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TMI Blog2017 (2) TMI 926X X X X Extracts X X X X X X X X Extracts X X X X ..... , Mr. J. Karupiah, Adv., Mr. K.C. Paneerselvam, Adv., Mr. Bharani Dharan, Adv., Mr. Dhanajeyan, Adv., Mr. Kulasekaran, Adv., Mr. R. Rakesh Sharma R., Adv., Mr. Gaurav Agrawal, AOR, Mr. M.P. Parthiban, Adv., Dr. Subramanian Swamy, Intervenor-in-person, Mr. Raghavendra S. Srivatsa, AOR, Mr. R. Gopalakrishnan, AOR, Mr. Jay Kishor Singh, AOR, Mr. Abhay Kumar, AOR, Mr. Saurabh Mishra, Adv., Mr. Himanshu, Adv., Mr. Vineet Kr. Singh, Adv., Mr. Khalid Akhtar, Adv. JUDGMENT Pinaki Chandra Ghose, J. 1. Leave granted. 2. These appeals project a challenge to the judgment and order dated 11.5.2015 rendered by the High Court of Karnatka in the appeals preferred by the respondents herein, thereby acquitting them of the charge under Sections 120B and 109 of Indian Penal Code, 1860 (for short "IPC") read with Sections 13(1)(e) and 13(2) of the Prevention of Corruption Act, 1988 (for short "1988 Act") as framed against them and also resultantly setting-aside the order of the Trial Court for confiscation of properties, both movable and immovable, of the concerned firms, as mentioned therein. In the meantime, after the conclusion of the arguments, the respondent No.1 expired and, thus in law, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esides, she also claimed to have possessed balance in her bank accounts to the extent of Rs. 1 lakh and certain items of jewellery. 4. A2 - Tmt. Sasikala Natarajan is the wife of one Mr. M. Natarajan who had joined Government service as a Publicity Assistant in the Department of Information and Public Relation, Government of Tamil Nadu, in the year 1970 and thereafter promoted in succession eventually as Deputy Director in the year 1986 in the same department. He tendered his resignation from Government service on 1st November, 1988 which was accepted by the Government of Tamil Nadu with retrospective effect on 3rd April, 1991. 5. A2, as it appears from the facts, is the daughter one C. Vivekanandan, a Medical Compounder, and her marriage with said Natarajan was held in the early 1970's. A2 was initially an occasional visitor to the residence of A1 at No.36, Poes Garden, Chennai-86, and started permanently living there with A1 from 1988 onwards and was acknowledged and declared by A1 as her friend-cum-sister. A2 continued to live with A1 since then. 6. A3 - Tr. V.N. Sudhakaran is the son of A2's elder sister Smt. Vanithamani and T.T. Vivekanandan. He started residing at No.36, P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that during the check period i.e. from 1.7.1991 to 30.4.1996, there were no business activities at all in respect of many of the above firms, and in respect of others, the activities were more in the nature of acquiring assets like lands, machinery, building etc., which were not production oriented. No income-tax returns were filed by these firms. No assessment for commercial tax has also been done with respect to the business of these firms. A1 also did not file her Income-tax returns for the assessment years 1987-88 to 1992-93 till November, 1992 and when this issue was sought to be raised in Parliament, A1 filed the income-tax returns for the above period in November, 1992. Subsequent to 1.7.1991, assets in the form of movable and immovable properties and pecuniary resources like bank deposits etc., were found acquired not only in the name of A1, but also in the names of A2, A3 and A4 and the firms floated in their names. Scrutiny of various bank accounts maintained in the names of A1 to A4 and in the names of the above firms disclosed that huge credits in cash had been frequently made into various accounts which were not commensurate with the income of the individuals and of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... public office as Chief Minister of Tamil Nadu, had acquired properties and earned income disproportionate to her known sources of income. The said complaint was registered as Crl.M.P. No.3238 of 1996 and by order dated 21.06.1996, the Principal Sessions Judge/Special Judge directed investigation under Section 17 of 1988 Act and Section 202 of Cr.P.C. and further directed to collect necessary materials and submit a report before the Court within a period of two months. Pursuant to the said order, PW-240 - Smt. Letika Saran, a senior IPS Officer, took up the investigation, collected records and documents from various sources. 12. During the investigation, the said order passed by the Principal Sessions Judge/Special Judge was challenged before the High Court of Madras. The investigation was stayed for a brief period and thereafter the High Court was pleased to direct the Director of Vigilance and Anti Corruption, Madras (hereinafter also referred to as "DVAC") to take appropriate steps to investigate into the allegations made in the complaint and ultimately, an FIR was filed against A1 on 18.9.1996 as per Ext.P-2266. 13. During investigation, after conducting search of the residen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hin the cognizance of this Court. Thirdly:- That you A2 to A4 in pursuance of the said criminal conspiracy during the said period and the said places abetted A1 who was a public servant, by intentionally aiding her in the possession of pecuniary resources and property disproportionate to her known sources of income and for which she could not satisfactorily account, by holding a substantial portion of the said pecuniary resources and property in your names and in the names of the business enterprises floated in your names, and thereby you A2 to A4 committed an offence punishable u/Sec. 109 I.P.C. r/w 13(2) r/w 13(1)(e) of Prevention of Corruption Act, 1988 and within the cognizance of this Court. 15. The charges were denied by the accused persons. During the pendency of the trial, the D.V. & A.C. was permitted further investigation under Section 173(8) of Cr.P.C. and was granted letters rogatory by the Designated Court for collecting evidence and materials relating to the alleged accumulation of disproportionate assets/wealth by A1 in conspiracy with A2 outside the country. On the basis of the evidence collected during further investigation, a separate FIR in Crime No.2/AC/2000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nable doubt that A1 to 4 were parties to a criminal conspiracy with the object of acquiring and possessing pecuniary resources and assets to the extent of Rs. 66,65,20,395/- in the names of A1 and in the names of A2 to 4 and the 32 business enterprises floated in the names of A2 to 4 and thereby committed the offence punishable u/Sec. 120-B of Indian Penal Code R/w. Sec.13 (2) R/w. Sec. 13 (1) (e) of Prevention of Corruption Act, 1988? (c) Whether the prosecution further proves beyond all reasonable doubt that A2 to A4 abetted the commission of the above offence by intentionally aiding A1 in the acquisition and possession of pecuniary resources and properties disproportionate to her known source of income by holding substantial portion thereof in their names and in the names of 32 business enterprises floated in the names of A2 to A4, rendering them liable for conviction for the offence punishable u/Sec. 109 Indian Penal Code R/w. Sec. 13(2) R/w. Sec.13(1)(e) of Prevention of Corruption Act, 1988? (d) What order ? 19. The Trial Court appraised the evidence adduced in respect of the points formulated by it and duly dealt with the charges framed against the accused. The Trial C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uilding at Door No. 19, Pattammal Street, Chennai in Plot No. 83, R.S. No. 4087, Extent 18907 Sq. ft. purchased from V.H. Subramanian, S/o H. Venkatasubban,15, Venkatraman Street, Srinivasa Avenue, Chennai-28 M/s Jaya Publications (Selvi J. Jayalaitha and Smt. N. Sasikala) 5,70,039.00 8. Shop No. 14, Ground Floor at 602, Anna Salai, Chennai-6 purchased from Mohd. Hanif, No. 7, Gulam Abbas Ali Khan, 1st Street, Thousland Lights, Chennai-6 in the name of M/s Sasi Enterprises C - Rs. 85,000/- S - Rs. 13,045/- F - Rs. 859/- M/s Sasi Enterprises 98,904.00 9. Undivided share of land only at Door No. 14, Khadar Navaz Khan Road, Nungambakkam in R.S. No. 58/51 to the extent of 68/12000 undivided share in 11 grounds and 736 Sq. ft. of land purchased from M/s Holiday Sports Pvt. Ltd., office at 14, Khadar Navaz Khan Road, Chennai-6 ,, 2,10,919.00 10. Land and building at Door No. 213/B, St. Mary's Road in Sy. NO. 72, New No. 212, Extent 1206 Sq.ft. Ft. purchased from K. Selvaraj, S/o Munusamy Naidu, 44, Vanniyampathy Street, Mandaveli, Chennai-28 Selvi J. Jayalalitha 3,60,509.00 11. Shop No. 18 of 189 Sq. ft. in ground floor at Door No. 602, Mount Road together with 54/42656th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 91 in Canara Bank at Kellys branch with SB Acc. No. 38746 opened on 30.12.1988 in the name of Smt. N. Sasikala Smt. N. Sasikala 13,601.98 25. Cash balance as on 1.7.1991 in Central Bank of India, Secunderabad with SB Acc. No. 20614 opened on 19.5.1989 in the name of Selvi J. Jayalalitha Selvi J. Jayalalitha 9,18,210.29 26. Cash balance as on 1.7.1991 in Canara Bank of Mylapore branch with CA No. 1952 opened on 23.10.1989 in the name of Namadhu MGR in which Selvi J. Jayalalitha and Smt. N. Sasikala are partners Namadhu MGR 5,51,826.94 27. Cash balance as on 1.7.1991 in Canara Bank of Mylapore branch with SB Acc. No. 23218 opened on 23.5.1990 in the name of Smt. N. Sasikala Smt. N. Sasikala 1,40,198.25 28. Cash balance as on 1.7.1991 in Canara Bank of Mylapore branch with CA No. 2047 opened on 26.9.1990 on transfer from Kellys branch in the name of Selvi J. Jayalalitha and Smt. N. Sasikala M/s Jaya Publications rep. by Selvi J. Jayalalitha and Smt. N. Sasikala 7,83,860.97 29. F.D. No. 451/1990, dt. 19.6.1990 with Canara Bank of Mylapore ,, 64,520.00 30. Cash balance as on 1.7.1991 in the Bank of Madurai, Anna Nagar branch with SB Acc. No. 5158 opened on 28.2. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sequent renewals is to mature on 29.1.1998. ,, 5,00,000.00 50. Advance amount paid for purchase of 72/12000 undivided share of land in 11 grounds and 1736 Sq. ft. in R.S. No. 58/5 at 14, Gems Court, Kadhar Navaz Khan Road, Nungumbakkam, paid by Ch. No. 513735, dt. 23.4.1990 of CB, Madras which was registered as document No. 641/1993 of SRO, Thousand Lights branch, dt. 28.7.1993) M/s Sasi Enterprises 50,000.00 51. MIDR No. 66/9 with Central Bank of India, Secunderabad deposited on 2.5.1990 Selvi J. Jayalalitha 3,00,000.00 52. Cash balance as on 1.7.1991 in SB Acc. No. 38671 of Canara Bank, Kellys in the name of Selvi J. Jayalalitha ,, 1,80,031.22 Grand Total 2,01,83,956.53 21. The Trial Court also gave the details of the income, derived by the accused during the check period i.e.1.7.1991 to 30.4.1996, in Annexure-III, (being Ext.P-2329) which is set out hereunder: ANNEXURE-III (Ex.P.2329) (Income during the check period from 1.7.1991 to 30.4.1996) Sl. No Details of income Amount (Rs.) Exhibits 1. Loan obtained from Indian Bank, Abhiramapuram in the name of M/s Sasi Enterprises of which the outstanding principal was Rs. 13,55,023/- 25,00,000 P.1258 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. Interest from Can Finance to Selvi J. Jayalalitha (vide FDR No. 186/1991-92); 8,76,896.00 P.1377 16. Interest from Can Finance to Selvi J. Jayalalitha (vide FDR No. 352/1994-95); 4,71,808.00 P.1377 17. Interest from Sriram Investments to Selvi J. Jayalalitha (vide FDR No. 5006835) for Rs. 30 lakh; 6,53,818.00 P.1382 18. Interest from Sriram Investments to Selvi J. Jayalalitha (vide FDR No. 5007694) for Rs. 15 lakh; 3,09,088.60 P.1382 19. Interest from Sriram Investments to Selvi J. Jayalalitha (vide FDR No. 5015954 for Rs. 15 lakh 2,09,928.50 P.1382 20. Interest from Sriram Investments to Selvi J. Jayalalitha (vide FDR No. 5015955 for Rs. 10 lakh; 1,39,947.80 P.1382 21. Interest from Sriram Investments to Selvi J. Jayalalitha (vide FDR No. 5015956 for Rs. 5 lakh; 84,522.80 P.1382 22. Interest from Sriram Investments to Selvi J. Jayalalitha (vide FDR No. 71533 for Rs. 5 lakh; 1,27,871.50 P.1382 23. Interest from Sriram Investments to Selvi J. Jayalalitha (vide FDR No. 21330 for Rs. 5 lakh; 87,960.83 P.1382 24. Interest from Sriram Investments to Selvi J. Jayalalitha (vide FDR No. 5025367 for Rs. 20 lakh; 1,34,977.00 P.1382 25. Interest fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f clearing in SB 22792 of CBI, Secunderabad of Smt. N. Sasikala (rental income for No.16, Radhika Colony, Secunderabad); 2,23,000.00 P.937 41. Interest paid to Smt. N. Sasikala through SB 38746 of Canara Bank, Kellys Branch; 3,901.00 P.977 42. Interest from SB 24621 of Canara Bank, Mylapore to V.N. Sudhakaran; 24,323.00 P.1572 43. Interest from FDR No. 1401/1992 of Canara Bank, Mylapore for Rs. 5 lakh to V.N. Sudhakaran; 13,562.00 P.1572 44. Interest from FDR 238/1993 of Canara Bank, Mylapore for Rs. 5 lakh by renewal of FDR 1401/1992; 12,329.00 P.1576 45. Hire charges from ACT India Ltd., for the vehicle No. TSR 333 Swaraj Mazda van owned by V.N. Sudhakaran from 3.2.1993; 9,18,910.00 P.659 46. Brokerage charges received by V.N. Sudhakaran for the deposits made by Selvi J. Jayalalitha in Can Fin. Homes Ltd., (vide FDR Nos. 186/1991- 92 & 352/1994-95; 3,00,000.00 P.548 47. Loan obtained by Smt. J. Elavarasi from Royapetta Benefit Fund (RBF Nidhi) Ltd., (vide HML/787, dt. 7.10.1995); 35,00,000.00 48. Hire charges received from ACT India Ltd., for the vehicle No. TN-01/H-9999 of Swaraj Mazda van owned by Smt. J. El ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hennai for the period from 1/1992 to 4/1996 (Rs. 4000 x 49) + Rs. 4500 x 3) + (Rs. 45000 as advance) 2,01,000.00 62. Rental income & advance from Shop No. 8, Khadar Navazkhan Rd. (Gem Court), Chennai for the period from July, 1993 to 30.4.1996 (Rs. 3600 x 34) + (Rs. 21600 as advance) 1,44,000.0 63. Amounts received towards Family Benefit Fund & Gratuity by Smt. J. Elavarasi during August & October, 1993 & June, 1994 on the death of her husband V. Jayaraman; 1,01,231.00 P.991, P.994 64. Net income from Maha Subhalakshmi Kalyana Mandapam, Arumbakkam, Chennai for the period from 8/1993 to 4/1996 14,50,097.60 P.1966 Grand Total 9,34,26,053.56 22. The Trial Court relied upon the oral and documentary evidence in respect of the said income and also the objections raised on behalf of the accused and thereafter came to the conclusion as follows: "Thus, answering the objections raised by the accused as above and in the light of the above discussion, my finding on the total income of the accused during the check period is as under: Total income computed as per Annexure III - Rs.9,34,26,053.56 Less: Item No.55 - Rs. 35,000.00 Less: Item No.60 - Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n in respect of M/s. Lex Property Development (P) Ltd., No.149, and 150, TTK Road, Chennai - 18 (Paid on 20.12.95) 1,45,320.00 P.51 PW.19 PW.20 12 Amount paid to Corporation of Madras for building plan at No.36, Poes Garden for additional construction (paid on 11.12.91) 12,700.00 P.58 PW.20 13 Amount paid to Corporation of Madras for building plan at No.5, Murugesan Street, T. Nagar, Chennai (Paid on 7.11.95) 70,140.00 P.54 PW.19 PW.20 14 Amount paid to Corporation of Madras for building plan (M/s. Jaya Publications) at No.19, Pattammal Street, proposed additions and regularization of the existing building (Paid on 3.3.93) 1,350.00 P-63 PW.20 15 Amount paid to Corporation of Madras towards sanction of building plan in respect of M/s. Jaya Publications at Plot No.S-7, Ganapathy Colony, Guindy Industrial Estate, paid on 19.3.92 99,295.00 P-55, 56 PW.19 16 Amount paid to Corporation of Madras for building plan at 226,735.00 P.48 to 50 & 59 PW.19 PW.20 Spl.C.C.208/2004 296 No.36, Poes Garden, Additional Block, (paid on 22.11.91, 7.12.92, 10.2.93 and 19.2.93) Rs. 2850.00 550.00 2,250.00 21,085.00 26,735.00 26,735.00 P.48 to 50 & 59 PW.19 PW.20 17 Amoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re of Tmt. N. Sasikala on 22.7.95 9,065.00 P.1519 P.1538 PW.201 . 31 Amount paid to V.G.Paneerdoss from CA 2196 of Canara Bank, Mylapore of Tmt. N. Sasikala on 6.11.95 13,450.00 P.1519 P.1539 PW.201 . 32 Amount paid to (Rajasekaran & Co.) Auditor from CA 2196 of Canara Bank, Mylapore of Tmt. N. Sasikala on 28.1.93, 28.3.95, 3.11.95 1,26,500.00 P.1519 P.1540 to P.1543 PW.201 . 33 Amount paid to Keerthi from CA 2196 of Canara Bank of Mylapore of Tmt. N. Sasikala on 11.12.92 6,633.00 P-1519 P.1544 PW.201 34 Amount paid to Khuzeema Manuwala from CA 2196 of Canara Bank Mylapore of Tmt. N. Sasikala on 14.12.92 7,165.00 P.1519, 1545 35 Amount paid to LIC of India on 31.3.93 and 30.3.94 from CA 2196 of Canara Bank, Mylapore of Tmt. N. Sasikala (13748.60 x 2) towards policy No.750405742 27,497.20 P-1519 PW.201 36 LIC premium paid for March '95 in Policy No.750405742 of Tmt. N. Sasikala 13,748.60 Ex.P.15 46 Doc.1013 Letter of LIC, Trichy Dt.23.4.92 37 Amount paid to United India Insurance on 31.3.93, 13.4.93, 4.8.93, 18.3.94, 24.3.95 and 17.4.96 from CA 2196 of Canara Bank of Mylapore of Tmt. N. Sasikala 1,02,039.00 P.1519 P.1548 to 1553 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... P-1382 P-1395 PW.201 53 Amount paid to Tvl. Kapoors from CA 2018 of Canara Bank Mylapore of Selvi J. Jayalalitha on 30.9.95 1,30,779.40 P-1382 P-1396 P-678 PW.118 PW.201 54 Amount paid to Tvl. Kapoors by cheque on 15.7.95 (Cheque No.082199 of Canara Bank) 12,721.00 P-1519 P-1554 P-678 PW.118 PW.201 55 Amount paid by cash to Tvl. Kapoors on 4.5.95 and 7.6.95 44,264.00 P-678 PW.118 56 Amount paid to Tr. Kishore from CA 2018 of Canara Bank Mylapore of Selvi J. Jayalalitha on 10.10.95 25,000.00 P-1382 P-784 PW.146 PW.201 57 Amount paid to tmt. Latha Krishnnamoorthy from CA 2018 of Canara Bank, Mylapore of Selvi J. Jayalalitha on 4.9.95 75,000.00 P-1382 P-1397 PW.201 58 Amount paid to MMWSS Board from CA 2018 of Canara Bank Mylapore of Selvi J. Jayalalitha 12.12.91 to 6.12.95 37,046.00 P-1382 P-1398 to 1411 PW.146 PW.201 59 Amount paid to Tr. G. Mohan from CA 2018 of Canara Bank Mylapore of Selvi J. Jayalalitha on 29.4.95 20,000.00 P-1382 PW.148 PW.201 60 Amount paid to Madurai Kamaraj University from CA 2018 of Canara Bank Mylapore of Selvi J. Jayalalitha on 21.7.93 5,00,000.00 P-1382 P-1412 PW.108 PW.201 61 Amount paid to N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,19,566.80 P-1382 P-1424 to 1432 PW.201 76 Amount paid to Salam Stores from CA 2018 of Canara Bank Mylapore of Selvi J. Jayalalitha from 9.7.91 to 6.12.95 12,73,642.00 P-680 P-1382 To P- 1452 PW.201 PW.120 77 Amount paid to Romaga Foam from CA 2018 of Canara Bank Mylapore of Selvi J. Jayalalitha from 9.7.91 to 6.12.95 75,352.00 P-1382 P-1453 PW.201 78 Amount paid to C. Sango from CA 2018 of Canara Bank Mylapore of Selvi J. Jayalalitha on 19.4.94 10,258.56 P-1382 P-1454 PW.201 79 Amount paid to SBKC Carrier from CA 2018 of Canara Bank Mylapore of Selvi J. Jayalalitha on 6.1.95 and 1.12.95 42,400.00 P-1382 P-1455 PW.201 80 Amount paid to SE, MEDC from CA 2018 of Canara Bank Mylapore Selvi J. Jayalalitha between 10.7.91 and 6.11.95 58,463.00 P-1382 P-1456 to 1462 PW.201 81 Amount paid to Tr. V.Selvaraj from CA 2018 of Canara Bank Mylapore of Selvi J. Jayalalitha on 29.7.95 and 2.12.95 13,000.00 P-1382 P-820 P-821 PW.152 PW.201 M.O.637 - Page 223 82 Amount paid to SMCS Ltd., from CA 2018 of Canara Bank, Mylapore of Selvi J. Jayalalitha on 29.11.95 8,017.25 P-1382 P-1463 PW.201 83 Amount paid to Tr. D.Swameswara Rao from CA 2018 of Canara Bank ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... PW.201 101 Amount paid to Devanathan Sweets, from CA 2018 of Canara Bank Mylapore of Selvi J. Jayalalitha on 23.5.97 18,042.00 P-1382 PW.201 102 Amount paid to Ganapathy Vilas from CA 2018 of Canara Bank Mylapore of Selvi J. Jayalalitha on 26.5.92 12,996.00 P-1382 PW.201 103 Amount paid to Hotel Akash from CA 2018 of Canara Bank Mylapore of Selvi J. Jayalalitha on 3.6.92 18,422.00 P-1382 PW.201 104 Amount paid to Jothi Ananda Bhavan on 4.6.92 from CA 2018 of Canara Bank Mylapore of Selvi J. Jayalalitha 8,840.00 P-1382 PW.201 105 Amount paid to Lakshmi Vilas from CA 2018 of Canara Bank Mylapore of Selvi J. Jayalalitha on 4.6.92 1,880.00 P-1382 PW.201 106 Amount paid to Master Bakery from CA 2018 of Canara Bank Mylapore of Selvi J. Jayalalitha on 27.5.92 9,091.50 P-1382 1476 PW.201 107 Amount paid to Sri. Jayaram Sweets from CA 2018 of Canara Bank Mylapore of Selvi J. Jayalalitha on 1.6.92 10,224.00 P-1382 P-1477 PW.201 108 Amount paid to Mayil Mark Mittai Kadai from CA 2018 of Canara Bank Mylapore of Selvi J. Jayalalitha on 1.6.92 39,000.00 P-1382 P-1478 PW.201 109 Amount paid to Nandini from CA 2018 of Canara Bank Mylapore of Selv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elvi J. Jayalalitha on 26.3.93 1,08,000.00 P-1382 P-1485 PW.201 126 Amount paid to Sacred Heart Higher Secondary School from CA 2018 of Canara Bank Mylapore of Selvi J. Jayalalitha on 8.9.92 1,00,000.00 P-1382 PW.201 127 Amount paid to Rama Anchaneya Trust from CA 2018 of Canara Bank Mylapore of Selvi J. Jayalalitha on 12.5.94 1,00,008.00 P-1382 X-12, 13, 14 PW.201 PW 110 128 Amount paid to Tamilaga Inipagam from CA 2018 of Canara Bank Mylapore of Selvi J. Jayalalitha on 1.6.92 27,000.00 P-1382 P-1486 PW.201 129 Amount paid to TNG Music Academy from CA 2018 of Canara Bank Mylapore of Selvi J. Jayalalitha on 21.12.91 1,00,000.00 P-1382 PW.201 PW.109 130 Amount paid to President of Thevar Peravai from CA 2018 of Canara Bank Mylapore of Selvi J. Jayalalitha on 3.1.94 1,00,000.00 P-1382 P-1487 PW.201 131 Amount paid to R.V. Tower from CA 2018 of Canara Bank Mylapore of Selvi J. Jayalalitha on 17.3.92 50,000.00 P-1382 P-1488 PW.201 132 Amount paid to Warla Trust from CA 2018 of Canara Bank Mylapore of Selvi J. Jayalalitha on 14.9.93 1,00,000.00 P-1382 P-1489 PW.201 133 Amount paid to Tamil Nadu Films from CA 2018 of Canara Bank Mylapore of Selvi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 24.1.96 14,313.00 P-1519 P-1569 PW.201 148 Amount paid to Corporation of Madras of MS from SB 23218 of Canara Bank Mylapore of Tmt. N. Sasikala on 20.6.92 1,393.95 P-1510 PW.201 149 Amount paid to R.O. Corporation from SB 23218 of Canara Bank Mylapore of Tmt. N. Sasikala on 5.9.91 1,858.60 P-1510 PW.201 150 (i) Amount paid in cash to M/s. Nathella Anjaneyalu Chetty and Sons, towards cost of Silver items for Puja purposes silver Kavacham for Vinayaga Idol situated in front of Poes Garden