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As per case facts, the appellants, a Minister for Electricity and a Technical Member/Chairman of KSEB, were convicted for causing Graphite India Limited (GIL) to illegally obtain electricity by abusing
...their official positions, leading to pecuniary advantage for the company. The prosecution alleged illegal sale without government sanction or written agreement, and preferential rates for GIL by KEB. The appellants contended that electricity was supplied to the Karnataka Electricity Board based on a state-level decision, a common practice between states, and that KEB, not they, determined consumer tariffs, with no personal gain. The High Court upheld the conviction, citing abuse of official position and illegal pecuniary advantage to GIL. The question arose as to whether the appellants had illegally sold electricity to GIL by abusing their official positions, thereby "causing to obtain" a valuable thing and resulting in pecuniary advantage to GIL, thus constituting criminal misconduct under the Prevention of Corruption Act. Finally, the Supreme Court found that electricity was supplied to the State of Karnataka following ministerial negotiations, with the Minister having authority for such decisions. The Court found no evidence of scarcity in Kerala, as alleged, nor any role of the appellants in KEB's pricing for its consumers. The lack of a formal written agreement, while irregular, did not amount to criminal liability given the acted-upon transaction. Crucially, the Court determined that the prosecution failed to prove the appellants' initiative or effort in obtaining benefits for GIL, a necessary element for the offense. Lacking mens rea and evidence to support the charges, the Court set aside the convictions and sentences.
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