"No doubt as stated by the petitioner's counsel mere misuse of the discretionary quota would not be a criminal offence.
"However, when the misconduct is accompanied by the acts of accepting or obtaining or agreeing to accept or attempting to obtain gratification or any valuable thing or any pecuniary advantage for himself or for any other person, the same amounts to be an offence under various sections of the Prevention of Corruption Act," Justice Mukta Gupta said.
"No illegality or a legal bar having been pointed out, this court in view of the law laid down by the Supreme Court does not find it to be a fit case for interfering with the impugned order," the court said.
It also rejected the plea of Kaul that the misuse of discretionary quota did not constitute an offence.
The CBI, in the charge sheet, alleged Kaul, as former Urban Development Minister, conspired with others for allotting government accommodations for securing pecuniary benefits from allottees between 1992 and 1995.