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Judgment
SOUMEN SEN, C.J.
Heard Mr. Jayesh Mohankumar, learned counsel for the petitioner, Mr. Jaiju Babu, learned Senior Advocate instructed by Ms. M.U. Vijayalakshmi, learned counsel for respondent No.6, Mr. M. Sasindran, learned counsel for respondent No.7 and Ms. Vinitha B., learned Senior Government Pleader.
This Public Interest Litigation is filed by the Vice President of a political party of Kasaragod District, who is employed as a night watchman in Vellarikundu Primary Cooperative Agricultural & Rural Development Bank Ltd. The petitioner alleges that large scale irregularity and siphoning of public fund is being carried out on the pretext of conducting the “Bekal International Beach Day & Night Festival” during 2022 & 2023. The petitioner alleges that on 02.12.2022, the Tourism Department sanctioned Rs.10 lakhs for conducting the 1st Bekal International Beach Day & Night Festival. First edition of the Bekal International Beach Day & Night Festival was held between 24.12.2022 to 02.01.2023 under the organising committee chaired by the 7th respondent. The organising committee printed eight lakh tickets and raised large sums from stalls, sponsors, institutions and the public, including funds collected from Gulf countries. The 7th respondent is alleged to have stated in a press conference that a total sum of Rs.1,79,36,341/-was generated, out of which Rs.1,44,27,399/- was incurred towards expenditure, leaving a profit of Rs.35,08,942/-. Subsequently, in a second press statement, the 7th respondent allegedly revised the figures, stating that the total income was Rs.1,87,70,756/- and the expenditure was Rs.1,74,16,749/-, thereby reducing the profit to Rs.13,54,007/-.
The petitioner submitted a complaint to the Hon’ble Chief Minister seeking initiation of a vigilance enquiry, alleging possible corruption in connection with the said festival. The writ petition has been filed seeking issuance of a writ of mandamus directing the 5th respondent, namely, the Director of Vigilance, to conduct an enquiry into the accounts furnished by the organising committee under the Chairmanship of the 7th respondent in respect of the said festival conducted during the years 2022 and 2023. A further prayer has been made seeking a direction to respondent No. 2 to strictly follow the accounting principles in relation to the income and expenditure for conducting the 3rd edition of the said festival.
The petition is contested by the State respondents as well as the organising committee of the said festival. The Vigilance Department has scrutinized the records and filed an affidavit placing additional facts on record. Paragraph Nos. 4 to 20 of the said affidavit read as follows:
“4.Upon verification, it was revealed that the first edition of the Bekal International Beach Day & Night Festival was conducted from 22.12.2022 to 02.01.2023. An organising committee was formed on 17.10.2022 with representatives from various sections.
5.It was verified that the ticket fare was fixed at Rs.50/- for adults and Rs.25/- for children. Entry passes were sold through Kudumbashree units, Yathra Sree and Pallikkara Service Cooperative Bank on commission basis. Tickets were printed through A1 Printers, Kozhikode, after inviting quotations.
6.As per the final income statement maintained, an amount of Rs.1,56,37,201/-was received from ticket sales, A contract for advertisement and commercial activities was awarded to ASMI Event Management Group for Rs.26 lakhs for setting up stalls and conducting programmes. After conclusion of the festival, the entire income and expenditure were audited by Naveen Kumar, Chartered Accountant.
7.~ As per the audit report, the total income of the first edition was Rs.1,79,36,351/- and the total expenditure was Rs.1,66,27,399/-, leaving a balance of Rs.13,08,952/-, which was placed before the general meeting held on 18.02.2023.
8.After publication of the statement, an amount of Rs.5,10,000/- was received from Local Self Government Institutions and Rs.10 lakhs was received from the Tourism Department. A joint account was operated at Pallikkara Cooperative Bank Branch.
9, With regard to GST liability, it was revealed during verification that the GST Department had issued notice demanding payment of Rs.39 lakhs. No material was obtained to substantiate the allegation that members of the organising committee travelled abroad for financial collection as alleged by the petitioner.
