Fraud on the State Cannot Be Brushed Aside, But Age and Ailment Warrant Leniency: Supreme Court Reduces Sentence in ₹54 Lakh Bitumen Scam Case After 30 Years

“Forgery and Criminal Breach of Trust Established Beyond Doubt—Sentence Cut to 2.5 Years Considering Age, Ailments and Delay” - Supreme Court upheld the conviction of a 71-year-old transporter for misappropriation of bulk bitumen worth over ₹54 lakhs, finding him guilty of forgery, criminal breach of trust, cheating, and use of forged documents. While affirming his guilt, the Court, noting his age, medical condition, and the 30-year-old nature of the offence, reduced his sentence from 5 years to 2 years and 6 months under Sections 407 and 420 IPC.
Justice Augustine George Masih, delivering the judgment, stated: “The guilt of the appellant has been proved beyond doubt… Yet, justice must be tempered with mercy when prolonged litigation and fragile health co-exist.”

In 1994, a supply order for 1091.95 MT of bulk bitumen valued at ₹54,07,920 was allegedly forged using fake authorization documents to fraudulently lift the consignment from Indian Oil Corporation, Haldia, in the name of the Road Construction Department, Saharsa Division. However, the material was never delivered to Saharsa and was instead diverted and sold in Kolkata, as revealed by multiple witnesses.

The Central Bureau of Investigation (CBI) filed a chargesheet against four individuals, including the appellant Krishna Kumar Kedia, proprietor of M/s Cosmo Transport, who was described as the “mastermind” behind the fraud.

Two accused died during the trial. One turned approver—Maheshwari Prasad (PW-5)—and directly implicated Kedia, admitting to forging signatures on CRCs (Consignee Receipt Certificates) on his instructions.
The Supreme Court affirmed the findings of the trial court and High Court that all elements of criminal breach of trust (Sec. 407 IPC), cheating (Sec. 420 IPC), forgery (Sec. 465 IPC), and use of forged documents (Sec. 471 IPC) had been satisfied.

The Court noted: “The evidence led by the prosecution, including the testimony of 26 witnesses, clearly establishes that the entire quantity of bitumen was fraudulently lifted but never delivered to Saharsa.”
Further, the Court observed: “The forged Consignee Receipt Certificates relied upon by the appellant were fabricated by PW-5 at the behest of the appellant… Even the Executive Engineer whose signature was forged denied signing any of the documents.”

The defence plea that the consignment was delivered was found to be “wholly unsupported by any admissible evidence.”
The Supreme Court took note of multiple mitigating circumstances in reducing the sentence:
•    The offence dated back to 1994—over 30 years ago.
•    The appellant, now 71 years old, had already undergone 1.5 years in custody.
•    He suffers from diabetes and a history of three heart attacks.

Thus, the Court ruled: “This Court is persuaded to take a lenient view… The reduced sentence would meet the ends of justice.”

Accordingly, the sentence for offences under Sections 407 and 420 IPC was reduced from 5 years to 2 years and 6 months, to run concurrently with other lesser sentences under Sections 465 and 471 IPC.

While reaffirming the gravity of white-collar crime and breach of public trust, the Supreme Court exercised compassion rooted in constitutional equity, recognizing that punishment must not turn into prolonged cruelty in cases involving aged, ailing convicts, especially where the delay is institutional and not attributable to the accused.

The Court ordered: “The appellant is directed to surrender within four weeks to serve the remaining sentence. Failing which, police authorities shall take him into custody.”

Date of Decision: April 30, 2025