residence for Gold Polishing and blass plates on the main doors of Poes Garden and towards the cost of six gold necklaces during Sept to Nov. 1995. Rs. 1,52,000 (ii) Amounts paid to M/s. Nathella Anjaneyalu Chetty and Sons by cheque No.93293 and 93294 of Canara Bank Mylapore towards cost of two pairs of Gold Ear studs, studded with Diamonds (Vide bill No.45598 and 45599 - Rs. 4,36,978/-) 5,88,978.00 P-1510 P-1570 P-1571 P-2262 P-2263 PW.201 PW.238 PW.238 151 Amount paid to Tvl. N. Rajasekaran and Sons from SB 24621 of Canara Bank Mylapore of Tr. VN Sudhakaran on 28.1.93 30,000.00 P-1572 P-1574 152 Amount paid to United India from SB 24621 of Canar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -1618 P-1621 PW.201 169 Amount paid to Tr. P.V.Ravikumar from CA 2219 of Canara Bank Mylapore of Tmt. J. Elavarasi. On 28.9.94 1,000.00 P-1618 P-1622 PW.201 PW.114 170 Amount paid to Tr. Suresh Bhatia from CA 2219 of Canara Bank Mylapore of Tmt. J. Elavarasi. On 14.3.95 2,00,000.00 P-1618 P-1623 PW.201 171 Amount paid to Tr. R. Vijayan from CA 2219 of Canara Bank Mylapore of Tmt. J. Elavarasi. On 27.4.95 2,000.00 P-1618 PW.201 172 Amount paid to Tr. A- K.Vijaya Shankar from CA 2219 of Canara Bank Mylapore of Tmt. J. Elavarasi. On 5.4.95 20,000.00 P-1618 P-1624 PW.201 173 Amount paid to Milan Jothi from CA 2219 of Canara Bank Mylapore of Tmt. J. Elavarasi. On 21.3.94 12,500.00 P-1618 P-785 to 787 PW.201 PW.147 174 Amount paid to United India Insurance from CA 2219 of Canara Bank Mylapore of Tmt. J. Elavarasi. On 18.3.94, 24.3.95 and 27.3.96 21,494.00 P-1618 P-1625 PW.201 175 Amount paid to MMSWWB from CA 2219 of Canara Bank Mylapore of Tmt. J. Elavarasi. On 2.6.95 17,305.00 P-1618 PW.201 176 Amounts debited from CA 2219 of Canara Bank Mylapore of Tmt. J. Elavarasi towards cheque book and DD Commission etc., on different dates 1,203.00 P-1618 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... remitted by Selvi J. Jayalalitha for A-Y. 1988- 89 during 11/92 89,619.00 PW.215 PW.227 PW.228 190 Wealth tax remitted by Selvi J. Jayalalitha for A-Y. 1989- 90 during 11/92 2,68,475.00 PW.215 PW.227 PW.228 191 Wealth tax remitted by Selvi J. Jayalalitha for A-Y. 1990- 91 during 11/92 6,02,757.00 PW.215 PW.227 PW.228 192 Wealth tax remitted by Selvi J. Jayalalitha for A-Y. 1991- 92 on 23.11.92 7,18,542.00 PW.201 193 Wealth tax remitted by Selvi J. Jayalalitha for A-Y.1992- 93 on 23.11.92 13,51,590.00 PW.201 194 Income Tax remitted by Tmt. N. Sasikala for A-Y. 1991-92 during 2/93 2,23,750.00 PW.215 PW.227 PW.228 195 Income Tax remitted by Tmt. N. Sasikala for A-Y. 1992-93 during 2/93 3,00,550.00 PW.215 PW.227 PW.228 196 Income Tax remitted by Tmt. N. Sasikala for A-Y. 1993-94 during 13.3.96 7,62,151.00 PW.215 PW.227 PW.228 197 Wealth Tax remitted by Tmt. N. Sasikala for A-Y. 1991-92 during 2/93 14,240.00 PW.215 PW.227 PW.228 198 Wealth Tax reitted by Tmt. N. Sasikala for A-Y. 1992-93 during 2/93 1,17,955.00 PW.215 PW.227 PW.228 199 Expenditure by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 00 P-1109 PW.182 215 Amount paid to Tr. Durai Samy Nadar from CA 1171 of Indian Bank, Abirampuram of Tmt. J. Elavarasi on 8.11.95, 12.12.95, 7.2.96, 9.9.96 and 14.3.96 (Rs.13500 + 13150 + 27025 + 10800 + 27550) 92,025.00 P-1109 PW.182 216 Amount paid to Tmt. Lakshmi from CA 1171 of Indian Bank, Abirampuram of Tmt. J. Elavarasi on 4.12.95 591.60 P-1109 PW.182 217 Amount paid to Tr. D. Vimal Kumar from CA 1171 of Indian Bank, Abirampuram of Tmt. J. Elavarasi on 29.3.96 21,000.00 P-1109 PW.182 218 Amount paid to Supdt. Engineer from CA 1171 of Indian Bank, Abirampuram of Tmt. J. Elavarasi. On 24.1.96 1,434.00 P-1109 PW.182 219 Amount paid to telephone departments from CA 1171 to Indian Bank, Abirampuram of Tmt. J. Elavarasi. On 29.12.95, 24.1.96 and 23.3.96 (Rs.399 x 3 ) 1,197.00 P-1109 PW.182 220 Amount paid towards interest for T.O.D from CA 1171 of Indian Bank, Abirampuram of Tmt. J. Elavarasi. On 17.9.95 and 31.12.95 (Rs.6455 + 9715) 16,170.00 P-1109 PW.182 221 Amount paid to DD Commission and other charges from CA 1171 of Indian Bank, Abirampuram of Tmt. J. Elavarasi. On 19.10.95, 7.2.96, 9.2.96, 14.2.96, 15.3.96 and 31. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by P.W.D authorities) Rs. 5,21,23,532.00 b. Expenditure incurred towards cost of food, mineral water and thambulam (assessment based on available materials) Rs. 1,14,96,125/- c. 34 Nos. TITAN Watches purchased on cash payment. Rs. 1,34,565.00 d. Amount paid to Tr. Syed Bawker towards stitching charges for wedding dress of Tr. VN Sudhakaran - Rs. 1,26,000/- e. Amount paid for purchase of 100 silver plates (paid by Tmt. N. Sasikala) Rs. 4,00,000 f. Postal expenses for dispatch of 56,000 wedding invitations - Rs. 2,24,000 6,45,04,222.00 P-1019 P-1371 to P- 1376 P-1292 PW.181 PW.200 PW.192 PW.196 PW.238 PW.189 PW.228 227 Kodanad Tea Estate in S.No.168 of Kothagiri Village i. Expenditure incurred for 12,20,310.00 P-1964 P-1965 PW.205 - Foundation only - Rs. 7,00,000/- ii Expenditure incurred towards laying HDPE Pipes Rs. 5,20,315/- 228 Amount paid by Tmt. N. Sasikala to Tr. V.N. Kanniyappan, Proprietor, Lakshmi Marbles, Choolaimedu, Chennai - 94 towards the cost of marbles and blaze titles supplied to Sengamala Thayar Memorial College for Women at Mannargudi. 10,82,420.00 P-1382 P-1109 PW.190 229 Amount spent towards ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ards electricity consumption charges and deposits in respect of SC No.211-11- 273 of M/s. Jaya Publications for the period from 9/92 to 12-93 1,08,138.00 P-807 PW.149 242 Expenditure towards electricity consumption charges and deposits in respect of SC No.211-11- 303 of M/s. Sasi Enterprises at A-28, Industrial Estate, Chennai - 32 for the check period 58,889.00 P-808 PW.149 243 Expenditure towards electricity consumption charges of M/s. Anjaneya Printers (P) Ltd., in the name of the following service connections viz., i. M/s. Sastri Manufacturers, SC No.211-05-141 for the period 9/93 to 4/96 - Rs. 1,33,766/- ii. M/s. Sastri Manufacturers, SC No.211-05-142 for the period 9/93 to 2/95 (disconnected) - Rs. 1,447/- iii. M/s. Uni Offset Printers SC No.211-05-273 for the period 9/93 to 4/96 - Rs. 1,82,127/- iv. M/s. Amar Enterprises SC No.211-05-275 for the period 9/93 to 4/96 - Rs. 4,21,093/- 7,38,433.00 P-800 To 803 PW.149 244 Amount paid to (over and above the document value concerned in document No.282/94 dt. 27.6.94 of SRO North Madras) M/s. Fiesta Properties (P) Ltd., by M/s. Jaya Publications towards the cost of acquisition of flat at Door No.9899 of Luz Churc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h as household expenses (Item No.225 in the Chart) and the objections raised on such account on the ground of overlapping entries and it came to the conclusion that the argument of the learned counsel raising the objections cannot be accepted. After analyzing the oral and documentary evidence placed on record and the judgments cited before it, the Trial Court came to the following conclusion: "Prosecution has proved beyond reasonable doubt that as against the income of Rs. 9,91,05,094.75 and expenditure of Rs. 8,49,06,833.00 during the check period, A1 acquired and possessed in her name and in the names of A2 to A4 and in the names of the business enterprises acquired in their names immovable properties and pecuniary resources of the value of Rs. 53,60,49,954.00 which she could not satisfactorily account. Hence, acting u/Sec. 248 (2) of 896 Spl.C.C.208/2004 Cr.P.C., A1 is hereby convicted for the offence punishable u/Sec. 13 (1) (e) R/w. Sec. 13 (2) of 1988 Act. Prosecution has proved beyond reasonable doubt that, A1 to A4 were parties to criminal conspiracy with the object of acquiring and possessing pecuniary resources and assets to the extent of Rs. 53,60,49,954.00 beyond the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ir bank account and the proceeds thereof shall be appropriated and adjusted towards the fine amounts. If after adjustment, still the fine falls short, the gold and diamond ornaments seized and produced before the Court (after setting apart 7040 grams of gold with proportionate diamond jewellery), as observed in the body of the judgment shall be sold to RBI or SBI or by public auction to make deficit of fine amount good. The rest of the gold and diamond jewellery shall be confiscated to the Government. All the immovable properties registered in the names of Lex Property Developments Pvt. Ltd., Meadow Agro Farms Pvt. Ltd., Ramaraj Agro Mills Pvt. Ltd., Signora Business Enterprises (P) Ltd., Riverway Agro Products (P) Ltd., and Indo Doha Chemicals and Phramaceuticals Ltd., which are under attachment pursuant to G.O. Nos. M.S. 120 and 1183, shall be confiscated to the State Government. Out of the fine amount recovered as above, a sum of Rs. 5 crores shall be made over to the State of Karnataka towards reimbursement of the cost of trial conducted in the State of Karnataka. Furnish a free copy of the full judgment to the accused forthwith." 26. Being aggrieved, appeals were filed by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons Judge (Spl. Court for Trial of Criminal Cases against Kum.Jayalalitha & Ors.), Bengaluru, is hereby setaside. Appellants-Accused Nos.1 to 4 are acquitted of all the charges levelled against them. [ii] The Bail bonds of A1 to A4 are discharged. (B) The Appeals in Criminal Appeal Nos.17/2015, 18/2015, 19/2015, 20/2015, 21/2015 and 22/2015 are allowed in part. [i] Order of the Trial Court relating to confiscation of the properties both movable and immovable, is hereby set aside." 28. Assailing the judgment and order dated 11.05.2015, passed by the High Court of Karnataka at Bengaluru, appeals, by special leave, have been filed before this Court by the State of Karnataka and Mr. K. Anbazhagan. Although the State of Tamil Nadu was arrayed as the sole respondent in the appeals before the High Court, these appeals have been filed by the State of Karnataka, in view of the decisions of this Court in K. Anbazhagan Vs. State of Karnataka and Ors., reported in (2015) 6 SCC 86 and (2015) 6 SCC 158, wherein it was held that it is only the State of Karnataka (being the Transferee State) which is the sole Prosecuting Agency and was competent to appoint the Public Prosecutor. 29. We have g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re accepted and apparent errors therein including calculation and arithmetical errors as also error apparent on the face of the record are corrected, the disproportionate assets will be more than Rs. 35 crores and this alone is sufficient to sustain the conviction, according to him. Mr. Acharya has placed before us a Chart which is as follows: Sl. No. ERROR CORRECTIONS 1. CALCULATION ERROR The method of calculating D.A. is wrong. If all the findings of the high court is accepted in toto then the amount of D.A. is Rs. 14,38,93,645 i.e. 41.3% & not Rs. 2,82,36,36,812 i.e. 8.12% as held by the High Court - (The previous two charts have details of the same) 2. ARITHMETIC ERROR While totalling loans as income at (Pg.939 Vol IV), the High Court has committed an arithmetic error to the tune of 13.50 Crores. If this arithmetic error is alone corrected then the Disproportionate Asset come to Rs. 16,32,36,812/- i.e. 76.7% This is fully covered in Pg 1028-1030 - SLP Vol.IV 3. ADMISION OF ACCUSED Under Expenditure: Cost of Construction : The accused have admitted that the cost of construction incurred is Rs. 8,60,59,261 - Pg 2350 Vol IX. However the High Court values the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r at Pages 1224-1233 of Vol.V). According to the Trial Court, the income would be Rs. 9,91,05,094.75/- (appearing at Page 1396 of Vol. VI). However, the High Court has shown such income as Rs. 34,76,65,654/- (appearing at Pages 997-998 of Vol. IV). It is submitted that the High Court considered additional income under 7 heads and has increased the income to Rs. 34,76,65,654/-. 34. The High Court has shown the value of income from loan as Rs. 24,17,31,274/- which contains error of totalling and the sum total of these 10 items ought to be Rs. 10,67,31,274/-. Therefore, there is a totalling error of Rs. 13,50,00,000/-. He further contended that these loans as income cannot be taken into consideration as has been taken by the High Court. Since the prosecution has already considered such loans as income which appears at Annexure-III at Page 1228 Vol. V (Items 1-8) and expenditure at Annexure-IV (Page 1397 of Vol.VI, Items 1-8). He drew our attention to the High Court judgment regarding 10 loans, which would appear at Page 938-939, Vol. IV of the SLP Paper Book, which is as under: 1. Ex.P1027 OMTL-Indian Bank, Jaya Publications Rs.1,50,00,000.00 2. Ex.P1101 Agricultural M.D. Loan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at all. 38. Regarding the Loan of Rs. 25,00,000/- which is shown as Item No.4 in Annexure-III Exh.P-2329, Page 1224 of Vol. V (Income list) and Item No.5 of Annexure-IV, Exh.P-2330, Page 1397 of Vol. VI (Expenditure list), it is submitted by Mr. Acharya that this amount has been deposed to by PW-182 and marked as Exh.P-1161 to 1163 through him. He submitted that although the Bank had sanctioned Rs. 25 lakhs, it had released only a sum of Rs. 5 lakhs. The principal amount and interest has not been paid back by the firm. The Trial Court has discussed this loan at Page 1234 of Vol. V while dealing with income and at Page 1417 of Vol.VI while dealing with expenditure. Mr. Acharya submitted that this income has been duly considered and the High Court could not have taken the amount of Rs. 25 lakhs under this head. 39. Regarding the loan of Rs. 12,46,000/- J.S. Housing which is shown as item No.3 in Annexure-III Ext.-P 2329, Page 1224 of Vol. V, (Income list) and Item NO.4 in Annexure-IV Exh.P- 2330 Page 1397 of Vol. VI (Expenditure list), it is submitted by the learned counsel that this loan has been deposed to by PW-182 and marked as Exh.P-1171 to 1173 through him. He submitted that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not by Sudhakaran. It has been deposed to by PW-182 and marked as Exh.P-1330 through him. He submitted that the principal amount due under this account was Rs. 83,00,000 and the Trial Court's discussion on this loan is at Page 1234 of Vol. V while dealing with income and at Page 1418 of Vol.VI while dealing with expenditure. Therefore, Mr. Acharya submitted, this income has been duly considered and the High Court could not have taken a sum of Rs. 1.57 lakhs under this head. 43. Regarding the loan of Rs. 1,65,00,000/- by Ramraj Agro Mills Ltd. it is submitted by the learned counsel that this loan is not shown as an item in Annexure-III Ext.-P 2329, Page 1224 of Vol. V, (Income list) or as an item in Annexure-IV Exh.P-2330 Page 1397 of Vol. VI (Expenditure list). It has been deposed to by PW-182 and marked as Exh.P-1349-1354 through him. Exh.1354 is a statement of account of OCC-19 of Ramraj Agro Mills Ltd. PW-235 at 145 of Vol. 11 has stated of his knowledge about Rs. 1.65 crores being sanctioned. However, there is no evidence of disbursement of this loan amount. Mr. Acharya submitted that the amount due to the Bank on this account was Rs. 39,10,781/-, hence, the High Court could n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contended that significantly the accused are not pressing for remand of the case to the appellate Court (High Court). Consequently, the accused accept all the findings of the High Court. Of course, this Court will have to correct the calculation mistakes or arithmetic errors and also errors apparent on the face of the record. Reacting to the ingenious endeavour on the part of the respondents to maintain their acquittal by only assailing the errors committed by the Trial Court, while abstaining from questioning any finding of the High Court, the learned Public Prosecutor urged that the choice before the respondents was two-fold:- i) To treat all assets together as one unit and sustain the same, subject to this Court modifying the same by correcting calculations/mathematical errors as also considering admissions of accused and excluding illegal income as pointed out by the appellants at Chart No.6 (pages 18 to 20) which results in the figure of above Rs. 35.00 crores as disproportionate assets; or ii) to assail the findings of the High Court and request for a remand of the case to the High Court to hear the appeals filed by them in the presence of the State of Karnataka, which is t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Court appearing at Page Nos. 1838-2028 in Vol. 7 & 8 and submitted that there was no source of income of A2 to A4 and further A2 to A4 were not related to A1. Moreover, A2 to A4 resided with A1. 50. It is submitted that the properties standing in the name of A3; formation of large number of firms in the names of A2 to A4; opening of 50 bank accounts and transfer of funds from one account to another and cash credits into the banks shows that the origin of the resources is from A1. According to the prosecution, the other circumstances which disclose the conspiracy and abetment would appear from the following facts :- (i) General Power of Attorney was given by A1 to A2; (ii) Constitution of various firms; (iii) Operations of firms from residence of A1; (iv) Installation of A2 to A4 in the house of A1; (v) A1 had knowledge of capital investments into Sasi Enterprises; (vi) Flow of money from one account to another; (vii) Calling of Sub-registrars to the residence of A1 and properties were registered. 51. All these acts would come within the purview of the conspiracy and abetment between A2 to A4 with A1. Mr. Acharya submitted that all the circumstances mentioned above establi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... II, Pg 1588 Vol.VI). These properties were purchased at a cost of about Rs. 20 crores. * In respect of most of the sales it is A2 who had given directions as to the names of which firm/individual the sale was to be registered in (PW 159 - Rajagopalan in Vol 7 - Pg.19-124). * The amounts were paid from amongst the various accounts of the accused/firms/companies and cash. * Most of the Sale transactions have taken place below the Guideline value. PW 159 - Rajagopalan Vol.7 - Pg 19-124 PW 221 - R.Kesava Ramanujam Vol.10 Pg162-249 @ 172 * In many transactions, the vendor was not kept aware of the purchaser and the registrations took place through the registrars at the residence of A1. So also vendors were put under duress to sell their properties. Instances of officials also being put under duress were available. Evidence disclosed that A1 was aware of the transactions. * There were also additional or new constructions made and old buildings were also renovated at huge costs. 53. Mr. Acharya submitted that the Trial Court has categorized the assets at Page 1543 in Vol. VI. He furnished us the chart as follows:- CHART NO 10-A For convenient discussion of the issues involved in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ames of Purchasers being left blank) -Pg 1639 -Vol VII P.W 221 Kesava Ramanuj am Purchaser's name inser ted later - Pgs 17-18 of Chief. Exh- P 105-110 P.W - 56 Rajaram (500 Acres) -Pg 1643 - Vol VII P.W 159 Thiru Rajagopalan About going to Poes Garden and effecting various registrations. P.W-89 Peter Gr a i g Jones (Kodanadur Tea Estate - 900 Acres) 54. He also drew our attention to the particulars of these sales, which were furnished before us. The total sale price under these sale deeds comes to Rs. 19,77,18,164/- though according to the Trial Court the same is Rs. 20,07,80,246/-. The difference is marginal and it can be taken that immoveable properties worth about Rs. 20 (twenty) crores have been acquired during the check period. He submitted that to prove these sales, prosecution has examined about 60 Vendors and about 20 Sub-registrars. 55. He further contended that though according to DVAC there were 21 items, the Trial Court has taken only 18 out of them and the High Court has taken only 17 there from. Hence he submitted that the High Court has miscalculated the area of construction of 17 items as 1668.39 Squares, i.e. 1,66,839 S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the campus at No.1/240, Enjambakkam, in New Mahabalipuram Road .A1 116 668 1985.24 53,11,000/- 13. 183 New/Additional construction in building at Sea Shell Avenue No.2/1-B-3 Apartment Sholinganallore Saidapet, Taluk 116 669 1311.39 80,36,868/- 14. 184 New/Additional Construction in Building at Door No.19, Pattammal Street, Mylapore, Chennai 116 670 107.75 8,00,000/- 15. 181 New/Additional construction in 116 671 3527.5 7,24,98,000/- the residential building at D.No.36, Poes Garden, Chennai-86. 16. 174 New/Additional Construction in building at 5 B & C East Coast Road, Door No.4/130 Raja Nagar, Neelankarai, Chennai-41(Ref. Doc.No.4752/930fS .R.O. Adyar)Evaluation Report 117 673 1333.83 80,75,000/- 17. 191 New/Additional Construction in Buildings and the change of roof for the works she at MF-9, Guindy Industrial Estate, Chennai-32 117 674 274.69 (14,17,538) 15,45,000/- 18. 190 New/Additional Construction in Building at S.No.32/2-4, Plot Nos.S-7, Ganapathy Colony, Tr. Vi-Ka Indl. Estate, Guindy, Chennai-32 117 677 883.55 39,34,000/- 19. 301 Cost of renovation and additional constructi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of buildings at Rs. 8,60,59,261/- excluding one building of Anjaneya Printers. If the value of this construction of Rs. 2,13,63,457/- is added to this sum, the total will be Rs. 10,74,22,718/-. As can be seen from Chart 10 as reproduced above, under other items of assets IV to XII, the Trial Court has totally excluded the value of Sarees and footwear. Regarding Gold and Diamond jewellary also after detailed discussion at Pages 1756 to 1785, Trial Court has reduced the value from Rs. 5,53,02,334/- to Rs. 2,51,59,144/- and Silverwares from Rs. 48,80,800/- to Rs. 20,80,000/-. Regarding other items such as Fixed Deposits and cash balance in bank account, there can be no dispute. Therefore, the conclusion of the Trial Court regarding value of other assets is fully justified as per the evidence on record, he contended. 58. So far expenditure is concerned, the High Court has accepted the amount of expenditure fixed by DVAC in respect of all items except the marriage. The High Court has reduced the marriage expenditure from Rs. 6,45,04,222/- (as per prosecution) to Rs. 28,68,000/-, i.e., a reduction of Rs. 6,16,36,222. According to the prosecution, the total expenditure is Rs. 11,56,56, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ified. According to him, the Trial Court has considered every contention raised by the accused and if some of the contentions are not urged before the Trial Court, then the respondent cannot complain before this Court about nonconsideration thereof. 