The Lawboratory

Andhra Pradesh Government’s SLP Dismissed by the SC in “Amaravati Land Scam”

Supreme Court

On 19th July 2021, A bench of Supreme Court Justices Vineet Saran and Dinesh Maheshwari dismissed the SLPs of the Andhra Pradesh Government challenging the decision of quashing an FIR related to the matter of Amaravati land Scam in connection to ‘insider trading’ through land transactions.

In an earlier case dated 19th January, Supreme Court observed that the private sale transaction cannot be determined as criminalized and so as the concept of ‘Insider trading’. Though Stock Market has one of the vital offences dealing under ‘insider trading’ and works in buying and selling of the securities and bonds, but this cannot be read under the provisions of IPC i.e. Section-420. The State Government alleged that the land had been purchased in Amaravati with a knowledge of the respondents that the State had developed and after the partition of the erstwhile State Andhra Pradesh in 2014.

Senior Advocate Dushyant Dave, appearing from the side of the State argued that the Andhra Pradesh High Court had overlooked the provisions of Section 418, IPC read with Section 55(5) of the Transfer of Property Act which could be used under the initial case.

Advocate Dave argued that the High Court shouldn’t have gone into the facts of the case, rather should have left the matter for the investigating agencies and the trial court to ascertain whether the act was criminal or not.

In light of the above argument, the Supreme Court referred to the case of Bhajan Lal, wherein it was held that the court has to see the allegations in the FIR if a criminal case can be made out or not.

Further, the Bench administered that there is no illegality in the order promulgated by the High Court, thus dismissing the SLPs

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