021(5) KHC 248].

Sanction Required to Prosecute a Public Servant if the Alleged Act is Connected to Official Duties

The Section 197 of the Code of Criminal Procedure (CrPC) protects the public servants from frivolous or vexatious prosecution by requiring prior sanction from the Government before they can be prosecuted for acts allegedly committed in the discharge of their official duties and such protection extends even to acts carried out in excess of official duties, as long as there is a reasonable nexus between the alleged act and the discharge of official functions, says the Supreme Court (SC) in G.C. Manjunath v Seetaram [2025 INSC 439].

Demand of Bribe to be Proved in Bribery Case : SC Constitutional bench

A Constitutional Bench of the Supreme Court (SC) declares, in Neeraj Dutta v State ( Govt of NCT, New Delhi) [2023(1) KLD 1 (SC), that the proof of demand and acceptance of illegal gratification by a Public Servant is a sine qua non to establish the guilt under Section 7 & 13 (1) (d) (i) of the Prevention of Corruption Act, 1988 (PCA).

Prior Sanction Needed for the Court to Order Investigation u/s 19 of PCA

The government sanction, under section 19 of the Prevention of Corruption Act (PCA), is a prerequisite for a court in ordering an investigation under Section 156(3) of the Code of Criminal Procedure (CrPC) on a private complaint, against a public servant, the High Court of Kerala states in  C.V. Balan & Ors. v. State of Kerala & Ors.

Govt’s Prior Sanction Not Required in Corruption Cases

No prior sanction of the government is required, under section 17A of Prevention of Corruption Act, 1988 (PC Act), for offences like falsification of accounts, breach of trust and misappropriation of funds or acts which are ex facie criminal in nature. The Kerala High Court held this in Shankara Bhat v. State of Kerala & Ors, while deciding a few connected matters.