62. He further contended that if the contention of the appellants that in calculating Disproportionate Assets, the value of the Assets, Expenditure and Income of all the Accused have to be taken jointly along with that of firms and companies (34 in number), as done by both the courts below, then the explanation offered in the individual chart of A1 and the combined chart given by A2 to A4 will be of no effect and the same do not deserve to be taken note of. The accused have deliberately given their explanations separately as they cannot give any satisfactory explanation if the assets are taken jointly. 63. In refutation, learned senior counsel appearing for A1 submitted that the Trial Court wrongly excluded from consideration the Income Tax Assessment Orders in favour of the accused by relying upon the judgment of High Court of Patna in State of Bihar Vs. Lalu Prasad & Anr., (2008) Crl.L.J. 2433, which, according to him, is clearly in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... initial burden beyond reasonable doubt, the onus then shifts to the accused to satisfactorily account for the source of such income. He further contended that for the accused, the standard of proof is one based on preponderance of probabilities and it is sufficient for the accused to provide a plausible explanation that is satisfactory to the Court. In support of his contention, the learned senior counsel relied upon the following decisions: V.D. Jhingan Vs. State of Uttar Pradesh - (1966) 3 SCR 736 State of Maharashtra Vs. Wasudeo Ramchandra Kaidalwar - (1981) 3 SCC 199 Mr. Krishna Reddy Vs. State, Deputy Superintendent of Police, Hyderabad - (1992) 4 SCC 45 Amba Lal Vs. Union of India - (1961) 1 SCR 933 K. Veeraswami Vs. Union of India & Ors. - (1991) 3 SCC 655 Prithipal Singh & Ors. Vs. State of Punjab & Anr. - (2012) 1 SCC 10 66. He further contended that in establishing the link between the alleged benamdar and the public servant, the standard of proof required is direct evidence or circumstantial evidence of a clinching nature, which has to be strictly discharged by adducin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s also accepted the income tax orders while deciding the cases under the 1988 Act. This Court has relied upon the following decisions: * Mohd. Mumtaz Vs. Nandini Satpathy (II) - (1987) 1 SCC 279 * State of M.P. Vs. Mohanlal Soni - (2000) 6 SCC 338 * Ananda Bezbaruah Vs. UOI - (1994) Crl.L.J. 12, para 8-14 * M. Krishna Reddy (supra) * State of A.P. Vs. J. Satyanarayana, JT 2000 (10) SC 430 * DSP, Chennai Vs. K. Inbasagaran, (2006) 1 SCC 420 * Kedari Lal Vs. State of Madhya Pradesh & Ors., (2015) 14 SCC 505 70. On the basis of above, the learned senior counsel submitted that under the 1988 Act the burden on the accused is proved by preponderance of probabilities as in a civil case and same is the degree of proof required under the Income Tax Act also. Therefore, where the assessee had established the income and the extent of the expenditure before the Income Tax authorities, the judicial decision thereunder would be binding on the prosecution in a case under the 1988 Act. Hence, he submitted that the judgment of the Trial Court on this question is wrong. 71. Having regard to the various evaluations relied upon by the prosecution, as he mentioned that in law, the expert evide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... total cost was Rs. 13,65,31,901/- and according to the accused as determined by the Income Tax authorities it is Rs. 3,62,47,700/-. Hence, he submitted that deduction of Rs. 10,02,84,201/- is required. He further pointed out that there are fundamental defects in the prosecution evidence in relation to the valuation of all the construction because measurement is not verifiable, age of the building is not given, there is no basis for calculating the price of non-scheduled items. As per prosecution's calculation the cost under the head new/additional construction in Grape Garden Farm House is Rs. 6,40,33,901/- while as per A1 this cost is Rs. 1,39,62,300/-. Therefore, he submitted that an amount of Rs. 5,00,71,601/- should be deducted. 75. According to the learned senior counsel, the prosecution has examined PW-98 M. Velayudam, PWD Engineer (Vol.4 Page 148-179) and marked his Report Exh.P-645 (Vol.33 Page 86-112). He submitted that the evidence of PW-98 should be rejected since there are three major defects in his evidence. He further pointed out that his report is unreasoned and cannot be relied upon. The entire evaluation of electrical appliances by Mr. Udaya Suriyan, Asstt. Electr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the total jewellery as on 31.3.1991 which was 21.280.300, was valued at Rs. 1,50,56,146/- and there is no addition to the jewellery in that year. The above figure was arrived at on the basis of increase in value of gold and as per report of the registered valuer being Exh.P-860. Therefore, it is indisputable and as per the prosecution document abovementioned, being Exh. P-2180, and also wealth tax assessment orders and evidence of PW-227 and PW-213, it would be evident from Exh. P-1016, Vol.57, Page 186-187, the total gold jewellery owned and possessed by A2 as on 31.3.1991 was 1,912.150 gms. Therefore, the total jewellery comes to about 23,192.450 gms. It is further stated that A1 in her capacity as General Secretary of the AIADMK Party, got 3,365.800 gms. of gold Mementos which should be added to the total holding of A1 and A2. From Exh.P-704, Vol. 36, at 253-292, it would be evident that the total weight of the gold jewellery seized was 26,902.08 gms. which included mementoes. Therefore, he submitted that there is insignificant difference of 343.830 gms. According to him this difference might have arisen out of faulty weighment. He further submitted that the valuation of the j ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k period was Rs. 2,49,28,815/. As per the Trial Court's judgment its value is Rs. 8,49,06,833/- (Page 1542 Vol.VI) and the findings of the High Court which has been placed before us is at Pages 889-831. He drew the attention of this Court specifically to the following particulars with regard to the Marriage of Tr. V.N. Sudhakaran: * Prosecution's Valuation - Rs. 6,45,04,222.00 * A1's case - Expenditure incurred by A1 for the marriage - Rs. 28,68,000.00 * Value as per Trial Court Judgment - Rs. 3,00,00,000 (Page1452-1542 Vol.VI). * Value as per the High Court Judgment - Rs. 28,68,000.00 (Pages 889-931) The Prosecution value of Rs. 6,45,04,222.00 was split up by the prosecution itself in Item 226 of Annexure IV as follows: a) Expenses towards erection of marriage pandal, over and above admitted/recorded payments - Rs.5,21,23,532/- b) Expenditure towards cost of food, mineral water and tamboolam - Rs.1,14,96,125/- c) Cost of 34 titan watches (disallowed by the Trial Court) - Rs.1,34,565/- d) Amount towards stitching wedding dress for A3 Rs.1,26,000/- e) Amount for purchase of 100 silver Plates (paid by N. Sasikala) - Rs.4,00,000/- f) Postal expenses for dispatchi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the difference in estimated Grape Garden income between the prosecution and A1 is Rs. 46,71,660/-. The prosecution has cited the income from the Grape Garden during the check period to the extent of Rs. 5,78,340/- instead of Rs. 52,50,000/- as computed by A1. While the Trial Court has concurred with the prosecution, the High Court has accepted the case of A1 and allowed an addition to the extent of Rs. 46,71,660/- in respect of the income of A1 from Grape Garden. It is further submitted that the agricultural income of Rs. 52,50,000/- requires to be taken as income available to A1 during the check period. According to the learned senior counsel, A1 has fully proved the receipt of agricultural income and the High Court has also accepted this. 86. With regard to the interest income of A1, the prosecution has allowed the same to the extent of Rs. 58,90,925/- instead of Rs. 77,40,135/- as claimed by A1 on the basis of amounts declared and assessed in Income Tax Returns/Assessment orders. The Trial Court has concurred with the prosecution and disallowed interest income of A1 amounting to Rs. 18,49,210/-. 87. According to A1, the rental income was Rs. 2,32,000/- per annum from 1.7.1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ipt under the said deposit scheme, A1 produced Income Tax returns and independent evidence from subscribers to probabilise and prove receipt of money. The money received under the scheme from 1990 to 1996 was deposited in the bank account of Namadhu MGR or in the account of Jaya Publication. It is submitted that the Income Tax authorities accepted the said scheme of deposit. According to the learned senior counsel, there was a scrutiny of the account of Jaya Publication and Namadhu MGR by an internal auditor of the prosecution department and a report was filed. Yet the auditor was not examined nor his report was marked in evidence. It is submitted that an adverse inference ought to be drawn against the prosecution evidence on account of suppression of the material evidence. It is submitted that the Trial Court committed glaring errors while dealing with the scheme deposit claim of Jaya Publication. The learned counsel submitted that the accused had produced the order of the Income Tax authorities relating to the scheme deposit covering the entire check period of 5 years which was overlooked by the Trial Court. According to him, the drawing of A1 from Jaya Publication in her capacit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - is liable to be excluded. 93. The learned senior counsel submitted that conspiracy, though can be inferred from circumstances, in this case, the mere fact that A1 to A4 were residing in the house belonging to A1 cannot be a circumstance to prove conspiracy. According to him, A1 and A2 were partners in two partnership firms and such partnership connection cannot be an incriminating circumstance. According to him, A1 to A4 have purchased properties with their own efforts, with the money earned or mobilized by them. Accordingly, it is submitted that the prosecution has not established any circumstance from which an inference of conspiracy can be drawn. There is no circumstance proved in this case by the prosecution from which a conclusion can be drawn that there was meeting of minds of A1 to A4 with a view to enable A1 to commit an offence under Section 13(1)(e) of the 1988 Act. He further submitted that during the check period, starting of a firm by a non-public servant could never be a circumstance by itself to infer conspiracy. Hence, it is submitted that there is no direct or indirect evidence in the form of proved circumstance to infer conspiracy. Hence, it is submitted that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 18.06.1989 Sale deed M/s Jaya Publications ( Selvi J.Jayalalitha and Tmt. N. Sasikala) 5,70,039 I 7 Land and Building Thiru Vi KA Industrial Estate Guindy in S.No,55, 56 Block No.V1 extent 5658 sq.ft shed No.C-8 Adyar village 08.12, 1990 Sale deed M/s Jaya Publications ( Selvi J.Jayalalitha and Tmt. N. Sasikala) , 5,28,039 I 17 Cash balance as on 1.7.91 CA No 1952 Canara Bank , Mylapore Account opened on 23.10.89 Namadhu MGR 5,51,826 I 26 Cash Balance as on 1-7-1991 in Canara Bank Mylapore CA 2047 opened on 26-9-90 on transfer from Kellys Branch in the Name of Selvi J. Jayalitha and Tmt.N.Sasikala 07-01-1991 M/s Jaya Publications ( Selvi J.Jayalalitha and Tmt. N. Sasikala) 7,83,861 1 28 Fixed Deposit No,451/90 dated 19,6,1990 with Canara Bank, Mylapore FDR dt 19.06.1990 M/s Jaya Publications ( Selvi J.Jayalalitha and Tmt. N. Sasikala) 64,520 1 29 TOTAL 24,98,285 SASI ENTERPRISES Description of the Property Reference of Document - Sale deeds Stands in the Name of Value of the property Rs. Annexure No. Item No in Annexu re I &n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pect thereof, which is hereunder:- A1 ANNEXURE-I PROPERTIES ACQUIRED BY ACCUSED NO.2 PRIOR TO CHECK PERIOD NOT TAKEN INTO ACCOUNT BY DVAC S. No. Description of property Value Exhibits and Evidence relied by Accused 1 As per Balance Sheet for the Assessment year 1991- 1992 ending on 31.3.1991 the Cash Balance Available with Accused No.2 4,35, 622 DW 88 (Vol No.92, Page 105-176) Ex-D-287 (VolNo.157, Page 1-5) The properties value of A2, Jaya Publication, Sasi Enterprises in Annexure - I, According to DVAC was Rs. 59,29,168.00 Cash balance available on hand as on 1.7.1991 and the advances paid lying pending adjustment as on 1.7.1991 As per Ex.P-2191 the amount available as on 31.3.1991 by A2 is Rs. 4,35,622/- which was not taken into Account by DVAC Rs. 4,35,622.60 Hence the balance available on hand as on 1.7.1991 has to be treated as a Source/Income available to A2 during check period and considered in Annexure III Rs.4,35,622.60 Hence the Assets value of A2 prior to check period should be taken into Account as Rs.63,64,790.60 96. He further submitted that properties acquired by A2 to A4, firms & companies at the end of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 Sale deed Tmt. N. Sasikala Ex P-782 (Pg. 128. 129,. Vol. 39) and D-287 - IT return (1991 -92) Pg. I - 5 of Vol. 157) 5,85,420 II 15 (also listed as 301) Land and Building to the extent of 25035 sq.ft. in S.No.93,94 and 95 of Mannargudi village Haridranadhi west street - PW 138 & PW -99 22-8-1991 Sale deed Tmt. N. Sasikala Ex-P-646, Pg. 113 -124 of Vol. 33 & P1510 (SB A/c 23218 opened on 23,05.90) (Pg. 235 - 248, vol. 61) 6,78,000 I I 19 Land and Building at Door No. 16 IppaBabi (Radhika Nagar) Anjaiah Garden Boosaredddey Guda Road, Secundarabad Contonment, S.No.49 and 50 Land Extent 222.92 sq. mt. Building area 2200 sq.ft.PW - 163 - SRO - Srinivasa Rao 25-3-1992 Sale deed Tmt. N. Sasikala Ex-P-1510, Pg. 235 -248 of Vol. 61 & Ex-P 935, Pg. 235 - 242 Vol. 55 Ex-P-1513 & 1514, Pg. 253 - 254 & 255 -256 of Vol. 61. - DD challans for payment to Jaspal 5,57,761 I I 22 Cost of acquisition of shares of M/s. Anjeneya Printers (P) Limited at No. 48 Inner Ring Road, Ekkattuthangal, on 19-93 ( Towards transfer of shares of Rs. 64,05,000/- machinery cost of Rs, 20,16,000 from Tr. Naresh Shroff - PW 15 01-09-1993 Sale deed Tr.V.N. Sudhakkaran and Tmt. N. Sasikala Ex- P- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... I 42 PW - 31 - Ratnavelu PW * 32 * Babu PW-39-Venu-S.R.0 PW - 47 - Muthaiah 4.41 Acres of dry Land in S.N0.198 of Velagapuram Village - PW 31, PW 35 & PW 39 28-10-1993 Sale deed Tmt. N. Sasikala Ex- P-87, Pg. 201 - 209 of Vol. 21 37,385 II 43 PW - 31 - Ratnavelu PW * 32 * Babu PW-39-Venu-S.R.0 PW - 47 - Muthaiah 1.42 Acres of dry Land in S.No.198 of Velagapuram Village - PW 31, PW 39 & PW 42 28-10-1993 Sale deed Tmt. N. Sasikala Ex - P-94, Pg. 27 - 37 of Vol. 22 12,060 II 44 PW - 31 - Ratnavelu PW * 32 * Babu PW-39-Venu-S.R.0 PW - 47 - Muthaiah 4.41 Acres of dry Land in S.N0.198 of Velagapuram Village - PW 31, PW 36 & PW 39 28-10-1993 Sale deed Tmt. N. Sasikala Ex- P-88, Pg. 210 * 220 of Vol. 21 37,410 II 45 PW - 31 - Ratnavelu PW * 32 * Babu PW-39-Venu-S.R.0 PW - 47 - Muthaiah 4.41 Acres of dry Land in S.N0.198 of Velagapuram Village 28-10-1993 Sale deed Tmt. N. Sasikala Ex * P-89, Pg. 221 - 230 of 37,410 II 46 PW - 31 - Ratnavelu PW * 32 * Babu - PW 37 & PW 39 Vol. 21 PW-39-Venu-S.R.0 PW - 47 - Muthaiah 1.42 Acres of dry Land in S.No.198 of Velagapuram village - PW 31 & PW 39 28-10-1993 Sale deed Tmt. N. Sasikala Ex - P-95, P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,42,000 II 127 One sixth undivided shares of land in 5 grounds and 11333sq.ft. in s.no.3334/1a in Mylapore Iuz Avenue - PW 43 & 21-3-1995 Sale deed Tmt. N. Sasikala Ex-P-105, Pg. 97. 103 - Sale deed, Ex-P1519, Pg. 263-276 of Vol. 61 - CA 10,87,196 II 155 PW 159 2196 Payment dated 21.03.1995 with Rs. 7.50 lacs + Rs. 1.50 Lacs Cost of acqusition of Luz avenue property other than the consideration covered by document Nos.241/95 to 252/95 of S.R.O.North Madras for the purpose of clearing the loan that stood in the name of properties in the Indian Bank Abiramapuram - PW 43, PW 44 and PW 45 PW-43 denied of having received by cash No document and already argued 76,00,000 II 159 2.03 acres in S.N0.385/12.385/13 385/14 in Payanoor Village - PW 41 & PW 159 19-7-1995 Sale deed Tmt. N. Sasikala Ex-P-1510, Pg. 235 - 248 of Vol. 61 -*(SB A/c 23218 opened on 23.05.90) Ex-P-1518, Pg. 261-262 of Vol. 61 - DD paid; Ex-P-1631, Pg. 52-53 of Vol. 62 -Cheque paid; Ex-P104, Pg. 92-96 of Vol.22 3,44,195 II 170 2.34 acres in S.No. 385/7, 8, 9 386/1a, I b, lc. ld,386/2 in Payanoor Village - PW 41 & PW 159 19-7-1995 Sale deed Tmt. N. Sasikala Ex-P-912S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 58 & PW 69 19-12.1994 M/s. Metal King sole Prop. N.Sasikala ExP-236, Pg. 28 of Vol. 25 & P-286, Pg. 110 of Vol. 25 2,22,485 II 253 TN 09 B 6966 Bajaj Tempo Omni Bus - PW 59 & PW 69 19.04-1991 M/s. Metal King sole Prop. N.Sasikala ExP-242, Pg. 40 of Vol. 25 & P-288, Pg..112 of Vol. 25. 2,03,979 II 254 TN 09 B 6975 (Bajaj Tempo van) - PW 59 & PW 69 19-04-1991 M/s. Metal King sole Prop. N.Sasikala Ex-P-241, Pg. 38-39 of Vol. 25 & P-287, Pg. 111 of Vol. 25 2,03,979 II 257 62 items of Jewels claimed to be of Tmt. N. Sasikala as evaluated by M/s. VBC Trust on 31.3.1991 - PW 179 As per evaluation report of M/s, VBC Trust on 31-3-1991 Tmt. N. Sasikala Ex-P-1014, Pg. 181-183 of Vol. 57 & P.1015, Pg. 184 -185 of Vol. 57 (Before the check period) 9,38,460 II 285 34 items of Jewels purporting to be Tmt. Sasikala as evaluated by M/s. VBC Trust on 16-1-1992 - PW 179 Evaluation Report dated 16-1.1992 Tmt. N. Sasikala Ex-P-1016, Pg. 186-188 of Vol. 57 (Before the check period ) 17,54,868 II 287 Machinery subsequently purchased for M/s. Metal King - PW 115 Evaluation Report M/s. Metal King sole Prop. N.Sasikala - Ex-P-665 7,69,000 II 293 Cash Balance as on 30-04 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d No. 381 of Northern row of Luz Church Road, Mylapore R.S. No. 1639/5 - PW 30 and PW 159 27-06-1994 Sale deed M/s Jaya Publications ( Selvi J.Jayalalitha and Tmt. N. Sasikala) Ex-P-1903 - CA 2047 - Canara Bank Ex-P-1933 & 1934 - Payment details and Ex-P-79 & 80 2,26,130 II 83 4564 sq.ft. of site and building in T.S.No. 2 and T.S.No.18 Block No. 22 which is called No,l Parameswari 15-11-1994 Sale deed M/s Jaya Publications (Selvi J.Jayalalitha and Tmt. N. Sasikala) Ex- P-79 & P-80 34,20,160 II 104 Nagar , Urur Village- PW 23, PW 159 & PW 201 including stamp chgs Ex-P1926 & 1927 - DD copy and Ex-P1020 - CA -792 of JP with Indian bank New additional construction in Building at door No. 19 Pattammal St. Mylapore Chennai - PW 116 Evaluation Report M/s Jaya Publications (Explained that the value of shed is Rs. 6,42,290/- and hence balance of Rs. 1,57,710/- to be excluded) Ex-P-670 - Report 8,00,000 II 184 New / additional construction in Building at S.No.32/2-4 Plot No. S-7 Ganapathy colony Thiruvika Industrial estate Guindy Chennai 32 - PW 117 Evaluation Report M/s Jaya Publications (Explained that the value of building constructed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vi J.Jayalalitha and Tmt. N. Sasikala) Ex-P1903 - CA 2047 Canara Bank Ex-P255 (Invoice) Ex-P-258 (Registration) ExP-I936 to 1938- Payment to Vendor Bharat Industries 32,40,278 I I 299 Cash balance as on 30.4.96 CA No 1952 Canara Bank, Mylapore - PW 201 30-4-1996 Namadhu MGR = Ex-P-1635- CA 1952-Canara Bank 5,10,968 II 304 TOTAL 4,07,74,157 SASI ENTERPRISES Description of the Property Reference of Document Stands in the Name of Value of the property Rs. Ann exu re No. Item No in Annexure II Shop No.14, Ground Floor at 602, Anna Salai, Chennai-6 (Parsn Manere) M/s.Sasi Enterprises (Doc No.399/89 dt.5-7-89 of SRO, Thousandlights) 05-07-1989 (Prior to the check period) Sale deed M/s. Sasi Enterprises Partners Selvi Jayalaitha and Tmt. N. Sasikala 98,904 II 8 Undivided share of land only at Door No.14, Kather Navaz Khan road, Nungambakkam, in Block No.12, R.S.No.58/5 to the extent of 68/12000 undivided share in 11 Grounds 736 Sq.ft with a Shop No. 9 M/s. Sasi Enterprises (Doc No.526/89 dt.21-9-89 of Jt. S.R.II, Thousandlights) * PW 113 for rent (Mohsin Bijapuri) 20-09-1989 (Pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 1475 sq.ft. in R.S.No. 3581 part in Mylapore Village Door No. 18 East Abiramapuram 1111 street - PW 4 (Refer to Page 2 - 22-01-1993 Sale deed MIs. Sasi Enterprises - Partners Selvi Jayalaitha and Tmt. N.Sasikala ExP-1940 - CA -2061 of SE with Canara bank Ex-P-23 - Sale deed Ex-P-1519 - CA -2196 of NS with Canara Bank 49,02,105 II 26 Ramachandran) 72/12000 share of 11 grounds 1736 sq.ft. in R.S.No.58/5 e 14, Gems Court , Kather Navaz Khan road, Nungambakkam - PW 137 28-7-1993 Sale deed M/s. Sasi Enterprises - Partners Selvi Jayalaitha and Tmt. N. Sasikala Ex- P-1940 - CA -2061 of SE with Canara bank Ex-P768 - Sale deed dt 30.6.93 160,572 II 32 (Rs.50,000/- paid on 23.4.90 i.e. prior to check period) 4380 sq.ft. land with 520 sq.ft. house In S.No. 588/2A, 2 B in Thiruvenkada Nagar Colony - PW 17 - Mrs.Sundari Shankar; PW 159 (Rajagopalan) & PW 161 (Ramesh) 26-09-1994 Sale deed M/s. Sasi enterprises Ex-P-46 Ex-P- 1940 - CA -2061 of SE with Canara Bank 2,65,000 I I 91 (Rs.52,205/- excess amount to be deleted) 4380 sq.ft. land with 520 sq.ft. house In S.No. 588/2A, 2 B in Thiruvenkadu Nagar colony - excess amount paid to selle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 270-Pg 1561Ex-P-237 (Invoice)- Ex-P- 280 (Registration) 5,25,132 II 247 TOTAL 2,80,05,857 GREEN FARM HOUSE Description of the Property Reference of Document Stands in the Name of Value of the property Rs. Ann exu re No. Item No in Annexure II 16.75 cents in S.No.1/If and old R.S.No. 1/1c4 of Sholinganallore Village - PW 16 - (Jagadeesh A Raja) 03-09-1994 sale deed Tr.VN.Sudhakaran (Partner in Green Farm House) Ex-P-43 to 45 - Sale agreement & POA Ex-P-1189 - CA No.I058 of Indian Bank 125 I I 69 6.75 cents on 8.3.1994 - PW 16 - (Jagadeesh A Raja) 189/1994 dt 9-3-1994 Sale deed M/s. Green Farm House Ex-P-1189 - CA No.1058 of Indian Bank. Rs. 235000/- is to be admitted 570200 , , II 70 Cash portion of Rs. 335000/- to be excluded 16.50 cents in