New Delhi: The Supreme Court has declined to stay the operation of a Madras High Court order directing a probe by the Central Bureau of Investigation into the `fake FIR scam' and false insurance claims running to crores of rupees.

A Bench of Justice H.K. Sema and Justice A.R. Lakshmanan while declining the stay gave notice to the respondents (petitioners before the High Court) and posted the case for further hearing on July 11.

The Bench told senior counsel K.K. Venugopal, appearing for the State, that since several police officers were involved in the scam, it was but proper that the matter was investigated by the CBI. Pointing out that the allegation was that several police officers were hand- in- glove with the insurance companies in the false claims, the Judges observed: "If necessary this court will monitor the investigation."

The Bench said that since thousands of crores of rupees were involved, the interests of the State had to be protected by proper investigation.

Mr. Venugopal argued that the High Court could not order a CBI probe without the consent of the State Government as provided under the Delhi Special Police Establishment Act. He said several High Courts were committing the mistake by ordering CBI probe.

He said that no authority including the courts functioning under the Constitution could disregard this requirement.

The SLP said that if the impugned order was not stayed, it would have a demoralising effect on the State police force.

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