#misappropriation of public funds

Bombay High Court Nagpur Bench rules that an FIR under government circulars for misappropriation of Gram Panchayat funds can only be lodged if the enquiry report explicitly discloses a cognizable offence. The court emphasized that mere irregularities or administrative lapses do not automatically trigger criminal proceedings, safeguarding public officials from arbitrary FIRs.

The Bombay High Court denied anticipatory bail to an accused who routed Rs. 84 lakh through multiple accounts as part of a Rs. 1.84 crore government fund scam, holding that such structured fund diversion undermines recovery and necessitates custodial interrogation. This sets a precedent that procedural laundering, even without direct benefit, disqualifies pre-arrest relief in large-scale public corruption cases.