S.No.1/1f and old R.S.No. 1/1c4 of Sholinganallore Village - PW 16 - (Jagadeesh A Raja) 09-03-1994 Sale deed Tr.VN.Sudhakaran ( Partner in Green Farm House) 125 II 71 Actual consideration paid to Tmt. Gayathri chandran W/o K.T. Chandaravadanam, 22, Bazullah Road Chennai -17 By DD Rs. 530400/- and by cash Rs. 335000/- on 8/3/1994 - - PW 16 . (Jagadeesh A Raja) 09-03-1994 Sale d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reference of Document Stands in the Name Of Value of the property Rs. Ann exu re No. Item No in Annexure II 1.29 acres ub S.No.18/4a1 of Enjambakkam Village - PW 25 - Bhandari .P.B - to read chief 25-2-1994 Sale deed M/s. J. Farm Houses Ex-P-73 Ex-P-1207 - CA No.1054 of Indian Bank. 6,49,770 II 68 50 cents in S.No.2/1b, 3a in Solinganallur Village - PW 24 - Daniliwala.T.K. 12-12-1994 Sale deed M/s. J. Farm Houses Ex-P72 - POA Ex-P-1207-CA No.1054 of Indian Bank. Ex. P-909 sale deed 09.12.1994 2,86,441 II 110 New additional construction in Building at Sea Shell Avenue No.2/1-B-3 apartment Sholinganallore Saidapet Taluik - As explained As per Evaluation Report M/s. J. Farm Houses Ex-P- 72 - POA Ex-P-1207 - CA No.1054 of Indian Bank.Ex. P-909 Sale deed 09.12.1994 Value admitted is Rs. 48,10,670/- 80,36,868 II 183 (Value to be excluded is Rs. 32,26,198/-) New additional construction in residential building (4 Nos) in the campus at No.1/240 Enjabakkam in New Mahabalipuram Road - As explained As per Evaluation Report M/s. J. Farm Houses Value admitted is Rs. 29,82,392/- 53,11,000 Il 188 (Value to be excluded is Rs. 23,28,608/-) &nb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as on 30/04/96 in CA 1062 of IB Abiramapuram in 30-4-1996 M/s. J S Housing Corporation Ex-P-1170-CA No.1062 of Indian Bank 13,672 II 218 TOTAL 41,35,497 JAYA CONSTRUCTION (CONTRACTORS AND BUILDERS) Description of the Property Reference of Document Stands in the Name of Value of the property Rs. Ann exu re No. Item No in Annexure II I/6th undivided shares of land in 5 grounds and 1133 sq.ft. in S.No.3334/1a of Luz Avenue 21-3-1995 Sale deed M/s. Jaya Contractors and Builders Ex-P-110 - Sales deed Ex-P-1049-CA No.1049 of Indian Bank 10,87,196 II 158 Cash Balance as on 30/4/96 in CA 1049 of IB Abiramapuram Opened on 27/1/94 30-4-1996 M/s. Jaya contractors and Builders Ex-P-1049 - CA No.1049 of Indian Bank 10,891 II 220 TOTAL 10,98,087 KODANAD TEA ESTATE - PURCHASE Kodanad tea estate and tea factory extent two acres at kthogiri, Nilgris district acquired on an unregistered reconstitution of partnership deed dt. 5/6/1995 payment through six 05-05-1995 Reconstituti on deed Tmt. N.Sasikala, Tmt. J. Elavarasi, and.V.N. Sudhakaran Ex-P-520 & P- 523 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... N.Sudhakaran 93,475 II 79 One sixth undivided share of land in 5 ground and 1133 sq.ft. in S.No.3334/a of Luz Avenue 21-3-1995 Sale deed Tr. VN.Sudhakaran 10,87,196 II 153 1. Expenditure towards acquistion of Indo-Doho Chemicals and Pharmaceuticals Ltd. at Cuddalore Tr. Ayyadurai promotor of Indo-Doho Pharmaceuticals Rs. 35,45,000/- To interfacecapital Market shares 24,05,000/- to Ind Bank-22,41,000/- Tr. VN.Sudhakaran 86,91,000 Il Cash Balance as on 30-4-96 in CA 1068 of IB Abiramapuram opened on 30-3-1994 30-4-1996 Tr. VN.Sudhakaran 1,32,221 II 197 Cash Balance as on 30-04-96 in Cb, Mylapore CA 2220 Opened on 7-4-1993 in the name of 30-4-1996 Tr. VN.Sudhakaran 47,453 II 206 Cash Balance as on 30-04-96 in CB Mylapore SB 24621 opened on 25-2-92 30-4-1996 Tr. VN.Sudhakaran 61,430 II 208 TN 09 E 9027 (Ashok Leyand Cargo vehicle) 19-12-1994 Tr. VN.Sudhakaran 5,05,009 II 248 TN 01 09 f 3744 (Tarx Jeep) 29-05-1995 Tr. VN.Sudhakaran 2,96,191 II 249 TOTAL 1,19,89,961 TMT. J. ELAVARASI - Accused No.4 Description of the Property Reference of Document Stands in the Name of Value of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and natural guardian Tmt. J. Elavarasi No.7 East Beach Road, Neelankarai, 44,210 II 56 Chennai 41 3 acres 51 cents in S.No.43/2 in Karunkuzhipallam village 15-09-2014 Sale deed J. Vivek (minor) Represented by his mother and natural guardian Tmt. J. Elavarasi No.7 East beach Road, Neelankarai, Chennai- 41 1,58,310 II 87 4 Acres 52 cents in S.No.46 in Karunkuzhipallam Village 15-09-2014 Sale deed J. Vivek ( minor) Represented by his mother and natural guardian Tmt. J. Elavarasi No.7 East beach Road, Neelankarai, Chennai 41 2,03,510 II 88 4 Acres 15 cents in S.No.45 in Karunkuzhipallam Village 15-09-2014 Sale deed J. Vivek (minor) Represented bY his mother and natural guardian Tmt. J. Elavarasi No.7 East beach Road , Neelankarai, Chennai 41 1,86,356 II 89 4 Acres 15 cents in Karunkuzhipallam Village 15-09-2014 Sale deed J, Vivek (minor) Represented by his mother and natural guardian Tmt. - J. Elavarasi No.7 East Beach Road, Neelankarai, Chennai 41 1,86,226 II 90 cash Balance as on 30/4/96 in the SB 4110 of Indian Bank Abiramapuram opened on 12/9/94 in the name of Master J. Vivek, s/o. J. Elavarasi 30-04-1996 J. Vi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... njaneya Printers P Ltd 3,19,230 II 52 1/5th Share of 1 ground and 1086 Sq.ft. together with a super structure in S.No.301, 4725/16 in 21, Padmanaban Streetm T Nagar New T S No.8025/1 Block No. 107 17-1-1994 Sale deed M/s. Anjaneya Printers P Ltd 3,19,230 Il 53 1/5th Share of 1 ground and 1086 Sq.ft. together with a super structure in S.No.301, 4725/16 in 21, Padmanaban Streetm T Nagar New T S No.8025/1 Block No. 107 17-1-1994 Sale deed M/s. Anjaneya Printers P Ltd 3,19,230 Il 54 1/5th Share of 1 ground and 1086 Sq.ft. together with a super structure in S.No.301, 4725/16 in 21, Padmanaban Streetm T Nagar New T S No.8025/1 Block No. 107 17-1-1994 Sale deed M/s. Anjaneya Printers P Ltd 319,230 II 55 4293 sq.ft. together with a building (2000 sq.ft. Ground Floor 2600 sq.ft. first floor ) in S.No.6794 which is called No. 68, Habibullah Road, T.Nagar Ms. 17 30-12-1994 Sale deed M/s. Anjaneya Printers P Ltd 43,56,142 II 122 3472 sq.ft. together with building 3000 sq.ft. ground Floor 3700 sq.ft. first Floor in Survey No,6794 which is called 69, Habibullah Road T Nagar Ms. 17 30-12-1994 Sale deed M/s. Anjaneya Printers P Ltd 59,96,346 II 123 1/6th undivided ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Grand Total 37,55,10,354 97. He also drew our attention to a chart filed by him on disputed items in Annexure II relating to A2 to A4, firms & companies, its value as well as its ownership, which is given hereunder:- Part B- Disputed Items in Annexure II relating to its value as well as its ownership.. ANNEXURE -II Items shown in Annexur e - II Description of the item in Annexure II Value According to DVAC Evidence and Exhibits relied upon by DVAC Value as per defence Evidence and Exhibits relied upon by Accused No.2. Trial Court findings High court findings Exhibits PW's Exhibits DW's 6 Land and Building at Door No.19, Pattammal Street, Chennai Plot No.83, R.S.No.4087, extent 1897 Sq.Ft M/s. Jaya Publications Partners - Selvi.J.Jayaalithaa & N.Sasikala (Doc No. 1024/89, dt.18-6-89 of SRO, Mylapore 5,70,039 Shown in Annexure - I, Item -6 Acquired prior to check period. Hence, whole amount to be excluded 7. Land and Flat No.7 R.R.Flats, 3/4 Antu Street, Sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chy (in plot No.102, 3rd Cross Road, New Ward No.K, Block No.30, T.S.No. 107) to the extent of 3525 Sq.ft Tmt.N.Sasikala W/o. M.Natarajan (Doc No.2256/90, dt.3.5.90 of ORB, Thanjavur) 5,85,420 Shown in Annexure - 1, Item -15 Acquired prior to check period. Hence whole amount to be excluded 16 Dry land to the extent of 3.23 Acres in S.No.402/2 Sundarakottai Village, Tanjavur M/s. Sasi Enterprises (Doc No.563/90 dt.12-7-90) 75,210 Shown in Annexure - I, Item -16 Acquired prior to check period. Hence whole amount to be excluded 17 Land and building at Thiru Vi-Ka Industrial Estate, Guindy, in S.No.55, 56, Block No.6, extent 5658 Sq.ft, Shed No.C-8,Adyar Village - M/s. Jaya Publications (Doc No.4640/90 dt.8.12.1990 of SRO, Adyar 5,28,039 Shown in Annexure - I, Item -17 Acquired prior to check period. Hence whole amount to be excluded Items show n in Anne xure - II Description of the item in Annexure II Value According to DVAC Evidence and Exhibits relied upon by DVAC Value as per defence Evidence and Exhibits relied upon by Accused No.2. Trial Court findings High c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4, Pg. 1667- 1669 of Vol. VII. TC Accepts our case Items shown in Annexu re - II Description of the item in Annexure II Value According to DVAC Evidence and Exhibits relied upon by DVAC Value as per defence Evidence and Exhibits relied upon by Accused No.2. Trial Court findings High Court findings Exhibits PW's Exhibit s DW's 70 Actual consideration paid to Tr. Jagadesh A.Raja S/o. Alagu Raja, 22, Bazulah Road, Chennai-17 by DD Rs. 2,35,200/- and by cash Rs. 3,35,000/- on 8.3.1994 for purchase of 6.75 cents covered in Doc No.189/book4 of 1994 dated 9:3.1994 of SRO Adyar (owned by Green Farm House) 5,70,200 Ex.P-30, 31 and 32 - PoA Ex.P-43 - Sale agreement (Vol.No.14) Ex.CI, Pg.78 -79, Vol 81, Ex.C2, Pg. 80 -81, Vol. 81. PW- 16 (Vol No. 2,Pg. 84-92) at page 86 2,35,200 (Cash payment of Rs. 3,35,000/- denied) In the income tax returns of the vendors in Ex-C2 itself shows that the sale consideration was only Rs. 235200/-. His income tax returns belies his oral evidence of receipt of cash. Hence the value of Rs. 3,35,000/- is to be excluded. Though our case is acce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tatement under 313 Cr P C, A2 denied payment of any cash over and above the sale consideration. The relevant page of answer U/s 313 of Cr P C is enclosed. Page No.97 8 of Vol No.IV Items shown in Annex ure - II Description of the item in Annexure II Value According to DVAC Evidence and Exhibits relied upon by DVAC Value as per defence Evidence and Exhibits relied upon by Accused No.2. Trial Court findings High court findings Exhibits PW's Exhibits DW's 127 Cost of Transfer of 6,14,000 shares of M/s.Ramraj Agro at Vendampalai at the rate of Rs. 3/- per share from Gandhi and others (6,18,000 shares minus 4000 shares) (Mrs. N.Sasikala) 18,42,000 Vol No.61 page 290 Ex-P- 1529- DD payment of Rs. 3.60 Lacs dated 20.12.94 by Chq No.8213 PW 52 Ex-P-2244, Page No, 330 of Vol. No.75 Value of shares as per Defence is as below :- Total Value of Shares-Rs.I8,42,000 Less:- Value of 3,60,000 shares @ Rs. 3/- per share owned and relating to A-2 to A-4 - Rs. 10,80,000/- Balance = Rs. 7,62,000/- which needs to be excluded. Payments made through bank statement of A-2 to A-4 are Ex-P-1529 (Vol. No. 61 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure II. 173 Expenditure towards acquisition of Indo-Doha Chemicals and Pharmaceuticals Ltd at Cuddalore (I) Tr. Ayyadurai promotor of Indo Doha Pharmaceuticals Rs. 35,45,000/- (2) To interface capital Market shares 24,05,000/- (3) to Ind Bank - 27,41,000/- 86,91,000 PW-84 (Vol No. 4, pg. 3242, at page 38) Further cross will go to show no cash payment of Rs. 5,00,000/- Value as per defense is Rs. 81,91,000/- Hence the disputed value of Rs. 5,00,000/- which has been alleged to be paid in cash is to be excluded. Ref Re-exam Page 41, Vol. No.IV Para 94- 94.8, Pg. 1927- 1935 of Vol. VIII. No evaluation Pg 1930 of Vol. No. VIII Page No.979 of Vol. No.IV _ 174 New/additional construction in Building at 5- A, B, and C East Coast Neelankarai Chennai - 41 (Ref Doc. No. 4752/93 SRO Adayar) (Sasi Enterprises) 80,75,000 Ex.P-673 (Vol No. 35, page 70-171) PW-I17 (Vol. No 5, Pg.86 , cross 108- 109, recalled 116) See DW-75 (Vol. No. 91, Pgs. 181) Without prejudice : (Amount to be accepted is Rs. 40,39,019/-) and hence balance of Rs. 40,35,981/- is to be excluded. Ex.D-306 (Pg. 122-168 @ 163, Vol. 157) NOT CONSIDERED BY THE TRIAL ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... P&L acct for rent paid DW-89 (Vol. No. 92 , Pg. 203-211) Para 78.3, Pg.1696-1701 of Vol. VII. Trial Court agrees the contention of the accused that the prosecution has not proved the cost of construction yet granted 20% reduction in the overall cost. Hence the prosecution evidence towards cost of construction is liable to be rejected in its entirety. . Page No.866 to 889 of Vol. No.IV 178 New/additional construction in the Residential Building at D.No. 3/1/8c - Vettuvankeni Chennai (Green Farm House) 1,52,59,076 Ex.P-643 (Vol.No. 33, pg. 28-63) REFERRED BUT NOT CONSIDER ED Pg 1701 OF VOL NO.VII PW-98 (Vol. No. 4, Pg. 148-179) at page 151 Without prejudice : (Amount to be accepted is Rs. 1,02,47,286/-) and hence balance of Rs. 50,11,7901- to be excluded Ex.D-306 (Pg. 122-168, Vol. 157) DW-95 (Vol. No. 92, Pg.223 - 230) DW-76 (Vol No.91, Pg. 191-204) Para 78.4, Pg. 1701-1705 of Vol. VII. Trial Court agrees with the contention of the accused that the prosecution has not proved the cost of construction yet granted 20% reduction in the overall cost Hence the prosecution evidence towards cost of construction is liable to be rejected in its entirety. Page No.866 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Trial Court agrees with the contention of the accused that the prosecution has not proved the cost of' construction yet granted 20% reduction in the overall cost. Hence the prosecution evidence towards cost of construction is liable to be rejected in its entirety. Page No. 866 to 889 of Vol NO. IV Items shown in Annex ure - II Description of the item in Annexure II Value According to DVAC Evidence and Exhibits relied upon by DVAC Value as per defence Evidence and Exhibits relied upon by Accused No.2. Trial Court findings High court findings Exhibits PW's Exhibits DW's 185 New additional construction in residential building at door No. 21Padmanabha Street, T Nagar, Chennai - 17 (Anjaneya Printers) 20,43,000 Ex.P-666 (Vol. No. 34, pg 113-139) PW-116 (Vol. No. 5, Pg. 34- 85) at page 36 Without prejudice : (Amount spent for construction to be accepted is Rs. 19,05,868/-) and hence balance of Rs. 1,37,132/- to be excluded Ex.D-277 (Pg. 118-129 at page 128, Vol. 156) Value of property including land value is Rs. 3502018/- NOT CONSIDERED DW-79 (Pg. 222-237, Vol. No. 91, at page 224) DW-88 (Pg. 105176, Vol. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Nos) in the campus at No.1/240 Enjabakkam in New Mahabalipuram road (J. Farm House) 53,11,000 Ex-P-668 (Vol.No. 34, Pg. 151- 180) PW-116 (Vol. No. 5, pg. 34- 85 at page 37) Without prejudice : (Amount to be accepted is Rs. 29,82392/-) a nd h en c e b a la n c e o f Rs. 23,28,608/- to be excluded Ex.D-306 (Pg. 122-168, Vol.157) NOT CONSIDERED DW-95 (Vol. No.92, Pg.223-230) DW-92 (Vol. No 92, Pg.203-211, at page 203 & 204) DW-79 (Vol No. 91, Pg.222-237, at Page 228 & 229) Para 78.14, Pg. 1731 - 1732 of Vol. VII. Trial Court agrees with the contention of th e a ccus ed t ha t th e prosecution has not proved the cost of construction yet granted 20% reduction in the overall cost. Hence the prosecution evidence towards cost of construction is liable to be rejected in its entirety. Page No.866 to 889 of Vol. No.IV 189 New/ additional construction in residential Building at No. I Murphy Street, Akkarai Chennai (J.S. Housing Development) 20,38,959 Ex-P-644 (Vol No. 33, pg. 64-85) PW-98 (Vol. No. 4, Pg.148-179, at page 152- 153) - Without prejudice : (Amount to be accepted is Rs. 13,31,185/-) and hence balance of Rs. 7,07,774/- to be excluded Ex.D-306 (Pg. 122-168 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ranted 20% reduction in the overall cost. Hence the prosecution evidence towards cost of construction is liable to be rejected in its entirety. Page No.866 to 889 of Vol. No.IV 242 TSR 333 Swaraj Mazda Van 2,99,845 Shown in Annexure - I, Item 22 (Acquired prior to check period. Hence whole amount of Rs. 2,99,845/-is to be excluded) 249 (TN-01-09-F-3744) (Trax Jeep) 2,96,191 PW-59 (Vol. No. 3, pg. 5761, at page 58) (Does not admit payment) PW-69 (Vol. No. 3, pg. 100- 107, at page 102) Since no amount was paid towards purchase of vehicle the whole amount of Rs. 2,96,191/- is to be excluded. - Para 83-83.14, Pg. 1807- 1816 of Vol. VII. No application of mind Page No.979 of Vol. No.IV 254 TN 09 B 6966 (Metal King) 2,03,979 Ex.P-242 (Vol No. 25, pg. 40 - 42) Ex.P-288 (Vol No. 25, pg. 115) PW-59 (Vol No. 3, Pg.57) See PW-69 (Vol No. 3, Pg 100-107, at page 103) As per Ex.P-288 the vehicle was purchased by AIADMK on 19.4.1991 prior to check period. The said vehicle was purchased as second hand by Accused No. 1 on 12.5.1992 and from Accused No.1, the said vehicle was purchased by Metal King on 22.3.1995. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the name of Jaya publications - PW 201 71,218 Ex-P-1922 (Vol..No. 63, pg. 122-123) PW 201 Page 142, Vol No.9 As per the exhibit the amount is a renewal of the fixed deposit placed prior to the check period and hence full amount of Rs. 71,218/- is to be excluded Para 81, Pg. 17911795 of Vol. VII. Page No.979 of Vol. No.IV Items shown in Annexur e - II Description of the item in Annexure II Value According to DVAC Evidence and Exhibits relied upon by DVAC Value as per defence Evidence and Exhibits relied upon by Accused No-2. Trial Court findings High Court findin gs Exhibits PW's Exhibits DW's 285 62 items of Jewels claimed to be of Tmt. N. Sasikala as evaluated by M/s. VBC Trust on 31.3.1991 - 9,38,460 Ex-P-1014 (Vol. No. 57, pg. 181-183), Ex-P-1015 (Vol. No. 57, pg. 184-185), Ex-P-2208 (Vol. No. 69, pg. 164-187) Ex-P-2209 (Vol. No. 69, pg. 188-189) PW-179 (Vol. No. 7, pg.253-272) PW-227 (Vol. No. 11, pg.40- 56, at page 49 & 50) Acquired prior to check period, Hence the whole amount of Rs. 9,38,460/- is to be excluded. Para 79, Pg. 17561785 of Vol. VII. Page No.979 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pg. 66-67) P W-63 (Vol. No.3, pg. 74-78) (Amount to be accepted is Rs. 32,39,178/-) and hence balance of Rs. 1,100/- is to be excluded Ex.D-226 (Pg. 185- 186, Vol. No. 114, at page 186 - under fixed assets) DW-88 (Vol. No.92, page Nos. 105-176, at page 109) Para 83.6, Pg. 1811-1812 of Vol. VII. Page No.979 of Vol. No.IV 301 Cost of renovation and additional construction between June 1992 and 1993 of the building at Plot No. 102 III Cross Road, Pon Nagar, Trichy owned by Tmt. N. Sasikala (Covered by document No. 2256/90 dt. 3/5/90 S R 0 I 0 R B TRICHY) 6,83,325 Ex.P-781 (Vol. No.39, pg. 126-127) and Ex-P-782 (Vol. No. 39, pg. 128-129) PW-144 (Vol. No.6, pg. 147-152) recalled see Pg. 152 of Vol. 6. Purchased with building prior to the check period. No new construction Purchased prior to check period Annexure I, Item No.15, Vol. No. I (page 42). Hence building value of Rs. 6,83,325/- is to be excluded. Para 78.18, Pg. 1736-1738 of Vol. VII. Trial Court agrees with the contention of t h e ac c us e d th at the prosecution has not proved the cost of construction yet granted 20% reduction in the overall cost. Hence the prosecution evidence towards cost of co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emand Drafts. He relied upon a letter of the bank dated 12.11.1996, which was marked as Exh. P-40 before the Court. 100. It is further submitted that the letter does not indicate that any amount is paid by A3, A4 or the said Sreethaladevi. The prosecution has clearly attempted to manipulate the evidence to show that A3, A4 and Sreethaladevi paid a sum of Rs. 38,51,000/-. In the absence of any evidence of any payment of Rs. 38,51,000/- the case of the prosecution must be discarded. However, defence led evidence through DW88 and has proved the partnership deed (Exh.D-379) showing the original partners retiring and A3, A4 and Sreethaladevi being inducted as partners. It would be evident from the said deed that an amount of Rs. 10 Lakhs only has been paid to the outgoing partners. It is submitted that the Trial Court added the whole amount of Rs. 38,51,000/- as assets of the accused. Although A3 admits only a sum of Rs. 10 Lakhs under this item, the balance of Rs. 28,51,000/- is liable to be excluded. 101. He further pointed out that the shares by M/s. Anjaneya Printers (P) Limited at No. 48 Inner Ring Road, Ekkattuthangal, on 01.09.1993 were acquired after making payment of Rs. 64,0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A3 and A4, it is submitted that A2, A3 and A4 did not have shares valued at Rs. 18,42,000/- as alleged by DVAC. The Trial Court mechanically accepted the case of the prosecution without considering the case of the defence. Hence, he submitted that an amount of Rs. 7,62,000/- is to be reduced from the alleged assets of A2 to A4. 104. As regards the disputed item at Srl. No.159 of Annexure- II, relating to cost of acquisition of Luz Avenue property, it is submitted by Mr. Naphade that as alleged by the prosecution, payment of Rs. 76,00,000/- had been made by way of cash over and above the sale consideration recited in the document. According to the defence, no amount was paid except the consideration amount recited in the sale deed. He further pointed out that the Trial Court disbelieved the case of the prosecution in respect of the disputed items at Srl. Nos. 168 & 169 to Annexure-II. It is submitted that A2 had purchased items at Srl. Nos.34 to 48 of Annexure-II during the check period for Rs. 3,49,683/- as per DVAC and the very same items were sold by A2 to Meadow Agro Pvt. Ltd. for Rs. 2,90,000/- and the same are shown again as Items Nos.168 & 169 of Annexure-II. Therefore, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... osecution relied upon the oral evidence of PW-40, PW-107 and PW-220 and Exh.P-96 to Exh.P-103 which are sale deeds and Exh.P-662 is a valuation report of PW-107. He further submitted that in support of the above contention, the defence relied on Exh.D-251 to Exh.D-257 and according to them, the said building was existing even prior to the sale. According to him, no positive evidence has been adduced by the prosecution to prove the additional construction during the check period or its value. The Trial Court still accepted 80% of the alleged value of the said construction which should have been omitted. 