2. Heard the learned counsel for the
petitioner/first accused and the learned Special Public
Prosecutor appearing for VACB.
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3. The prosecution case is that on getting previous
approval under Section 17A of the PC (Amendment) Act,
2018, a preliminary enquiry was conducted as directed by
the Enquiry Commissioner/Special Judge, Muvattupuzha,
vide CMP No. 2091/2017 and as per the preliminary
enquiry, the allegation in the complaint were found to be
true and on this basis, crime was registered by the police.
The specific allegation is that the first accused, who held
the post of Secretary and the second accused, who held
the post of President of the Parathode Ksheerolpathana
Co-operative Society(hereinafter, for short, 'APCOS')
during the period between 2017-18, 2018-19, 2019-20,
falsified the records of the APCOS and misappropriated
Rs.12,69,268.80. Apart from the above said allegation as
against accused Nos. 1 and 2, the prosecution alleged
misappropriation of Rs. 43,723.20 by the second accused,
since the second accused had received the same under
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the head 'Presidents Advance', without repaying the
same.
4. The learned counsel for the petitioner argued
that the petitioner is innocent and according to him, the
allegation pertains to the period from 2017 and the
Secretary has no role in the misappropriation. It is
argued further that the petitioner is ready to co-operate
with the investigation, therefore, he may be released on
anticipatory bail by imposing conditions.
5. The learned Special Public Prosecutor placed the
Vigilance Enquiry Report as well as the statement of the
Investigating Officer before this Court, while strongly
opposing the grant of pre-arrest bail to the petitioner on
the submission that the arrest and custodial interrogation
of the petitioner are necessary to accomplish meaningful
investigation. The relevant paragraphs of the report of the
Investigating Officer are extracted hereunder:-
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"1. The petitioner is the first accused in VC 14/2025/IDK,
U/s: 13(1)(c) & (d) r/w 13(2) of the Prevention of
Corruption Act, 1988, Section 13(1)(a) r/w 13(2) of the
Prevention of Corruption (Amendment) Act, 2018, and
Sections 406, 409, and 120B of IPC, registered at the
VACB, Idukki Unit, based on the report of Preliminary
Enquiry 05/2021/IDK.
2. It is humbly submitted that Mr. M.C. Antony, S/o
Abraham, Mulackal House, Parathode P.O, Konnathady
Village, Idukki District, filed a complaint before the
Hon'ble Enquiry Commissioner & Special Judge,
Muvattupuzha, by alleging financial irregularities in the
Idukki Parathode Milk Producers' Co-operative Society,
Limited No. 14 D (APCOS). The Hon'ble Court was
registered as CMP No. 2091/2017 and directed to
conduct of a preliminary enquiry into the allegations
vide order dated 04-02-2021. Subsequently, the
Vigilance Director ordered to conduct Preliminary
Enquiry as per letter No. E8-4833/2021/IDK dated 04-
08-2021, and registered preliminary enquiry as
PE.05/2021/IDK at the Idukki Vigilance Unit on 16-08-
2021. After completing the preliminary enquiry and
report submitted before the Vigilance Director,
recommending that a Vigilance case be registered
against the accused. Pursuant to the order of the
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Vigilance Director (No. E8-(PE 05/2021/IDK)
4833/2021/DVACB, dated 21-10-2025), this case was
registered on 15-11-2025 as VC-14/2025/IDK.
3. The brief of the case is that Mr. Manoj Jose, who served
as the Secretary of the Idukki Parathode Milk Producers
Co-operative Society Ltd. (APCOS, Registration No.
14D), during the period 10.01.2005 to 08.01.2010, and
Mr. K. M. Papachan, who served as the President of the
Society during the periods 11.01.2010 to 07.01.2015,
08.01.2015 to 06.01.2020, while serving as public
functionaries, misused their official positions and
engaged in criminal conspiracy and fraudulent conduct.
It was found that they failed to maintain proper records
related to milk sales and cattle feed sales. Further,
during the financial years 2017-18, 2018-19, and 2019-
20, serious irregularities were identified in the sale of
milk, resulting in a financial loss of ₹12,69,268.80
(Rupees Twelve Lakhs Sixty-Nine Thousand Two
Hundred Sixty-Eight and Paise Eighty Only) to the
Society. Additionally, an amount of ₹43,723/- was taken
under the account heading "President Advance" by the
2nd accused, Mr. K. M. Papachan, which has not been
repaid to the Society to date, thereby causing further
wrongful financial loss of ₹43,723/- to the Idukki
Parathode Milk Producers Co-operative Society. Thus,
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due to the misconduct, breach of trust, and deliberate
manipulation of accounts by the above individuals, the
Society has incurred a total unjust loss.
4. The petitioner herein had filed a Bail Application before
the Honourable Idukki District Sessions Court as BA
10/2026, and the Honourable Court, by order dated
24.01.2026, dismissed the same.
5. It is humbly prayed that as the petitioner has rejoined
his duty as the Secretary of the society there is every
chance of tampering with the evidence and influencing
the witnesses."
6. On perusal of the preliminary enquiry report
dated 23.08.2025 produced by the learned Special Public
Prosecutor along with FIR, it could be seen that the
allegation of misappropriation was for the period 2017-18,
2018-19, 2019-20 and in the FIR, it has been stated that
the first and second accused held the post of Secretary
and President, respectively, from 10.01.2005 to
08.01.2010, 11.01.2010 to 07.01.2015 and 08.01.2015 to
06.01.2020 and during 2017-18, 2018-19 and 2019-
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2020, this misappropriation alleged was committed. The
specific allegation is that during the period from 2017-18,
2018-19 and 2019-2020, an amount of Rs. 12,69,268.80
has been misappropriated by accused Nos. 1 and 2, and
there is specific allegation against the second accused
that he had also misappropriated Rs. 43,723/-, which he
took as 'President's Advance' which has been not paid till
this date.
7. Going by the prosecution case, mere
co-operation of the petitioner without the custodial
interrogation of the petitioner will not be sufficient to go
with fair investigation in this case involving
misappropriation of the fund of the Milk Society, which,
in fact, the money due to the poor dairy farmers. The
petitioner, being the Secretary of the Society, is a prime
accused, and grant of anticipatory bail to him would
definitely impede the investigation. In the said
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circumstances, the investigating officer seeks arrest and
custodial interrogation of the petitioner to conduct
investigation regarding the manner in which the money
was mis-appropriated, getting handwriting and signatures
of the petitioner for comparison and other purposes, and
how the money was utilised, which are inevitable to
accomplish meaningful investigation and successful
prosecution.
8. In such a case, the anticipatory bail plea of the
petitioner/first accused, merely to co-operate with the
investigation, cannot be considered, particularly when the
allegation includes commission of offence punishable
under Section 409 of the IPC, wherein the punishment
provided is ten years.
9. In the result, this anticipatory bail application is
dismissed, with specific direction to the petitioner to
surrender before the investigating officer forthwith and on
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failure to do so, the investigating officer shall proceed to
arrest the petitioner without fail.
Registry is directed to forward a copy of this order to
the Special Court, Muvattupuzha, forthwith for
information and further steps.
Sd/-
A. BADHARUDEEN
JUDGE
DCS
