The court's observation came while convicting former Union Minister P K Thungon and three others in a corruption case lodged in 1998 by CBI in connection with misappropriation of funds released by the Centre.
The court also summoned as accused five officials, who were then active public servants and against whom sanction for prosecution was not granted earlier by Nagaland government, for November 4 saying there were enough material on record to take cognizance of offences against them.
Special CBI Judge Ajay Kumar Jain held despite these kind of "gross abuses" of authority by government officials and making of money in illegal or corrupt manner, the Nagaland government had not accorded sanction to prosecute them.
"The conduct of state government in this regard is deprecated. The people of Nagaland are deprived of legitimate central funds released for their development and the act of non-grant of sanction for prosecution against corrupt official by state govt is in fact betrayal of public trust.
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"State government officials including K Konngam Konyak, Mezakrol, Nielakuo Suokhrie, K Angami and Bandang Wapang are found to be indulged in the illegal acts for misappropriating the additional central fund," the court said.
CBI, in its charge sheet filed in 2003, had said these five accused could not be prosecuted due to want of sanction.
The court had on July 21, convicted 69-year-old Thungon, who was the then Minister of State Ministry, Urban Affairs and Employment, Tali AO, C Sangit and Mahesh Maheshwari in the case and they were ordered to be taken in judicial custody.