107. Similarly, with respect of the New/Additional construction of Building at Door No.48, Jawaharlal Nehru Road, Industrial Estate, Guindy Ekkatuthangal, Chennai, (Shastry Nuts Plates) being item at Srl. No.177 of Annexure-II, at Rs. 2,13,63,457/-, Mr. Naphade submitted that the DVAC and the Trial Court have assumed that the said additional construction was undertaken by Anjaneya Printers Pvt. Ltd. where A2 and A3 are directors. According to the defence, this construction is not undertaken by Anjaneya Printers Pvt. Ltd. and it belongs to Sastri Nuts Plates Manufacturers Pvt. Ltd. a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction in Building at Door No.19, Pattammal St. Mylapore, Chennai - Jaya Publication, it is submitted that the prosecution witness PW-116 stated that the value for this construction was estimated at Rs. 8,00,000/-. However, the same was not accepted as its value as per the balance sheet of Jaya Publications for the year ended 31.03.1996 is shown as Rs. 6,42,290/-. Hence, the balance amount is liable to be excluded. 112. With regard to the disputed item being Srl. No.185 of Annexure-II, relating to New Additional Construction in the residential building at Door No.21, Padmanabha Street, T. Nagar, Chennai, it is submitted that the said construction was undertaken by M/s. Anjaneya Printers Pvt. Ltd., according to the prosecution, to the tune of Rs. 20,43,000/- and the prosecution relied upon the evidence of PW-116 and the report prepared being Exh.P-666 and according to Mr. Naphade, there is no positive evidence to prove that the construction was undertaken during the check period. According to Mr. Naphade, only an amount of Rs. 19,05,568/- was proved by DW-88 in respect of such cost and therefore, the balance amount is liable to be excluded. 113. With regard to the disputed item bei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould have been discarded. 117. Mr. Naphade further contended that the income shown in assessment year 1992-1993 by A2 during the check period, including the foreign remittance, has not been taken into account by the prosecution and the Trial Court ought to have included this in the income of A2. He further contended that the income from agricultural operation and by way of gift for A2 for the assessment year 1992-1993 has not been included in the income of A2 and the Income Tax authorities having accepted the same, the DVAC and the Trial Court have erroneously omitted to include such income in the income of A2. The income of A2 shown in the assessment year 1993- 1994 to the tune of Rs. 10,00,000/- has not been accepted by the DVAC and the Trial Court. Similarly, DVAC and the Trial Court did not give due credit for the income shown in the assessment year 1994-1995 of A2 which was to the tune of Rs. 24,99,005/-. It is further contended that the two loans of Rs. 15,00,000/- and Rs. 45,00,000/- availed by A2 for herself and for her proprietary concern Metal King, on 10.1.1996 from Housing and Real Estate Development Pvt. Ltd., Chennai and on 6.1.1996 & 5.3.1996, from Housing, Real Est ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... further submitted that the cash in hand with A2 being Rs. 4,35,622/- was also not taken into account by the Trial Court. It is further submitted by the learned counsel that Sasi Enterprises availed a loan from Housing Real Estate and Development (P) Ltd. to the tune of Rs. 10 lakhs on 20.2.1996. The Trial Court without considering the bank statement and the payments made by cheque, failed to accept the said loan transaction on the ground that the accused have not produced any acceptable evidence in proof of availing the loan from the said Housing Real Estate and Development (P) Ltd. company. Sasi Enterprises further availed a loan on 18.10.1995 to the tune of Rs. 2 lakhs from M/s. Lex Properties Pvt. Ltd. which was borne out by the Exh.P-1255, Bank Statement of Sasi Enterprises. This amount has not been taken into account by the DVAC and the Trial Court. 122. Sasi Enterprises had received a contribution of Rs. 75 lakhs on 29.9.1992 from A1 which she had availed from CANFIN Homes Ltd. as loan against FD of Rs. 1 crore. Therefore, Sasi Enterprises had an income of Rs. 75 lakhs as capital contribution by A1 during the check period which has been ignored and overlooked by DVAC and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 125. He underlined that Jaya Publications used to publish a newspaper by name 'Namadhu MGR' and a separate account was maintained for running of the said newspaper. To boost the subscription of 'Namadhu MGR', deposits were received from the subscribers. In this scheme, a total amount of Rs. 14,10,35,000/- was received by Jaya Publications from 1.7.1991 to 30.4.1996 during the check period. According to Mr. Naphade, the said amount should have been added to the income of Jaya Publications as the same was accepted by the Income Tax authorities after detailed scrutiny. But DVAC and the Trial Court did not give any credit to the said income. 126. Qua M/s. J. Farm House, in which A2, A3 and A4 were partners, it is submitted that it had availed a loan of Rs. 25 lakhs from M/s. Housing Real Estate and Development (P) Ltd. during the financial year 1995-1996 which was acknowledged by the said company. This amount was available as income of the said company during the check period. No credit thereto has been given by the Trial Court. Mr. Naphade submitted that this amount should have been included as income of the company. Similarly, M/s. Green Farm House in which A2, A3 and A4 were partn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terest as an item of expenditure, thereby subjecting the accused to double jeopardy. 129. Similarly, he tried to explain the expenditure of Rs. 11,81,425.16 which was incurred by Anjaneya Printers towards the interest payable to Indian Bank in respect of loan obtained from the said bank. The defence case is that the said amount of Rs. 11,81,425.16 cannot be taken as additional item in the Expenditure Column. According to him, the prosecution has failed to establish the payment of interest. The documentary evidence produced by the prosecution does not indicate that the said amount was paid to the bank during the check period. The defence submitted that during 1993-1994 to 1995-1996, the total interest paid in the aforesaid three years, aggregated to Rs. 24,25,685/- and the net profit for the said period came to Rs. 53,50,215/-. According to him, the Trial Court has totally ignored the defence evidence and came to its conclusions. He has urged that the Trial Court wrongly did not give any weight to the evidence produced by the defence and has failed to give credit in favour of the accused. He further contended that the Trial Court is totally wrong and has come to conclusion disregar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the value of the assets as cited by the prosecution, it could not have deducted the marriage expenses therefrom, as is conceptually impermissible, he contended that had the uncalled for reduction in the value of assets and the marriage expenses not been effected, the percentage of disproportionate assets would have been in the vicinity of approximately 76.75%. Mr. Dave was particularly scathing about the purported analysis of the evidence pertaining to the valuation of the income, assets and expenditure and contended that the findings arrived at on the basis thereof being patently perverse are liable to be set aside. As the materials on record did conspicuously demonstrate that the assets acquired by the respondents during the check period were grossly disproportionate to their known source of income, it was their burden, primarily though of A1, being a public servant at the relevant point of time, to satisfactorily account therefor, more particularly in the face of the charge under Section 13(1)(e) of the 1988 Act read with Section 109 and 120B IPC. Mr. Dave argued that having regard to the evidence available on records, it is hyaline clear that A1 being a public servant at the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted on the various factual aspects bearing on the charge and the evidence adduced in respect thereof. He reiterated that the High Court in quantifying the income had wrongly included Rs. 13.5 crores and reduced as well the value of the assets and the marriage expenses and on the basis of such wrong figures held against the charge of disproportionate assets of the respondents by relying on the decision in Krishnanand Agnihotri (supra). While strongly refuting the imputation made in course of the arguments on behalf of the respondents that the prosecution against them has been unfair, the learned senior counsel inter alia referred to a show cause notice that was issued to A1 to explain the disproportionate assets before launching the prosecution. In discarding the income tax returns and the orders passed thereon for the various assessment years during the check period to be unworthy of any credence, the same having been belatedly filed much after the charge-sheet with an obvious purpose, Mr. Acharya emphasized that evidence adduced authenticated unabated cash flow from 36, Poes Garden, i.e. the residential Secretariat of A1 to various accounts of the other respondents as well as the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respondents by applying the decision in Krishnanand Agnihotri (supra). According to Dr. Swami not only this decision does not lay down an uniform proposition of law regardless of the textual facts, even assuming without admitting that the computation undertaken by the High Court in evaluating the income, the assets and the expenditure to be correct, the respondents could not have been exonerated of the serious charges levelled against them in the overwhelming perspective of the statutory intolerance against pervasive and pernicious escalation of corruption in public life destroying the vitals of the systemic soul of our democratic polity. 134. Mr. Anbazaghan, the petitioner in SLP (Crl.) Nos.6294- 6295 of 2015 impeaching as well the acquittal of the respondents has in his written submissions insistently asserted in favour of his locus to maintain the challenge by profusely referring to the pronouncements of this Court in K. Anbazhagan Vs. Superintendent of Police and others - (2004) 3 SCC 767 and K. Anbazhagan (supra). Apart from contending that his standing having been unreservedly recognized by this Court and his intervention inter alia in occasioning the transfer of the prosec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A3, A4 and the firms/companies involved, as no charge with regard thereto had been framed. According to the learned senior counsel not only the relevant income tax returns of his client had been filed before the raid was conducted in her house on 07.12.1996, the orders passed by the Income Tax Authorities thereon after a full-fledged scrutiny of all relevant aspects proffer a complete answer to the accusations made against her. The learned senior counsel asserted that the income tax records were relevant and admissible as public documents even without reference to Section 43 of the Indian Evidence Act, 1892 (for short hereinafter referred to as the "Evidence Act"). He urged that the income tax proceedings/orders passed, following detailed enquiries into the inputs provided and successively tested in appeals before several tiers, thus cannot be wished away as of no evidentiary value as commented by the Trial Court. Additionally, the defence not only did refer to the income tax records but also had produced the same at the trial by way of primary evidence which by no means could have been overlooked by the Trial Court. The learned senior counsel elaborated on various aspects of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... companies were in existence before the check period and had been in business, have been overlooked as well by the Trial Court in assuming the culpability of the respondents de hors supporting materials, has been emphasized. In any view of the matter, Mr. Naphade submitted that the prosecution has failed to discharge its burden that A1 by herself and/or with the co-accused on her behalf had committed any corrupt practice, and thus the High Court was perfectly justified in recording their acquittal in absence of any tangible proof of abetment and conspiracy. The learned senior counsel asserted that in any case A2, A3 and A4 not being public servants at the relevant point of time, they cannot be called upon to explain the charge under Section 13(1)(e) of 1988 Act. He dismissed as well the evidence of the prosecution with regard to the income, assets and expenditure, with particular reference to the reports of the experts in connection therewith, branding the same to be lacking in inherent worth and credibility. That the Trial Court had grossly erred in analyzing the evidence of the prosecution and leaving out of consideration most of the materials adduced by the defence, in inferring ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n any gratification other than legal remuneration. In the eventualities, as mentioned therein, Section 5 defined criminal misconduct by a public servant. Noticeably, by Section 6 of Act 40 of 1964 i.e. the Anti Corruption Law (Amendment) Act, 1964, amongst others, the following insertion by way of clause (e) was incorporated in Section 5: "if he or any person on his behalf is in possession or has, at any time during the period of his office, been in possession, for which the public servant cannot satisfactorily account, of pecuniary resources or property disproportionate to his known sources of income.". 140. A bare perusal of this extract would reveal that the criminal misconduct of the public servant, as envisaged therein, would ensue if he/she or any person on his/her behalf was in possession or had, at any point of time during the period of his/her office, been in possession of pecuniary resources or property, disproportionate to his/her known sources of income, which the public servant cannot satisfactorily account. Significantly, for such misconduct, the possession of the disproportionate pecuniary resources or property, which the public servant is unable to satisfactorily ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat end in view, the ambit of "public servant" was sought to be expanded. Additionally, the offences hitherto enumerated in Sections 161 to 165A IPC were recommended to be incorporated in the legislation with enhanced penalties. Finality of the order of the Trial Court upholding the grant of sanction for prosecution and provision for day to day trial of cases were also integrated as few other unique features of the initiative. 144. In order to obviate avoidable references, certain provisions of decisive relevance would only be dilated upon. Section 3 empowers the Central or the State Government to appoint Special Judges, by notification in the official gazette, to try cases, as may be specified therein, namely; (a) any offence punishable under the Act; and (b) any conspiracy to commit or any attempt to commit or any abetment of the offences specified in clause (a). 145. Section 4 clarifies that the special Judge, so appointed, shall try the offences specified in Section 3 of the Act and may also try any offence other than those with which an accused may be charged at the same trial under the Code of Criminal Procedure, 1973 (hereinafter referred to as the 'Code' as well). Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... luded. While Section 27 recognises a special Judge under the Act to be a Court of Session qua the powers of appeal and revision, conferred by the Code of Criminal Procedure, 1973 available to the jurisdictional High Court, Section 28 ordains that the provisions of the Act would be in addition to and not in derogation of any other law for the time being in force and that nothing contained therein would exempt any public servant from any proceeding which might be instituted against him/her. By Section 29, amongst others, paragraph 4A of the Criminal Law Amendment Ordinance Act, 1944 has been substituted as hereunder: "4A - An offence punishable under the Prevention of Corruption Act, 1988". Significantly, prior to the substitution, paragraph 4A of the afore-mentioned ordinance read as follows: "4A: An offence punishable under Section 5 of Prevention of Corruption Act, 1947" 150. Assuredly thus, the offence under Section 5 of the Prevention of Corruption Act, 1947 (for short "1947 Act"), was included in the schedule of offences, appended to the Criminal Amendment Ordinance, 1944 since 18.12.1964 w.e.f. which Anti Corruption Laws (Amendment) Act, 1964 was enforced. 151. As a conseq ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... portionate thereto, has to be from a lawful source and further that the receipt thereof had been intimated in accordance with the provisions of any law, rule or orders for the time being applicable to him/her, as the case may be. This prescription indubitably emphasizes the lawfulness or legitimacy of the income to enable the public servant to satisfactorily account for the pecuniary resources or property otherwise imputed to be disproportionate thereto. Not only the Act entertains presumption against the public servant, in the eventualities as comprehended in Section 20 of the Act, it is clarified in Section 28 that nothing in the statute would exempt any public servant from any proceeding which might apart from the Act, be instituted against him or her. Section 29, amongst others to reiterate, has substituted in paragraph 4A of the Ordinance, an offence punishable under the 1988 Act, in lieu of the offence under Section 5 of the 1947 Act. The legislation thus is a complete code by itself, vibrant with the purpose therefor and animated with the spirit to effectuate the statutory goal. All these predicate a purposive explication of the provisions thereof to further the salutary leg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... adily available. It was ruled that it is not necessary that each member to a conspiracy must know all the details of all the conspiracy. (Emphasis supplied) 157. This Court recalled its observations in Yash Pal Mittal Vs. State of Punjab, (1977) 4 SCC 540 that there may be so many devices and techniques adopted to achieve the common goal of the conspiracy, and there may be division of performances in the chain of actions with one object to achieve the real end, of which every collaborator need not be aware but in which each one of them would be interested. There must be a unity of object or purpose but there may be plurality of means, sometimes even unknown to one another, amongst the conspirators. The only relevant factor is that all means adopted and illegal acts done must be to fulfill the object of the conspiracy. Even if some steps are resorted to by one or two of the conspirators without the knowledge of the others, it will not affect the culpability of those others when they are associated with the object of the conspiracy. It was noted that as an exception to the settled position of law, an act or action of one of the accused cannot be used as evidence against another, Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as of the view that although common design is the root of the charge, it is not necessary to prove that these two parties had come together and actually agreed in terms to have the common design and to pursue it by common means and so to carry it into execution, as in many cases of established conspiracy, there are no ways of proving any such thing. If it is found that these two persons pursued by their acts, the same object, often by the same means, one performing one part of an act and the other another part of the same act so as to complete it, with a view to attain the object which they are pursuing, you will be at liberty to draw the conclusion that they have been engaged in a conspiracy to effect that object. (Emphasis supplied) 161. The overwhelming judicial opinion thus is that a conspiracy can be proved by circumstantial evidence as mostly having regard to the nature of the offending act, no direct evidence can be expected. 162. In Firozuddin Basheeruddin & Ors. Vs. State of Kerala, (supra), it was ruled that loosened standards prevail in a conspiracy trial regarding admissibility of evidence. Contrary to the usual rule, in conspiracy prosecution, any declaration by one ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... served in State of M.P. & Ors. Vs. Ram Singh, (2000) 5 SCC 88, that corruption in a civilized society is a disease like cancer, which if not detected in time is sure to afflict the polity of the country leading to disastrous consequences. It was ruled that corruption is like a plague which is not only contagious but if not controlled spreads like fire in a jungle. It was proclaimed that corruption is opposed to democracy and social order, being not only anti people but aimed and targeted against them. It affects the economy and destroys the cultural heritage and therefore, unless it is nipped in the bud at the earliest, it is likely to cause turbulence, shaking the socioeconomic- political system in an otherwise healthy, wealthy, effective and vibrating society. 167. The history of the enactment of the 1947 Act was traced in R.S. Nayak Vs. A.R. Antulay, (1984) 2 SCC 183 and a caveat was sounded to the effect that whenever a question of construction arises upon ambiguity or if two views are possible of a provision of an anti corruption law (then Act 1947), it would be the duty of the Court to adopt that construction which would advance the object underlying the statute, namely to m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e from undisclosed source. Eventually, the statement of case was referred to the High Court with the following question: "Whether, on the facts and in the circumstances of the case, there was any material to hold that the sum of Rs. 20,000/- was income of the assessee from some other source and was not income included in the assessed income on the rejection of the books of account?" The High Court, having answered in the affirmative in favour of the assessee, the issue reached this Court. 172. It was exposited that there was nothing in law which prevented the Income Tax Officer in an appropriate case from taxing both the cash credit, the source and nature of which was not satisfactorily explained, and the business income estimated by him under Section 13 of the Income Tax Act, 1922, after rejecting the books of accounts of the assessee as unreliable. It was propounded as well that where there was unexplained cash credit, it was open to the Income Tax Officer to hold that it is the income of the assessee and no further burden lies on the Income Tax Officer to show that that income is from any particular source and that it was for the assessee to prove that even if the cash credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clusion that the disputed amount represented income and that the assessee had consciously concealed the particulars of his income or had deliberately furnished inaccurate particulars. 