The Hon’ble Supreme Court of India, in State of Punjab v. Labh Singh, (2014) 16 SCC 807, has categorically held that prior sanction to prosecute a public servant for offences under the Prevention of Corruption Act, 1988 (hereinafter referred to as “the P.C. Act”) is not required, if the accused public servant had already retired from service on the date on which the Court takes cognizance of the offence.
In Station House Officer, CBI/ACB/Bangalore v. B.A. Srinivasan and Another [2020 (2) SCC 153], the Supreme Court reiterated this legal position.
Protection Available When the Official Remain in Service
The statutory protection of prior sanction for prosecution under the Prevention of Corruption Act, 1988 is available only so long as the accused continues to hold the status of a public servant and remains in service.
The sanction contemplated under Section 19 of the P.C. Act is mandatory only if the accused public servant continues to be a public servant at the time when the Court takes cognizance of the offence. However, if he has ceased to be a public servant by that time, the Court is competent to take cognizance of the offence without obtaining such prior sanction. The protection afforded under Section 19 of the P.C. Act is not available to a retired public servant.
No Previous Sanction Needed for A Retired Person
Thus, on a plain reading of Section 19 of the P.C. Act, it is manifest that no previous sanction is necessary for the prosecution of a person for an offence alleged to have been committed under the P.C. Act, if such person has ceased to be a public servant at the time of taking cognizance by the Court.
