Can the CBI Directly Register an FIR in White Collar Crime Cases?
The Central Bureau of Investigation (CBI) cannot directly register an FIR in white collar crime cases in every situation; it can do so only when it has jurisdiction under the Delhi Special Police Establishment Act, 1946, either with the consent of the State Government, in cases involving Central Government employees or institutions, or pursuant to an order of a constitutional court.
Introduction
White collar crimes in India often involve complex financial transactions, corruption, misuse of public office, and large-scale frauds affecting public interest. Due to their gravity and inter-state or national ramifications, such cases are frequently investigated by the Central Bureau of Investigation (CBI). However, a common legal question that arises is whether the CBI can directly register an FIR in white collar crime cases in the same manner as the local police.
The answer is nuanced and depends on statutory provisions, constitutional principles, and judicial precedents. This blog post provides a detailed, structured, and comprehensive explanation of when and how the CBI can register an FIR in white collar crime cases under Indian law.
Statutory Framework Governing CBI’s Power
Delhi Special Police Establishment Act, 1946
The CBI derives its investigative authority from the Delhi Special Police Establishment Act, 1946 (DSPE Act).
Key provisions:
- Section 2: Constitutes the Delhi Special Police Establishment.
- Section 3: Empowers the Central Government to specify offences to be investigated by the CBI.
- Section 5: Allows extension of CBI jurisdiction to States.
- Section 6: Requires consent of the State Government for CBI to exercise powers within the State.
Thus, unlike State Police, the CBI does not have inherent jurisdiction across India.
Meaning of FIR in CBI Cases
In CBI terminology, an FIR is known as a Regular Case (RC).
Before registering an RC, the CBI often conducts a Preliminary Enquiry (PE), especially in white collar crime and corruption cases.
General Rule: CBI Cannot Directly Register FIR in All Cases
As a general rule, the CBI cannot suo motu or directly register an FIR in white collar crime cases within a State without satisfying the jurisdictional requirements of the DSPE Act.
Unlike the State Police, the CBI’s power to register an FIR is conditional.
Situations Where the CBI Can Directly Register an FIR
1. Cases Involving Central Government Employees or Institutions
The CBI can directly register an FIR in white collar crime cases involving:
- Central Government employees
- Public Sector Undertakings (PSUs)
- Autonomous bodies under Central Government control
In such cases, State Government consent is not required because the subject matter falls under the Central Government’s administrative control.
2. Cases Where the State Government Has Given General or Specific Consent
States may grant:
- General consent: Allowing the CBI to investigate specified categories of offences on a continuing basis.
- Specific consent: Given for a particular case.
If such consent exists, the CBI can directly register an FIR in white collar crime cases within that State.
3. Cases Referred by the High Court or Supreme Court
When a High Court or the Supreme Court directs the CBI to investigate a matter, the CBI can directly register an FIR irrespective of State consent.
Such court orders override the requirement of State consent under Section 6 of the DSPE Act.
4. Corruption Cases Under the Prevention of Corruption Act, 1988
In corruption cases involving:
- Central public servants
- Officers of PSUs
- Bank officials of public sector banks
The CBI can directly register FIRs, subject to compliance with sanction and procedural requirements.
5. Inter-State and Multi-State White Collar Crimes
In cases involving:
- Inter-state financial frauds
- Multi-jurisdictional economic offences
The CBI may register FIRs when jurisdiction is extended through appropriate notifications or consents.
Preliminary Enquiry Before FIR in White Collar Crimes
Purpose of Preliminary Enquiry
In white collar crime cases, especially corruption matters, the CBI usually conducts a Preliminary Enquiry (PE) to:
- Verify allegations
- Assess credibility of information
- Prevent frivolous prosecutions
The Supreme Court has recognized PE as a valid safeguard in corruption and economic offences.
When the CBI Cannot Directly Register an FIR
The CBI cannot directly register an FIR when:
- The offence is purely local in nature
- The accused are State Government officials
- No State consent exists
- There is no court direction
In such cases, investigation remains with the State Police.
Difference Between State Police FIR and CBI FIR
| Aspect | State Police | CBI |
|---|---|---|
| Jurisdiction | Inherent within State | Conditional |
| Consent | Not required | Required under DSPE Act |
| FIR Name | FIR | Regular Case (RC) |
| PE | Rare | Common in white collar crimes |
Judicial Interpretation on CBI’s Power to Register FIR
Courts have consistently held that:
- CBI is a creature of statute and must act within DSPE Act limits
- State consent is mandatory unless overridden by court orders
- White collar crimes may justify CBI investigation due to complexity and public interest
At the same time, courts caution against unnecessary CBI intervention in purely civil or local disputes.
Practical Implications for Accused and Complainants
For complainants:
- CBI is not the first forum in every white collar crime
- Jurisdictional requirements must be satisfied
For accused persons:
- FIR registration by CBI can be challenged if jurisdictional conditions are not met
- Absence of State consent can be a ground for legal challenge
Conclusion
The Central Bureau of Investigation cannot directly register an FIR in all white collar crime cases as a matter of routine. Its power to do so is governed by the Delhi Special Police Establishment Act, 1946, and depends on State consent, involvement of Central Government institutions, or directions from constitutional courts. While the CBI plays a crucial role in investigating serious economic and corruption-related offences, its jurisdiction is statutory and conditional. Understanding these legal boundaries is essential for ensuring lawful investigation, safeguarding federal principles, and protecting the rights of all stakeholders involved in white collar crime cases.
Disclaimer: This information is intended for general guidance only and does not constitute legal advice. Please consult with a qualified lawyer for personalized advice specific to your situation.
Advocate J.S. Rohilla (Civil & Criminal Lawyer in Indore)
Contact: 88271 22304