175. The decision is to convey that though the I.T. returns and the orders passed in the I.T. Proceedings in the instant case recorded the income of the accused concerned as disclosed in their returns, in view of the charge levelled against them, such returns and the orders in the I.T. Proceedings would not by themselves establish that such income had been from lawful source as contemplated in the explanation to Section 13(1(e) and that independent evidence would be required to account for the same. 176. Though considerable exchanges had been made in course of the arguments, centring around Section 43 of the Indian Evidence Act, 1872, we are of the comprehension that those need not be expatiated in details. Suffice it to state that even assuming that the income tax returns, the proceedings in connection therewith and the decisions rendered therein are relevant and admissible in evidence as well, nothing as such, turns thereon definitively as those do not furnish any guarantee or authentication of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the respondent, the I.T.O., held that out of Rs. 65,500/- an amount of Rs. 60,500/- constituted income of the assessee from undisclosed sources. The plea of the respondent was that if he was regarded as engaged in the business of smuggling gold, he was entitled to deduction under Section 10(1) of the Income Tax Act of the entire amount at Rs. 65,500/- as loss incurred in the business due to the confiscation thereof. His claim was upheld. It was ruled that if the activities of smuggling can be regarded as business, the currency notes carried by the assessee was meant for acquiring gold in Pakistan to be sold in India at a profit. The carrying of currency note was thus an essential part of the business and the confiscation of currency notes was a loss occasioned in pursuing the business and would be akin to an eventuality, as if the currency notes had been stolen or dropped on the way, while carrying on business. (emphasis supplied) This rendition too proclaims against probative efficacy of an income tax proceeding or order passed therein as a conclusive determinant of lawfulness of the source of any income involved therein. 179. In State of Tamil Nadu by Inspector of Police Vi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tax Officer but the Tribunal held, in further appeal, that the transactions in question were not illegal contracts but were contracts which had been validly entered into under the Act and the bye-laws etc. The Tribunal remanded the matter to the Appellate Assistant Commissioner for a report and on the receipt thereof, it eventually held that such loss could not be set off against the other income but was of the view that the assessee was entitled to a set off of the loss against the profits in speculative transactions. 182. The High Court in the reference made, inter alia, held that even though the disputed contracts were not validly entered into in accordance with the above mentioned Act, the loss of Rs. 3,40,443 was liable to be taken into account in computing the business income of the assessee under Section 10 of the Act of 1922 and the assessee was entitled to set off against the profits from other speculative transactions. This Court in the above factual backdrop held that it is well settled that contracts which are prohibited by statute, the prohibition being either express or implied, would be illegal and unenforceable if they are entered into in contravention of the sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f of the respondents that income tax returns had already been filed and the matters were pending before the authorities concerned and all the payments were made by cheques, and thus the allegation levelled against them were baseless. It was observed that the minuteness of the details furnished by the parties and the income tax returns and assessment orders, sale deeds etc. were necessary to be carefully looked into and analysed only by an independent agency with the assistance of chartered accountants and other accredited engineers and valuers of the property. It was observed that the Income Tax Department was concerned only with the source of income and whether the tax was paid or not and, therefore, only an independent agency or CBI could, on court direction, determine the question of disproportionate assets. The CBI was thus directed to conduct a preliminary enquiry into the assets of all the respondents and to take further action in the matter after scrutinizing as to whether a case was made out or not. This decision is to emphasize that submission of income tax returns and the assessments orders passed thereon, would not constitute a full proof defence against a charge of acqu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mon (Pauper) Vs. A. Salomon and Company Limited, 1897 AC 22, the House of Lords accentuated the distinctive entity of a company qua its subscribers as elucidated hereunder: "The company is at law a different person altogether from the subscribers to the memorandum; and, though it may be that after incorporation, the business is precisely the same as it was before, and the same persons are managers, and the same hands receive the profits, the company is not in law the agent of the subscribers or trustee for them." The caveat of Lord Halsbury L.C. in this context, as extracted hereinbelow, however is revealing: "I am simply here dealing with the provisions of the statute, and it seems to me to be essential to the artificial creation that the law should recognise only that artificial existence - quite apart from the motives or conduct of individual corporation. In saying this, I do not at all mean to suggest that if it could be established that this provision of the statute to which I am adverting had not been complied with, you could not go behind the certificate of incorporation to show that a fraud had been committed upon the officer entrusted with the duty of giving the certifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... but also where protection of public interest was of paramount importance and the corporate entity was only an attempt to evade legal obligations and lifting of veil is necessary to prevent a device to avoid any welfare legislation. It was acknowledged that it was difficult to enumerate the classes of cases where lifting the veil is permissible but it was stressed upon that the same must necessarily depend on the relevant statutory or other provisions, the object sought to be achieved, the impugned conduct, the involvement of the element of the public interest, the effect on parties who may be affected etc. It was recorded that the doctrine of lifting the veil could be invoked, if the public interest so required or if there was violation of law by using the device of a corporate entity. In the reported case, the corporate entity had been used to conceal the real transaction of transfer of mining lease to a third party for consideration without the statutory consent by terming it as two separate transactions. The real transaction was the sale of mining lease which was legally impermissible. That the doctrine of lifting the veil has to be applied to give effect to law which is sought ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... qua an income determined by undisclosed sources, in terms of Section 68, such income can be made subject to income tax and secondly even if such transaction is evidenced by banking operations as well as contemporaneous records pertaining thereto, the same ipso facto would not be determinative to hold that the transaction was that of a genuine acceptable gift. It was in this context that the distinction between a transaction that is apparent from one i.e. real has been highlighted in emphatic terms. 196. In Yash Pal Goel Vs. Commissioner of Income Tax (Appeals), (2009) 310 ITR 75 (P&H) Smt. Kusumlata Thakral Vs. Commissioner of Income Tax (Appeals), (2010) 327 ITR 424 (P&H), Commissioner of Income Tax Vs. Sandeep Goyal, (2014) 369 ITR 471 (P&H) and Income Tax Officer Vs. Mukesh Bhanubhai Shah, (2009) 318 (AT) 394 (ITAT [Mum]), the common issue was with regard to applicability of Section 68 of the Income Tax Act, 1961 vis-avis receipts which were claimed by the assessees to be by way of gifts and thus exempted from income tax. In all these cases the assessees were asked to provide explanation to bring the receipts within the purview of gifts exempted from income tax and the AO on an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny previous year, the same may be charged as income tax as the income of the assessee of the previous year, if the explanation offered by the assessee about the nature and source thereof is in the opinion of the Assessing Officer, not satisfactory. It was expounded that in such a case there is, prima facie, evidence against the assessee viz., the receipt of money, and if he fails to rebut the said evidence, it can be used against him by holding that it was a receipt of an income nature. 200. In the contextual facts it was observed that though there was no dispute that the amounts were received by the appellant from various race clubs on the basis of winning tickets presented by her, the question was whether the transaction could be accepted as real. The Court recalled, the laid down proposition that apparent must be considered as real until it is shown that there are reasons to believe that the apparent is not the real and the Taxing Authorities are entitled to look in the attendant circumstances to find out the reality and that the matter has to be considered by applying the test of human probabilities. On an analysis of the various attendant factors i.e. knowledge of the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... comprehension, would comport to the Statement of Objects & Reasons of the legislation, which envisaged widening of the scope of the definition of the expression "public servant" and incorporation of the offences under Sections 161 to 165A in the Act. As a corollary, while applying Section 13 thereof in the facts of the given case, the attributes of the offences contained in erstwhile Sections 161 to 165A of the IPC cannot be totally disregarded. Burden of proof and benefits of doubt 203. That the burden of proof a charge is on the prosecution subject to the defence of insanity and any other statutory exception has been authoritatively proclaimed in Woolmington Vs. The Director of Public Prosecutions, (1935) AC 462, and testified by the following extract: Throughout the web of the English Criminal Law one golden thread is always to be seen, that it is the duty of the prosecution to prove the prisoner's guilt subject to what I have already said as to the defence of insanity and subject also to any statutory exception. If, at the end of and on the whole of the case, there is a reasonable doubt, created by the evidence given by either the prosecution or the prisoner, as to whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue. It was exposited that legal proof is thus not necessarily perfect proof and is nothing more than a prudent man's estimate as to the probability of the case. 206. That proof beyond reasonable doubt is only a guideline and not a fetish and that a guilty man cannot get away with it because truth suffers from infirmity, when projected through human processes, was underscored by this Court in Inder Singh & Anr. Vs. State (Delhi Administration), (1978) 4 SCC 161. It was remarked that if a case is proved too perfectly, it is argued that it is artificial; if a case has some flaws, inevitable because human beings are prone to err, it is argued that it is, too imperfect and thus whether in the meticulous hypersensitivity to eliminate a rare innocent from being punished, many, guilty men must be callously allowed to escape. 207. In the same vein, this Court in Ashok Debbarma alias Achak Debbarma Vs. State of Tripura, (2014) 4 SCC 747, expounded that in our criminal justice system, for recording guilt of the accused, it is not necessary that the prosecution should prove the case with absolute or mathematical certainty but only beyond reasonable doubt and the criminal courts, while ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sible explanation was inapplicable, as under this statute, the accused person was required to satisfactorily account for the possession of the pecuniary resources or property disproportionate to its own sources of income and that the word "satisfactorily" used by the legislature deliberately did cast a burden on the accused not only to offer a plausible explanation as to how he came to acquire his large wealth but also to satisfy the Court that his explanation was worthy of acceptance. This Court enunciated that "known sources of income" must have reference to sources known to the prosecution on a thorough investigation of the case and it cannot be the resources known to the accused. In further elaboration, it was elucidated that the affairs of an accused person would be a matter within his special knowledge in terms of the Section 106 of the Evidence Act and that the source of income of a particular individual would depend upon his position in life, with particular reference to its occupation or avocation in life and in case of government servant, the prosecution would naturally infer that his known source of income would be the salary earned by him during his active service. That ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ver, recognized that the burden of the accused was not so onerous as that of the prosecution and could be discharged by proof of balance of probabilities. (emphasis supplied) 214. In K. Ponnuswamy Vs. State of T.N., (2001) 6 SCC 674, this Court referred to the definition of the word "proved" in Section 3 of the Indian Evidence Act 1872 and also Section 114 thereof. While noting that in terms thereof, a fact is said to be proved when after considering the matters before it, the Court either believes it to exist or considers its existence so probable that a prudent man, under the circumstances of the particular case, ought to act upon this supposition that it exists. It reflected also on the permissible presumption envisaged under the statute, with regard to the existence of any fact which a Court is likely to think to have happened, regard being had to the common course of natural events, human conduct and public and private business in relation to the facts of a particular case. 215. The significance of this decision is that while evaluating the evidence on record, the attendant facts and circumstances need be taken note of as well, to determine as to whether the materials availa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xplanation to Section 13(1)(e) of 1988 Act, the known sources of income of a public servant for the purpose of satisfying the Court should be "lawful source" and further the receipt thereof should have been intimated by him or her in accordance with the provisions of any law applicable to such public servant at the relevant time. It was underscored that a public servant cannot escape from the tentacles of Section 13(1)(e) of the 1988 Act, by showing other legally forbidden sources. 219. A Constitution Bench of this Court in K. Veeraswami Vs. Union of India & Ors., (1991) 3 SCC 655, again elaborating on an offence under Section 5(1)(e) read with Section 5(2) of the Act 1947 reaffirmed the view that clause (e) of Section 5(1) created a statutory offence which must be proved by the prosecution and when the onus is discharged by it, the accused has to account satisfactorily for the disproportionality of the properties possessed by him. It was noted that the Section did make available a statutory defence to the accused which he/she was to prove and that the public servant was required to account for the disparity of the assets qua the income. Though it was observed that the legal burde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dispute was restricted only to Item 26 of the assets (moveables) and agricultural income. It was pleaded that the former was over estimated and deserved to be reduced and the latter was under estimated and was to be enhanced. The High Court rejected the plea. This Court noted that whereas the prosecution in support of the agricultural income amongst others relied on the evidence of the Mandal Revenue Officer and the details furnished by the witness in the documents proved by him, the accused placed reliance on a document without disclosing as to who was the author thereof and on what basis the entries mentioned therein had been made. Placing reliance on the decision in State of M.P. Vs. Awadh Kishore Gupta and others (supra), dealing with "income" of a public servant " known sources" of income" and "satisfactorily account", this Court affirmed the conviction. It reiterated that by using the word "satisfactorily", the legislature had deliberately cast a burden on the accused not only to offer a plausible explanation as to how he came by his large wealth, but also to satisfy the Court that his explanation was worthy of acceptance. Scope of interference with an order of acquittal/con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e High Court appealed against is fraught with serious and substantial error of law and legal infirmities was highlighted in State of Maharashtra Vs. Narsinghrao Gangaram Pimple, (1984) 1 SCC 446. In the factual scenario involved therein, this Court was of the view that abstinence from interference with the order of acquittal would amount to failure in duty. 224. In State of Punjab Vs. Karnail Singh, (2003) 11 SCC 271, where apart from underlining that there was no embargo on the Appellate Court to review the evidence upon which an order of acquittal is based, it was elaborated that if two views are possible on the same set of evidence, interference with an acquittal would be justified when there are compelling and substantial reasons for doing so. It was stated as well that if the impugned judgement of acquittal is unreasonable, it would as well be a compelling reason to overturn the same. (emphasis supplied) 225. It was propounded in Mritunjoy Biswas Vs. Pranab alias Kuti Biswas & Anr., (2013) 12 SCC 796, that minor discrepancies are not to be given undue emphasis and evidence is to be considered from the point of view of trustworthiness. The test is whether the same inspires c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cial discretionary power to interfere in suitable cases when for special reasons, it considers that interference is called for in the larger interest of justice. 228. In Chandrappa & Ors. Vs. State of Karnataka, (2007) 4 SCC 415, the High Court had reversed the order of acquittal made by the Trial Court and had convicted the appellants. The scope of interference with an order of acquittal under Section 378 Cr.P.C. thus fell for scrutiny of this Court. It was ruled that in an appeal against acquittal, the High Court has full power to re appreciate, review and reconsider the evidence at large, the material on which the order of acquittal is founded and to arrive at its own conclusions on such evidence. Both questions of fact and of law are open to determination by the High Court in an appeal against an order of acquittal. It, however, has to bear in mind that there is a double presumption in favour of the accused once there is an order of acquittal. Firstly, the presumption of innocence is available to him under the fundamental principle of criminal jurisprudence that every person should be presumed to be innocent unless he is proved to be guilty by a competent court of law and seco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed upon. While reiterating the essentiality of examination of the evidence with particular care by the Court of Appeal in deciding the assailment against acquittal, it has however been underlined that once the Appellate Court comes to the conclusion that the view taken by the lower court was clearly unreasonable, then that by itself would be a compelling reason for interference. It was highlighted that it is a court's duty to convict a guilty person when the guilt is established beyond reasonable doubt, no less than it is its duty to acquit the accused when such guilt is not so established. (emphasis supplied) Benami transactions: 232. This Court in Jaydayal Poddar (Deceased) through LRs. (supra), enunciated that it is well settled that the burden of proving that a particular sale is benami and the apparent purchaser is not the real owner, always rests on the person asserting it to be so. The burden has to be strictly discharged by adducing legal evidence of a definite character which would either directly prove the fact of benami or establish circumstances unerringly and reasonably raising an inference of that fact. It was propounded that the essence of a benami is the intentio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... H OF EXPERT EVIDENCE 235. In re the probative worth of experts evidence, a host of decisions in Mahmood Vs. State of U.P., (1976) 1 SCC 542, Chatt Ram Vs. State of Haryana, (1980) 1 SCC 460, State of H.P. Vs. Jai Lal & Ors., (1999) 7 SCC 280, Ramesh Chandra Agrawal Vs. Regency Hospital Limited & Ors., (2009) 9 SCC 709, and Dayal Singh & Ors. Vs. State of Uttaranchal, (2012) 8 SCC 263, have been cited at the Bar. As all these decisions postulate identical propositions, the gravamen of these authorities would only be referred to avoid inessential prolixity. These renderings explicate that an expert is one who has made a subject upon which he speaks or renders his opinion, a matter of particular study, practice or observation and has a special knowledge thereof. His knowledge must be within the recognized field of expertise and he essentially has to be qualified in that discipline of study. It has been propounded that an expert is not a witness of fact and its evidence is really of an advisory character and it is his duty to furnish to the Judge/Court the necessary scientific criteria for testing the accuracy of the conclusions so as to enable the Judge/Court to form his/its indepen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome so computed, it transpired that an amount of Rs. 44,383.59 was available with the petitioner for his acquired assets. The admitted assets was Rs. 38,572.46. Here again, under different heads by appreciating the evidence on record and by allowing/disallowing the rival claims, this Court arrived at a figure of Rs. 55,732.25 as the value of the assets. 