The First Division Bench directed the Crime Branch-Criminal Investigation Department (CB-CID) to hand over the entire case files to the CBI officials.
The Madras High Court has ordered the Central Bureau of Investigation (CBI) to probe hundreds of petrol, diesel and auto gas retail outlets that were set up across the state on fake No Objection Certificates (NOCs) allegedly issued by collectors and police commissioners before 2020.
First Division Chief Justice Manindra Mohan Shrivastava and Justice G. Arul Murugan directed the Criminal Investigation Department (CB-CID) to hand over the entire case files to CBI officials. The order was issued following expressions of dissatisfaction over the probe led by the CB-CID.
The bench pointed out that the bogus NOC racket in the state came to light during the hearing of an incidental habeas corpus petition by Justices N. Kirubakaran (retd) and P. Velmurugan in October 2020. The petition related to preventive detention of two persons named KL Sivakumar and C. Jayaprakash.
Thereafter, the Bench found that they were accused of issuing fake NOCs bearing the seal of the Greater Chennai City Police Commissioner. Suspecting that the crime could not have been confined to Chennai, the judges directed the Director General of Police to verify the records of all the districts and submit a detailed report.
Accordingly, the DGP reported to the court as many as 91 fake NOCs, which were apparently used to run fuel outlets across the state. However, following Justice Kirubakaran’s retirement in August 2021, the habeas corpus petition was closed by another division bench of the Supreme Court on 6 September 2021.
Then, in 2023, this suit was filed by advocate VBR Menon, who demanded strong action in this matter. The investigation into the matter was transferred to the CB-CID, which started probing the setting up of several fuel outlets in Chennai, Erode and Dindigul districts on the basis of fake NOCs.
Although the court sought regular progress reports from the CB-CID, the first division bench found that the police had taken action against those who fabricated the records as well as the middlemen, but hardly any action was taken against the beneficiaries who were running fuel dispensaries using fake NOCs.
The judges found that the crime could not have occurred without the active involvement of the beneficiaries, who apparently approached middlemen and paid thousands of rupees to get NOCs instead of submitting applications to the district administration and police officials concerned.
“We have given the concerned authorities (CB-CID officials) more than one opportunity to come out with a satisfactory reply; but till date no satisfactory reply has been forthcoming, let alone a fair investigation by the concerned investigating agency,” the Division Bench wrote expressing its dismay.
In writing the order, the Chief Justice wrote: “The material floating on the surface called for a much deeper and fair investigation to examine the role of the beneficiaries for whose benefit the entire system worked.” He said action was taken against beneficiaries only in Erode and Dindigul but not in Chennai.
“We have no hesitation in saying that the manner in which the investigation has been conducted or any further investigation that is going on is not in the right direction,” the Bench said before deciding to hand over the probe to the CBI.
Published – 26 Feb 2026 20:43 IST
