SC Set Aside High Court's Order for CBI Investigation, Citing Lack of Exceptional Circumstances and Vague Allegations

This appeal was preferred against the order of the High Court of Punjab and Haryana, which had directed the transfer of investigation in FIR No. 215/2022 from Haryana Police, to the Central Bureau of Investigation (CBI). The FIR was lodged by a pharmaceutical businessman, alleging that the Vinay Aggarwal (appeallant), who had impersonated himself as an Inspector General (IG) of the Intelligence Bureau (IB) and coerced him to transfer a substantial sum of money and conduct business with the appellant's associates through threats and undue pressure.

The complainant sought the transfer of investigation under Section 482 of the Criminal Procedure Code (CrPC), alleging potential involvement of local police officials with the appellant.

The Supreme Court analyzed whether the High Court was justified in directing the transfer of investigation to the CBI based on the allegations made by the complainant when the investigation is still in the initial stage. The Apex Court reiterated the settled preposition of law that while Constitutional Courts possess the power to direct CBI investigation, this power should be exercised sparingly, cautiously, and in exceptional situations. The Apex Court also observed that such directions should not be given routinely or merely based on allegations against the local police, and also when the complainant's allegations of police connivance were vague and unsubstantiated.

Supreme Court also observed that the complainant's admission of knowing the appellant since 2019 for business dealings, which cast doubt on the claim of being unaware of the alleged impersonation until the filing of the FIR in October 2022. The Apex Court emphasized that the parameters laid down for directing CBI investigation, such as the need for credibility, instilling confidence, national or international ramifications, or necessity for complete justice, were not fulfilled in the present case. The constitution of a Special Investigation Team (SIT) by the local police under the chairmanship of an Assistant Commissioner of Police (ACP) was also noted by the Court.

Thus, Supreme Court allowed the appeal by setting aside the order of the High Court and held that the complainant had failed to demonstrate the existence of exceptional circumstances warranting a transfer of the investigation to the CBI at the initial stage based on vague and unsubstantiated allegations.

The Apex Court clarified that its observations were limited to the issue of CBI investigation and would not affect the ongoing investigation by the Haryana police, which should be conducted in a fair and just manner. A related contempt petition against CBI officials for registering an FIR despite a stay order was also disposed of after the CBI tendered an unconditional apology.

CORAM: JUSTICE SUDHANSHU DHULIA & JUSTICE K. VINOD CHANDRAN
BETWEEN: VINAY AGGARWAL VS THE STATE OF HARYANA AND ORS.2025 INSC 433
DOJ: 02-04-2025