10.After verification, a ‘report dated 28.10.2023 was submitted recommending that the complaint be forwarded to the Tourism Department for further action, since no vigilance angle was disclosed. It is also relevant that the petitioner had submitted a complaint to the Tourism Department during the same period.
11.The second complaint dated 20.10.2025 was received at the Vigilance & Anti-Corruption Bureau, Kasaragod Unit and was subjected to verification.
12.It was revealed that the second edition of the Bekal International Beach Day & Night Festival was conducted from 22.12.2023 to 31.12.2023. A people's coordination committee was formed with the sitting MLA as Chairman, the District Collector, Kasaragod as Convener, the Managing Director, BRDC as Chief Implementing Officer, and other representatives as patrons.
13.Ticket fare for the second edition was initially fixed at Rs.100/- for adults and Rs.25/- for children and later reduced to Rs.50/- for adults, Tickets were sold through authorised agencies including Kudumbashree, Yathra Sree and Pallikkara Service Cooperative Bank. Bank of Baroda was one of the sponsors and certain tickets were printed with the sponsor's emblem.
14.Verification revealed that payments to artists and performers were made through cheques and bank transfers directly to their respective accounts.
15.The total income and expenditure of the second edition were audited by Rithesh & Associates, Chartered Accountants, Kozhikode. As per the audit report, the total income was Rs.1,12,83,405/-, total expenditure was Rs.2,24,19,316/-, and the total liability stood at Rs.1,11,35,911/-.
16.In order to meet the expenditure, an amount of Rs.38.5 lakhs was allotted by the Tourism Department considering the promotional impact of the festival. In addition, an amount of Rs.13,25,000/- was received from Local Self Government Institutions. A joint account was operated by the Chairman of the organising committee and the Managing Director, BRDC at Pallikkara Co-operative Bank Branch.
17.With regard to GST matters, proceedings relating to the first edition are pending before the State GST Department. In respect of the second edition, an appeal has been filed before the Central GST Department. The GST issues are pending before the competent statutory authorities.
18.Upon verification of both complaints, it was found that no prima facie material disclosing corruption, demand or acceptance of illegal gratification, abuse of official position or criminal misconduct by any public servant was revealed.
19.The role of the Vigilance & Anti-Corruption Bureau is confined to matters involving corruption or criminal misconduct by public servants. Allegations relating to audit objections, accounting discrepancies, financial loss or administrative decisions, in the absence of corrupt motive or personal gain, do not attract vigilance jurisdiction.
20.Since no vigilance angle was disclosed during verification, the complaints were forwarded to the Tourism Department, which is the competent authority to deal with administrative and financial aspects relating to the festival.”
In brief, the Vigilance Department has arrived at a definite conclusion that, upon verification of the complaints, no material was found warranting the initiation of an enquiry by the Vigilance Department.
In the counter affidavit filed by respondent No.6, it is stated that the Bekal International Beach Day & Night Festival was planned as part of promoting the Bekal Tourism Destination promoted and developed by Government of Kerala through the Bekal Resorts Development Corporation Ltd (BRDC) and that after the conclusion of the festival, a statement of income and expenditure was prepared by the Chartered Accountant, and the said accounts were subsequently audited by the State Government. It is stated that the Chartered Accountant did not find any misuse of funds or violation of accounting principles.
The learned Senior Government Pleader, relying upon the affidavit filed by the Vigilance Department, submitted that since no irregularity has been detected, no further direction can be issued in the present writ petition. It is further submitted that prayer No. (iv) of the petition has already been complied with, inasmuch as the 5th respondent has filed a counter affidavit disclosing the nature of the enquiry conducted with regard to the accounts.
