Voices. Verdicts. Vision

Voices. Verdicts. Vision

Kerala HC: BEVCO Staff Liable for Liquor Misappropriation; Repayment Does Not Nullify Prosecution

P.N. Suresh Kumar vs State of Kerala [Decided on September 24, 2025]

BEVCO Liquor Misappropriation

In a case involving the misappropriation of a huge quantity of foreign liquor to the tune of Rs. 27.92 lacs in the Kerala State Beverages (M&M) Corporation Limited (BEVCO), the Kerala High Court (Ernakulam Bench) held that mere repayment of the amount of the misappropriated foreign liquor by the accused persons, on finding the huge misappropriation at a belated stage itself, would not efface their criminal prosecution. The Court therefore refused to quash the case, and highlighted that such a matter would require framing of charges and trial of the accused persons.

A Single Judge Bench of Justice A. Badharudeen observed that when a large portion of the stock was misappropriated, it should not happen without any intentional acts of the accused, who were the custodians of the stock. The Bench also found that the repayment was done without any interest and that too at a much belated stage, and the accused persons enjoyed the benefits of misappropriation between the period of misappropriation and the remittance of the value for the same.

On scanning the prosecution allegations, the Bench noted that the same was confined to the misappropriation of foreign liquor amounting to Rs. 27.92 lacs, which was a gigantic quantity, and hence, such a shortage in stock of the foreign liquor could not have been said to have occurred because of some unintentional omissions or oversights. The Bench accepted that the misappropriation of said gigantic quantity is intentional and clearly foreseeable with the active participation of the accused persons.

The Single Judge therefore refused the contention raised by the petitioners, that it was very common in BEVCO outlets to find discrepancies in the stock due to the voluminous work and the delay in stock verification, cannot be accepted as an explanation for this huge shortage. The Bench therefore refused to quash the FIR, while affirming that the petitioners had the intention to commit the crime.

Briefly, in this case, the petitioner-accused, while working as the Shop-in-Charge, along with other accused working as staff of Muvattupuzha Beverages outlet under Kerala State Beverages Corporation, as such being public servants, abused their official position and shared a common intention, and with dishonest intention, misappropriated the stock of foreign liquor under their control to the tune of Rs. 27.92 lacs and converted for their own use.

This led to the commission of criminal misconduct through corrupt and illegal means, causing wrongful loss to the Government Exchequer and corresponding pecuniary gain to the accused persons, as they had collective responsibilities for the entrusted stock of foreign liquor. Accordingly, they were held liable for offences punishable under Section 13(1)(c) read with Section 13(2) of the Prevention of Corruption Act, 1988, (PC Act 1988), Section 13(1)(a) of the Prevention of Corruption (Amendment) Act, 2018, along with Sections 403, 409, 420, and 34 of the Indian Penal Code (IPC), resulting in lodging of FIRs against them.


Appearances:

Advocate Mathew Kuriakose, for the Petitioner

Advocates Rajesh. A, Rekha. S, and Naveen, for the Respondent

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P.N. Suresh Kumar vs State of Kerala

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