238. Comparing the income, after adjusting the expenditure that was left with the petitioner i.e. Rs. 44,383.59 with the value of the assets i.e. 55,732.25, this Court held that though the value of the assets exceeded the amount of income, the excess was comparatively small and less than 10% of the total income i.e. Rs. 1,27,715.43 and was of the view that the assets were not disproportionate to his known sources of income so as to justify the raising of the presumption under Section 5(3). The petitioner was acquitted. 239. The narration of the judgment clearly indicates that this Court had assessed the evidence on record by itself on the items of dispute pertaining to income, expenditure and assets and had recorded its own independent findings. In most of the items, where this Court had rejected the contention of the prosecution ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arately noted, as distinguished from the income of A2, A3 and A4. In view of the fact that the respondents accept the income of Rs. 9,34,26,053.56 as cited by DVAC and there is no dispute with regard thereto, it is not necessary to examine the evidence of the prosecution in support of its figures. 243. As the income cited by the DVAC is not disputed and the case of the respondents is based on the additional income under the seven heads, as cited by them and accepted by the High Court, it would, thus, be necessary to examine the evidence in respect of those additional heads along with the findings of the Trial Court and the High Court. Vis-a-vis the income, there appears to be three facets: (i) the income as listed by the DVAC (ii) The additional heads of income taken note by the High Court and (iii) The heads of income introduced in evidence by the defence also supplementing the earlier two heads. The income, as mentioned by the DVAC, to reiterate is not disputed by the defence. The respondents however seek to take advantage of the additional heads taken note of by the High Court to boost the income further. 1. Income from Grape Garden: 244. This item of income has been ment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have adopted NABARD norms in assessing the cost of cultivation and the yield. In cross-examination, he however conceded that he had not enclosed the inspection report of PW 165 along with his report Ex. P-938 and also that his evaluations were approximate and probable. PW 256 stated that he on the request of PW 165 and Sanjay Kumar had estimated the value of the produce of the grape garden. 248. The Trial Court examined the plea on behalf of A1 that Ex. P-938 was not worthy of acceptance as it was not accompanied by any final report and also in absence of any explanation of the prosecution for such omission. It examined as well, the plea based on the income tax returns of A1 and the orders of the assessing officer accepting the same and that eventually on the basis of the said returns and the orders, the income from the grape garden was found to be Rs. 52,50,000. The evidence adduced by the defence may at this stage be briefly referred to. 249. Vide Exbs. D-61 to D-64, the orders passed by the concerned income tax authorities/forums, eventually the claim of agricultural income of A1 on the basis of the particulars furnished in her returns for the relevant assessment years i.e. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of A1, she had failed to produce the best evidence available to her. The Trial Court was thus of the view that there was no worthwhile evidence to accept the claim of A1. The above conclusion notwithstanding, the Trial Court took note of the fact that A1 had been holding 14½ acres of agricultural land and that she had been growing grapes thereon. It referred to copies of the pahanis Exb. P2251 to P2258 in support of her stand that grapes were being grown on the land involved. The Trial Court was of the view that her entire claim cannot be rejected for her failure to produce convincing documentary evidence. It took note of the fact from the reports, that 10 acres of land were being used for cultivation of grapes at the relevant time. Having regard to the likely cost of cultivation and the fluctuating price prevalent during the check period, the Trial Court made a rough estimate of income from the grape garden at Rs. 20,000/- per acre per annum and on the basis thereof, quantified the agricultural income for the check period of five years at Rs. 10 lakhs during the check period, thus enhancing the income from Rs. 5,78,340/- cited by the prosecution. 252. The High Court, on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... involved by the respondents constitutes loans in addition to the bank loans cited by DVAC as taken note of by the High Court to add Rs. 18,17,46,000 to the income of the respondents. This item of income significantly is suggestive of the collective orientation of the respondents qua the charge as one corporate unit. The tone and tenor of the contents of the applications for loan and the composition of the firms/companies availing the benefit thereof, suggest that the respondents were in collaboration with each other in the transactions which demonstrate their combined involvement therein. 257. Here, according to the prosecution, there are two aspects, firstly there is a duplication as DVAC has included these loans in its chart which have been considered by the Trial Court and secondly, even otherwise, the High Court committed a mistake in adding up the loan amounts of these additional 10 heads to arrive at a figure of Rs. 24,17,31,274 which on a correct calculation, ought to be Rs. 10,67,31,224/-. 258. Noticeably, these additional loan amounts have been availed of by A1, M/s Sasi Enterprise and other firms like M/s Jaya Publications, M/s Jay Real Estate, M/s J.S. Housing, M/s J. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hs providing the necessary particulars in the annexure appended thereto. Exb. P-1162 discloses that medium term loan of Rs. 25 lakhs was sanctioned by the bank but as on 22.11.1995, an amount of Rs. 5 lakhs had been disbursed, as is evident by Exb. P-1163. The Trial Court has duly dealt with the evidence to this effect while quantifying the income as well as in noting the expenditure by way of interest against this loan. The plea of the prosecution that in the above premise, the High Court was wrong in adding a sum of Rs. 25 lakhs towards the income of the respondents under this head, has to be accepted. Indian Bank - J.S. Housing - Rs. 12,46,000/-: 263. This corresponds to item No. 3 of the heads of income cited by the DVAC vide Exb. P-2329. This loan has been proved by PW 182 through Exb. P- 1171 to 1173.The Trial Court has referred to this evidence while quantifying the income and the expenditure by way of interest on the loan amount as had been listed in Annexure IV (Expenditure) cited by the DVAC. 264. The documents pertaining to this loan transaction authenticate that though an amount of Rs. 12,46,000/- had been sanctioned by the bank, it had released only a sum of Rs. 7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the list of income furnished by the DVAC. PW 182 has deposed about this loan through Exb. P-1349 to P-1354. The statement of account of Ramraj Agro Mills Limited is Exb. P-1354. This has been corroborated as well by PW 235 who has stated that an amount of Rs. 1.65 crores had been sanctioned as loan. There is, however,no evidence with regard to the disbursement of any amount qua the loan sanctioned. In any case, the amount due to the bank at the relevant point of time in this account was Rs. 39,10,781/-. Therefore, addition of amount of Rs. 1.65 crores, by no means, as done by the High Court, can be said to be justified. 269. There is no discussion about this head of loan by the Trial Court presumably due to the absence of any evidence with regard to disbursement of any amount in connection therewith. The High Court, however, has added an amount of Rs. 1.65 crores without even referring to the evidence to ascertain as to whether any amount out of the loan sanctioned, in fact had been released in favour of the firm involved. In any case, examination of Exb. P-1354, the statement of account of Ramaraj Agro Mills Private Limited pertaining to this loan, discloses that, at the releva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a of the respondents that the income from private sources had not been considered at all, is thus untenable, more particularly in absence of any challenge by them against the above exclusion by the High Court. GIFTS: 273. The next additional item of income indicated by the High Court is gifts offered to A1. The defence has introduced this item of income against receipts on the birthday of A 1 on 24.2.1992, claimed to have been celebrated on a grand scale as it was her first birth day as the Chief Minister of the State for the said term. Gifts by way of jewellery and cash in particular have been claimed to have been received. Foreign remittance also has been assimilated. The evidence adduced by the defence includes testimony of members of AIADMK party, of which at the relevant time, AI was the General Secretary. The decipherable pattern of the evidence adduced by the members of the AIADMK, who claimed to have contributed along with about 300/350 donors is that their contributions were collected by the concerned office bearers of the party and thereafter the amount was converted into demand draft in the name of A1. It is, however, deducible from the evidence which is almost stereo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y income statement. Be that as it may, this exhibit i.e. P-2140 also on the above reasoning, has taken note of this amount and this receipt as gift has been subjected to tax by taking the same to be income from undisclosed sources. 278. The attempt on the part of the defence to prove the income tax returns and the assessment orders, as above, is to show that receipts by way of cash, demand draft, jewellery, silverware etc. had been a normal feature on every birthday of A1 in view of the respect and esteem earned by her as a political personality and an adorable leader. 279. Incidentally, the CBI, vis-a-vis the claim of receipt of Rs. 1.5 crores as income from gifts had filed a charge sheet against A1 constituting the same to be an offence under Section 11 of the 1988 Act. The High Court, however, had quashed the proceedings on the ground of delay in the investigation and the CBI has filed a Special Leave Petition before this Court, being SLP (Crl.) Nos. 1163-1168 of 2012 which is pending adjudication. This fact was not brought to the notice of the High Court, passing the impugned order herein. Noticeably again, as the prosecution asserts, in view of the 'Explanation' to S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot acquainted with the true facts of the case and was incompetent to speak about the gifts received by A1 or the income tax returns said to have been filed by her, as he was not her auditor at the relevant point of time. The Trial Court examined as well the relevant returns and the orders passed by the concerned income tax authorities and rightly noted that there was no mention of the alleged presents/gifts in the return of A1 for the assessment year 1992-93 at the first instance. However the factum of receipt of jewellery as gifts for the period of the wealth tax return of 1991 was taken note of. The letter dated 18.3.1994 of A1 reiterating that she had received cash/DD/jewellery/silverwares in various years as personal gifts on her birthdays and that she had disclosed the same in her wealth tax returns and had paid the wealth tax, also was considered by the Trial Court. It however, took note of the observation made in Ex. P-2145 that the returns claiming birth day presents were not filed in the respective assessment years but long after and that for the first four years, i.e. assessment years 1987-88 to 1990-91, there was no mention of cash presents and that it was limited to jew ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. It seems to have been convinced as well by the contention that there was a practice of offering gifts to political leaders on their birthdays in the State. Not only is the ultimate conclusion of the High Court, de hors any independent assessment of the evidence to overturn the categorical finding of the Trial Court to the contrary, no convincing or persuasive reason is also forthcoming. This assumes significance also in view of the state of law that the findings of the income tax authorities/forums are not binding on a criminal court to readily accept the legality or lawfulness of the source of income as mentioned in the income tax returns by an assessee without any semblance of inquisition into the inherent merit of the materials on record relatable thereto. Not only this aspect was totally missed by the High Court, no attempt seems to have been made by it to appraise the evidence adduced by the parties in this regard, to come to a self-contained and consummate determination. 286. Exb. P-2145 is the order dated 25.3.1996 of the CIT (appeals) rejecting the explanation of A1 with regard to the gifts said to have been received by her by way of cash, demand draft, jewellery, silve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... derlying objectives of this lagislation be accepted as a lawful source of income. To reiterate, disclosure of such gifts in the income tax returns of A1 and the orders of the income tax authorities on the basis thereof, do not validate the said receipts to elevate the same to lawful income to repel the charge under Section 13(1)(e) thereof. The reliance of the defence on the decisions of this Court in M. Krishna Reddy (supra) and Kedari Lal (supra), in the facts and circumstances of the case, is of no avail. 288. This Court while dilating on the permissibility of acceptance of presents by public servants, proclaimed in R.S. Nayak (supra), that if the same is allowed, it would facilitate circumvention of the prohibition of acceptance of bribe in the shape of present/gift. An analytical insight into the ingredients of Sections 161 to 165A of IPC, then on the statute book as a part of the Code was undertaken to propound that the ambit of Section 165 was wider than that of Sections 161,162 and 163 IPC and was intended to cover cases of corruption. It was elaborated that the difference between the acceptance of bribe made punishable under Section 161 and 165 IPC was that under the form ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 12,68,800/-, the DVAC had accepted only Rs. 6,15,900/- as reflected against item Nos. 59, 61 and 62 of the schedule of income furnished by it. 293. DW-88 K. Soundravelan claimed to be a Chartered Accountant since 1992 had deposed to have handled the accounts of Jaya Publications and Sasi Enterprises and also the personal accounts of A2 and the firms concerning her. He is stated to have been involved in the finalisation of accounts of the above assessees. He generally identified the various exhibits like income tax returns, profit and loss accounts, balance sheets and the orders of the income tax authorities in connection therewith. He also stated with regard to the business in which Sasi Enterprises was involved in the name of FAX Universal. He referred to a lease agreement of one TSR Vasudevan with Sasi Enterprises in the year 1990 for carrying out agricultural operations and also a copy of the certificate issued by the Tehsildar of Villupuram with regard to the leasehold lands. He identified as well the documents produced by the firm indicating recovery of a part of the loan advanced to one Nagammal and Subramaniam. Noticeably, his testimony was based on the contents of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the plea of recovery of loan, the defence had mainly endeavoured to substantiate the claim of income under the aforementioned head on the basis of the profit and loss account, there being no other tangible proof either of grant of loan or the repayment thereof. That the defence had neither examined the loanee nor had produced any material in support of the transaction was recorded. It also discarded the profit and loss account in support of the plea of the defence that an amount of Rs. 16,91,000/- had been recovered out of the loan advance to Nagammal and Subramanium. 297. The Trial Court rejected the lease agreement between TSR Vasudevan and Sasi Enterprises, amongst others, on the ground that the claimant's lease was for a period of 11 months which was impermissible under Section 107 of the Transfer of Property Act. Further there was no acceptable evidence that the land had been cultivated to claim agricultural income. The letter of the Tehsildar, Vellupuram Ex. 259 certifying that A2 was a lessee of the land involved from 1980 to 1988 was also rejected in absence of any evidence that the lease, the original term whereof had expired on 21.7.1992, had been extended thereafte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the basis thereof, are not final and binding on the criminal court, the investigative approach of the Trial Court visibly has been relatively exhaustive and searching qua every piece of evidence adduced as expected. Though the orders of the income tax authorities on the various aspects of the issue under consideration, reveal examination of the materials considered to be relevant therefrom in the limited perspective of computation of taxable income alone, we are left with the impression that High Court has not made any endeavour to appraise the evidence available, independent of documents/records pertaining to income tax assessments and the decision of the tax authorities to arrive at its conclusions. The income tax returns and the appendices thereto as well as the orders of the income tax authorities, to reiterate are neither decisive nor binding on the criminal court and the facts narrated therein, if fall for scrutiny in a criminal proceeding, have to be essentially addressed by adducing evidence to prove or disprove the same, as the case may be. Correspondingly, the court would be legally obliged to undertake an incised scrutiny thereof on its own to record its deduction ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 43,75,132/-, the prosecution had taken this figure to be Rs. 40,01,127/-. It however declined to interfere on the ground that rental income was taxable under the Income Tax Act. The High Court, on the other hand, without any discussion of the evidence added Rs. 3,22,000/- to the rental income as the prosecution had omitted to do so. 306. In our view, as the evidence adduced by the defence did establish that Rs. 43,75,132/- had been paid as rent for the two premises in question, as identified under item nos. 53 & 54 in the list of income provided by the DVAC, the High Court was justified in adding Rs. 3,22,000/-. Income of Jaya Publications and Namadhu MGR: 307. The appellant-State has also taken exception to the addition of an amount of Rs. 4 crores by the High Court towards income of Jaya Publications and Namadhu MGR in addition to the figure cited by the DVAC. 308. Jaya Publications is the proprietorship firm of which, at the relevant time, A1 and A2 were partners. As per the deed of partnership, it carried on business of all types of printing and publication of newspapers/magazines/ periodicals etc. and such other business or businesses to be mutually agreed upon betwe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stated that the assessing officer did not accept the claim of scheme deposit for the assessment year 1991-92 by his order dated 26.3.2001. But the concerned C.I.T. (Appeals), in the appeal filed by the assessee, accepted the claim of scheme deposit subscription. Similarly, the CIT (Appeals) did uphold the claim of the assessee for the assessment years 1992-93 and 1993-1994. 311. Qua the assessment years 1994-95 to 1996-97, according to this witness, the assessing officer partially allowed the claim which was upheld in the appeals by the CIT (Appeals). Eventually, the Income Tax Appellate Tribunal, BBench, by a common order, accepted the claim of the assessee regarding the deposit scheme except in respect of 41 depositors, who denied to have made such deposits. The witness did disclose that the matter was remanded to the assessing officer with a direction to afford an opportunity to the assessee to cross-examine these 41 depositors. The witness admitted that such enquiry was pending. He, however, deposed that under the deposit scheme, Jaya Publications collected an amount of Rs. 14,23,89,000/- over the period of six years. 312. The witness disclosed that the main source of income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment year 1995-96 was also filed only on 17.3.1999 much belatedly, was noticed as well. The Trial Court mentioned and rightly that this return as well as the return for the assessment years 1996-97 i.e. Ex. D-222 and D-223 did not mention about the scheme deposit. That the defence, however, separately got marked the profit and loss accounts for the years ending 31.3.1994, 31.3.1995 and 31.3.1996 vide Exb. D-224, D-225 and D-226, was taken note of. The Trial Court, however, left out of consideration these documents i.e. profit and loss accounts, aforementioned firstly because those were only attested copies and secondly, as those did not disclose in any manner, to have been filed with the corresponding return before the income tax authorities or produed before them at any point of time. 315. The evidence of the 31 witnesses with regard to the deposits made by them of amounts varying from Rs. 12000/- to Rs. 18000/- is more or less of the same model and owing allegiance to the AIADMK party. Some of them also proved their application for becoming subscribers but though they stated to have been issued receipts for the deposits made, none produced the same. 316. The Trial Court, in a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es of the income tax authorities. Further Exb. D-228, the claimed list of subscribers also did not contain the seal and signatures of Jaya Publications. That the original subscription applications contained in Exb. D-230(1) to Exb. 230(17) had not been produced before the income tax authorities but their xerox copies were only produced, was noted as well. The Trial Court was categorical in bringing on record the fact that it was only after the CIT (Appeals) had set-aside the assessment order i.e. 3.3.1988 rejecting the claim of scheme deposit of the assessee on 15.9.1998 that Jaya Publications filed its returns for the assessment years 1991-92, 1992-93, 1993-94 on 6.11.1998 mentioning for the first time such deposits. That in the course of the scrutiny thereafter, in response to the notice issued by the assessing officer, Jaya Publications did not produce the originals of the applications and the counter-foils of deposits but only copies, was taken note of. 318. The Trial Court also analysed the evidence of PW 201 C.K.R.K. Vidya Sagar, an officer of the Canara Bank, Mylapore Branch disclosing the transactions of heavy amounts inter se the accounts of Jaya Publications, Namadhu MGR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the oral evidence of the 31 witnesses claiming themselves to be the depositors/subscribers for the newsletter, returned a finding that the whole claim of the assessee could not be rejected only on the ground of delay in filing of the income tax returns. Acting solely on this consideration, the High Court, thus allowed addition of a sum of Rs. 4 crores as income of Jaya Publications. 