
Supreme Court emphasized that discharge of accused must rely solely on prosecution materials, not defence evidence.
Case in News
The Supreme Court ruled that discharge must be based on prosecution materials not defence evidence under Section 239 CrPC.
Case Overview
Case Name : STATE vs. ELURI SRINIVASA CHAKRAVARTHI AND OTHER
In this case the Supreme Court bench comprising Justice Pankaj Mithal and Justice SVN Bhatti set aside the Andhra Pradesh High Court’s order that discharged the accused under Section 239 CrPC . The court held that discharging an accused based on defence material was legally impermissible and amounted to conducting a “mini-trial” at a premature stage.
Key Aspects
The case revolved around a criminal appeal filed by the CBI against the discharge of multiple accused involved in an alleged scam concerning the procurement of cotton under the Minimum Support Price (MSP) scheme . The court evaluated the nature of the allegations and procedural errors at the trial stage .
- The accused allegedly conspired to buy cotton at low prices and sell it to CCI at higher MSP rates .
- The wrongful gain was pegged at ₹21.19 crores causing substantial loss to the Cotton Corporation of India .
- The discharge was granted on the basis of a CCI letter submitted by the defence claiming no loss occurred .
- Both the Special Court and High Court overlooked prosecution materials and accepted the defence version prematurely .
Legal Insights
The Court reinforced that the discharge stage is not meant for assessing the defence case . It is only the prosecution’s materials — chargesheet and documents — that should be examined to see whether a prima facie case exists .
- Section 239 CrPC : Allows a Magistrate to discharge the accused if the allegations do not disclose sufficient grounds for proceeding .
- Section 120-B, 420, 468, 471 IPC : Deal with criminal conspiracy, cheating and forgery .
- Section 13(2) read with Section 13(1)(d), Prevention of Corruption Act, 1988 : Pertains to criminal misconduct by public servants .
- The Supreme Court held that referring to defence material including the CCI letter at this stage is procedurally flawed and legally impermissible .
Court’s Verdict
The Supreme Court allowed the CBI’s appeal and set aside the discharge orders passed by the lower courts . The matter was remitted back to the Special Court to be reconsidered strictly in line with Section 239 CrPC without any reliance on defence documents . The judgment reaffirmed that discharge must be based on prosecution materials only .
Source – Supreme Court of India
Read also – Criminal Procedure Code ( BNSS)