It appears that the allegation of misappropriation of funds in conducting the programme is founded on the assertion that the Tourism Department had sanctioned a sum of Rs.10 lakhs for conducting the 1st Bekal International Beach Day & Night Festival. In the minutes of the 99th meeting of the Board of Directors of the Bekal Resorts Development Corporation Ltd held on 25.06.2024, in item No.8, the Board after taking into consideration the financial statements relating to the event as vetted by the Finance Manager of BRDC and considering the popularisation of Bekal as a destination and the benefits and momentum gained out of the event, decided to extend the financial assistance, strictly as a one-time measure for the event on the lines extended by Tourism Department and Local Self Government bodies for which certain resolutions have been passed. The said item pertains to the conduct of the 2nd edition of the festival. In the affidavit filed by the Vigilance Department, a detailed examination has been undertaken, arriving at findings after considering the report submitted by the auditor along with other financial statements for the purpose of verification.
The writ petitioner contends that, although a profit was shown in the earlier edition, the claim that there was an incurred liability amounted to manipulation. We are unable to accept this submission, firstly because no material has been placed on record to demonstrate that the report filed by the Vigilance Department, after scrutinising the income and expenditure accounts, is based on no material, or that there is coherent evidence to show that the said report of the Vigilance Department is manifestly erroneous. It is on record that the said accounts have been audited, and no infirmity has been found by the auditor either in relation to proper bookkeeping or with regard to the expenditure incurred for conducting the event. In view of this, we find no reason to issue any further directions.
The Writ Petition (PIL) is accordingly disposed of.
APPENDIX OF WP(PIL) NO. 156 OF 2025
PETITIONER EXHIBITS
Exhibit P1 A TRUE COPY OF THE COMPLAINT FILED BY THE PETITIONER BEFORE THE HON’BLE CHIEF MINISTER OF KERALA DATED 19.04.2023 ALONG WITH TRANSLATION
Exhibit P2 A TRUE COPY OF THE NOTICE DATED NIL PUBLISHED ALONG WITH TRANSLATION
Exhibit P3 A TRUE COPY OF THE NUMBER OF PEOPLE ATTENDED THE SINGER’S SHOW IN THE FACE BOOK POST DATED NIL
Exhibit P4 A TRUE COPY OF THE PRESS MEET CONDUCTED BY THE COORDINATING COMMITTEE AND THE STATEMENT PUBLISHED IN THE MATHRUBHUMI DAILY DATED 14.07.2024 ALONG WITH TRANSLATION
Exhibit P5 A TRUE COPY OF THE REPRESENTATION SUBMITTED BY THE PETITIONER DATED 13.08.2024 UNDER THE RIGHT TO INFORMATION ACT ALONG WITH TRANSLATION
Exhibit P6 A TRUE COPY OF THE MINUTES OBTAINED BY THE PETITIONER WITH REGARD TO THE MEETING OF THE BOARD OF DIRECTORS OF BRDC DATED 25.06.2024
Exhibit P7 A TRUE COPY OF THE LETTER DATED 17.07.2024 ISSUED BY THE FINANCE MANAGER
Exhibit P8 A TRUE COPY OF THE RELEVANT PORTION OF NOTE PUT UP BY THE 2ND RESPONDENT DATED NIL
Exhibit P9 A TRUE COPY OF THE RELEVANT PORTION OF BLOCK PANCHAYATH AUDIT REPORT DATED 22.01.2025 ALONG WITH TRANSLATION
Exhibit P10 A TRUE COPY OF THE NOTICE ISSUED BY THE SITTING MLA DATED NIL ALONG WITH TRANSLATION
Exhibit P11 A TRUE COPY OF THE REPRESENTATION SUBMITTED BY THE PETITIONER ON 22.10.2025 BEFORE THE DIRECTOR, VIGILANCE ALONG WITH TRANSLATION
Exhibit P12 A TRUE COPY OF THE RECEIPT ISSUED TO THE PETITIONER DATED 22.10.2025 WITH REGARD TO THE REPRESENTATION ALONG WITH TRANSLATION
Exhibit P13 A TRUE COPY OF THE TICKETS DATED NIL ISSUED BY THE COMMITTEE ONE WITH THE SPONSOR
Exhibit P14 A TRUE COPY OF THE TICKETS DATED NIL ISSUED BY THE COMMITTEE ONE WITHOUT THE SPONSOR