321. Not only as referred to hereinabove, in our view, the Trial Court had been alive to the relevant materials bearing on this issue and had founded its conclusions on elaborate scrutiny thereof, its criticism by the defence that it had left out of consideration amongst others, the oral evidence of PWs 201, PW-230 and DW2 to DW67 and DW88 is not acceptable. The grievance with regard to non production of the report of the internal auditor of the DVAC about the affairs of Jaya Publications and the accounts of Namadhu MGR as adverted to by PW 259 in his testimony, is also not of any conclusive relevance. Not only the absence of the report does not prove the defence plea, significantly, no endeavour was made on behalf of the respondents to summon the said report. The contention that the omission on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... prises) on various dates during the check period. 324. Having regard to the overall evidence with regard to the scheme deposit and the free flow of funds from the account of Namadhu MGR to the respondents and their firms, the concurrent conclusions of the Trial Court and the High Court against this source of income, as claimed by the defence, appear to be unexceptionable. 325. Significantly, though the High Court had rejected this source of income also on scrutiny of the materials on record albeit less exhaustively compared to the Trial Court and noticing as well the unexplained belated submission of the income tax returns of the relevant years, the said finding has remained unchallenged by the respondents. 326. At the cost of repetition, having regard to the conspectus of facts pertaining to this issue, the Trial Court was within its authority and being obliged in law, rightly scrutinised the evidence independently to assay the genuineness or otherwise of the claim of scheme deposit made by Jaya Publications. Considering the different phases of the process undertaken by the income tax authorities, the failure of the assessee to produce the primary documents in original before t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enhanced claim of Rs. 77,40,135/- as her income by way of interest in absence of any other reliable evidence to that effect. Even assuming that the contention on behalf of this respondent that profit and loss accounts were indeed part of the respective income tax returns and had, in any case, been separately tendered and marked in evidence at the trial, in law the same per se was not an unassailable authentication of the probative worth of the contents thereof, so much so to repudiate the approach of the Trial Court to be incurably erroneous. Further the High Court seems to have omitted to adjudicate this issue. 329. To reiterate, as the scrutiny of the evidence on record in a trial on a charge under the 1988 Act, coupled with the imputation of conspiracy and abetment has to be essentially in the perspectives attuned to the ingredients of the offences involved and not divorced therefrom, unreserved reliance on the disclosures of income in the income tax returns and the orders passed thereon by the income tax authorities would be an approach not in accord with law. The omission on the part of the prosecution to object either to the admissibility of the income tax returns/orders or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Trial Court noted as well that the company did receive periodical lease rent of Rs. 1500/- p.m. from other equipments given on hire. The lease agreements to this effect were also considered. The claim that the company had supplied equipments to Tamil Nadu Tourism Development Corporation Limited was recorded. The copies of the assessment orders exhibited were examined and the Trial Court concluded that there was no reason to doubt the business transactions carried on by A2 and A3 in the name of Super Duper T.V. Private Limited. It, however, recorded with reference to the assessment orders relied on by the defence i.e. Ex. D-182, D-183 and D-184 that those were belatedly submitted after the charge sheet was filed on 4.10.1997. 333. Vis-a-vis the claim of the defence that the amount of Rs. 1,06,10,100/- as business income was available with A2 and A3 in addition to other incomes, the Trial Court noted, amongst others, that as per the Cable Television Network Rules, 1994 enforced on and from 29.4.1994, only refundable security deposits was permissible and that though receipt books and counter-foils of the payee-in- slips to show that the amount of Rs. 5000/- each collected from lar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claimed by the company and the feasible investments thereof. It also took note of the huge inflow and outflow of cash to and from the accounts of the firms/companies of which the respondents were partners/directors during the check period so much so that the income claimed by A3 under this head ceased to retain its independent identity so as to be accepted as the discernible earnings of the company for transacting its business activities as a distinctly separate institution. The revelation regarding the bank transactions are matters of record gleanable from the oral and documentary evidence to this effect and, in our estimate, assume great significance in the backdrop of the charge of conspiracy and abetment imputed against the respondents. The summary treatment of the evidence on this issue by the High Court, in our comprehension, lacks the desired approach and insight and,therefore, cannot be sustained. The addition awarded by it of income of Rs. 1,00,00,000/- to Super Duper T.V. Pvt. Limited, thus cannot be upheld. Refund of Wealth Tax to A1: 337. Respondent No.1/A1 has pleaded addition of further amount of Rs. 1,35,631/- by way of refund of wealth tax as on 22.4.1993 and to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , P-1382, P-1117 have been referred to for demonstrating the receipts/deposits of various amounts from A2, Fresh Mushroom Limited and Vinod Video Vision. 341. Admittedly, A2 was the sole proprietor of both, Fresh Mushroom and Vinod Video Vision at the relevant time and thus the deposits, though speciously are evidenced by bank transactions are visibly, inter se, A1 and A2 and her firms. These receipts essentially have to be tested in the backdrop of the charge of conspiracy and abetment so as to determine their genuine evidential worth. 342. As referred to hereinabove, this Court in Commissioner of Income Tax Vs. P. Mohanakala (supra), while examining the challenge to the addition made by the Assessing Officer in respect of receipts through foreign gifts, exhibited by bank transactions, held on an evaluation of the materials on record that the transactions of gift were not real, though apparent and concluded that the fact that money had come by way of bank cheques and had been paid through the process of banking transaction by themselves was no certificate of authenticity. While comprehending that a transaction though apparent may not be real, as may be demonstrated by contempora ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deposit with the said financial institution on 6.3.1992. This, as the Trial Court has, brought on record is vide the testimony of PW-95 Veerappan, Regional Manager, CANFIN Homes. This witness has disclosed further that the above loan amount was taken on this fixed deposit. He stated that on 25.8.1995, A1 again took loan of Rs. 75 lakhs on this fixed deposit, however qua a different loan account. 346. In re the third head, admittedly Namadhu MGR is only a publication of Jaya Publications but has a separate bank account. A1's claim of having drawn Rs. 94,33,000/- as well from Namadhu MGR is seemingly also in the capacity of a partner of Jaya Publications. 347. The deposits and withdrawals represented through the different entries in the bank accounts suggest multiplication of transactions stemming from the same corpus. The maze of financial exchanges in fragments involving different combinations hint at the attempt to inflate individual and collective income of the respondents. The banking transactions, though resorted to for proclaiming genuineness thereof, having regard to the overall factual conspectus do not appear to be real. The claim of income of Rs. 2,70,82,900/- of A1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vance received by the firm have also been included. Loan availed by J. Jay T.V. Private Limited from Indian Bank, non-refundable deposits obtained from the subscribers by Super Duper T.V. Private Limited have been taken into account as well to compute the income claimed. 351. In reinforcement of the plea that an amount of Rs. 26,50,57,478/- by way of income of A2 to A4 ought to be added, a collage of statistics qua the different heads of earnings/ receipts had been pressed into service. For the sake of convenience in scrutiny, these are proposed to be dealt with in cognates groups. 352. Vis-à-vis the item numbers 1 to 21, according to the respondents, the High Court had dealt therewith in the judgment but except for the item number 8, according to them, the Trial Court did not even consider the evidence relatable thereto. The sources of income against item numbers 1 to 5 are traceable to the income tax returns of A2 for the assessment years 1992-93, 1993-94 and 1994-95. The income pertains amongst others to foreign remittance of Rs. 51,47,955/- and agricultural income of Rs. 35,000/- of A2. Documentary evidence in particular by way of income tax returns and the orders of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ionalized banks as income of the respondents. Though a reference has been made of loans availed by the respondents from various firms as named therein, the High Court had not taken into the account the same and had limited itself only to the loans availed by the respondents from the nationalized banks. In that view of the matter, the items of income under scrutiny, had also been left out of consideration by the High Court. Thus the grievance of the respondents that the evidence with regard to these items of income had not been considered by the Trial Court, is not of decisive significance more particularly in absence of any challenge made by the them to the omission as well of the High Court in this regard. 356. In course of the arguments, attention of this Court had been drawn to the Remittance of Foreign Exchange and Investment in Foreign Exchange Bonds (Immunities and Exemptions) Act, 1991. This is a statute to provide for certain immunities to persons receiving remittances in foreign exchange and to persons owning foreign exchange bond and for certain exemptions for direct taxes in relation to such remittances and bonds and for matters connected therewith or incidental thereto. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t years and also the corresponding assessment orders. It has been contended as well that the Trial Court had wrongly left out of consideration the evidence adduced. It has been pleaded that the Trial Court had erred in discarding the transactions by referring to Sections 269SS and 276DD of the Income Tax Act. According to the respondents, the transactions having been effected through cheques, Section 269SS of the Act had no application and further Section 276DD having been deleted by the Direct Tax Laws (Amendment) Act 1987 w.e.f. 1.4.1989, reference thereto, the transactions being undertaken thereafter, was wholly misplaced. 361. Per contra, according to the prosecution, the agreement for sale of property Ex. D-300 against which, it is claimed that an amount of Rs. 22 lakhs had been received by way of advance from Bharani Beach Resorts, has not been proved in law. DW88 being neither the executant nor a witness to the document, the prosecution has pleaded, he could not have proved this document. Alluding to the advances said to have been received by A2 from Riverway Agro Products (P) Limited and M./s. Meadow Agro Farms (P) Limited, the prosecution has underlined that A3 and A4 are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such payments feasible. Further, the statements of accounts produced show that all these accounts had been opened on the same day i.e. 20.3.1995 with cash deposit of Rs. 501 and that there had been a credit entry of Rs. 20,99,980/- and a debit entry in favour of A2 on 20.8.1995. Apart from this common feature in all these nine accounts, at the relevant time, A2 to A4 and Lex Property Developers (P) Limited were the partners thereof. It has also been urged that A3 and A4 were the directors of Lex Property Developers (P) Limited and all the nine firms were registered on the same day i.e. 15.2.1995 with the common address of No. 21, Wellington Plaza. 366. The opposition registered by the prosecution in view of the recorded facts which bear out unusual striking features of similarity of the nine firms and their constitution can by no means be lightly disregarded by construing the same to be a mere co-incident. 367. To reiterate, whereas the remonstration of the respondents is that the Trial Court did leave out of consideration the evidence in support of this source of income, the High Court as well did not refer thereto. 368. Vis-a-vis the income by way of Rs. 2,90,000/-by A2 from t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pened during the check period in the names of the firms/companies of which A1, A2, A3 and A4 were partners/directors as would appear from the table referred to. The bank account of Bharani Beach Resorts i.e. C.A. 9006 was opened 6.2.1995 and noticeably, as claimed by A2 to A4, as per the compilation relied upon, loan was advanced by the said firm on 18.3.1995 to A3. To reiterate, the High Court did not at all advert to the oral and documentary evidence sought to be relied upon by A2 to A4 in this regard. 372. Qua item numbers 52 to 54, which are loans availed by A4 from Iyyeppa Property Development, Bharani Beach Resorts (P) Ltd and Housing and Real Estate Development (P) Ltd. during the financial year 1995-96 to the tune of Rs. 62 lakhs, the prosecution in response to the oral and documentary evidence sought to be relied upon by A2 to A4, has sought to dismiss these transactions as mere exchange of funds, inter se accounts of A2 to A4 and their firms by giving the same a colour of loan transactions. These items as well have been left out of consideration by the High Court as is evident from the impugned decision. 373. With regard to the item of income by way of hire charges at s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Jaya Publications in three installments on 29.9.1993, 23.1.1994 and 23.2.1994. Apart from noticing the fact that M/s Jaya publications had not filed the income tax returns for the relevant years, the Trial Court noted as well that in the confirmation letter Ex. D-278, the sources of funds available with Jaya Publications for making such advances to Anjaneya Printers had not been disclosed. Referring to this document, further, the Trial Court recorded that during the search operations of the premises of Anjaneya Printers, no regular books of accounts was found and that consequently the assessing authority had held that the computerized copy of the accounts produced by the authorised representative of the assessee company would have to be construed as not written in the normal course of business. The Trial Court thus in this backdrop entertained a doubt with regard to the business operations of this company as claimed by it so as to render its claim of income under these items to be unacceptable in law. To reiterate, the High Court did not deal with the oral and documentary evidence in this regard. 377. So far as item number 60 is concerned, which according to A2 to A4 is income of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s regard. The High Court readily acted upon the letter of confirmation of accounts issued by M/s Housing Real Estate Development (P) Limited and also the balance sheet of Sasi Enterprises indicating that an amount of Rs. 2 lakhs had been received by way of unsecured loan from Lex Properties Development Private Limited. No attempt was made to examine the credibility of the documents in the context of the charges levelled. 384. The respondents have next claimed income of Rs. 75 lakhs by way of capital introduction in Sasi Enterprises by A1 on 29.9.1992. According to them, this amount was contributed by way of capital by A1 which she had availed as loan from CANFIN Homes Limited against her fixed deposit of Rs. 1 crore. Reliance had been placed on the bank accounts of Sasi Enterprises showing the receipt of Rs. 75 lakhs as capital contribution by A1 as its partner during the check period. 385. The prosecution has dismissed this transaction as inter se transfer between the accounts of A1, the partner of Sasi Enterprises and the said firm, so much so that it could not be construed to be a genuine income. The High Court did not deal with the oral and documentary evidence to this effect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /- ought to be included in their total tally of income. 390. Per contra, the prosecution has refuted this claim on the ground that the balance sheets adduced before the income tax authorities were all belatedly prepared as had been admitted by DW-88 and thus cannot be accepted to be authentic to sustain this item of income of A2 to A4. 391. The Trial Court rejected this claim inter alia on the ground that the respondents had failed to produce any lease deed or rent receipt as acceptable proof of such income and has analysed the oral and documentary evidence offered by A2 to A4 in this regard. The High Court however relied principally on the income tax returns and the statement of income and the balance sheet of the concerned years to accept this claim. 392. A2 to A4 have next claimed a sum of Rs. 9,72,550/- as the agricultural income of M/s Sasi Enterprises during the assessment years 1992-93 to 1996-97. Whereas according to the concerned respondents, the income tax returns as accepted by the income tax authorities adequately demonstrate the agricultural income of the firm, the prosecution has dismissed this claim contending that the income tax returns, the statement of income a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1.1.1997 and 26.9.1997 respectively. Whereas the respondents assert that the income tax authorities having accepted these returns, this amount of Rs. 2,39,701/- ought to be added to the income of Sasi Enterprises during the check period, the prosecution has rejected the claim on the ground that the belated income tax returns and the corresponding balance sheets lack in credibility and thus cannot be accepted as evidence in support thereof. 397. The Trial Court duly noted this head of income along with the other sources of income of the firm. It dealt with amongst others the oral testimony of DW-88 and on a comprehensive scrutiny of the evidence adduced, declined to accept the same in absence of any authenticated proof in support thereof. While dealing with the other sources of income as well, the Trial Court refused to rely on the income tax return, the statement of income, the balance sheet and the profit and loss account for the concerned assessment years doubting the genuineness of these documents/records. This was more so, according to the Trial Court, in absence of any other independent and cogent evidence in support of the claim of income made by the firm. 398. The High Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the claim of income from the deposits made by the subscribers under the scheme, the High Court, however did not reject the claim of the respondents as a whole and awarded a sum of Rs. 4 crores as income earned by Jaya Publications acting solely on the evidence of the ardent party workers de hors any independent corroboration. 402. The Trial Court noted the different sources of income of Jaya Publications with the corresponding figures and exhaustively assayed the evidence, oral and documentary in connection therewith. It analysed the oral evidence of the depositors under the scheme as well as the income tax returns, the profit and loss accounts of the corresponding assessment year, the orders passed by the income tax authorities and eventually rejected the claim wholly, taking the view that the evidence adduced in support thereof did not commend for acceptance. It noticed as well the fact that the income tax returns of the firm had been submitted much beyond the time statutorily prescribed and in particular, after the case had been registered against the respondents. In this context, it noticed the inflow and outflow of funds from and to the current account of Jaya Publicatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . As per T.C. Rs. As per H.C. Rs As per Respondents Rs. 1 Immovable Property (Consideration, cost of registration) 22,83,99,174.70 20,07,80,246 6,24,09,120/- 16,19,03,301 2 Cash paid over and above sale consideration 2,53,80,619/- 1,58,30,619 nil NIL 3 New or additional construction of buildings 28,17,40,430 22,53,92,344/- 5,10,54,060/- 8,60,59,261/- 4 Gold and Diamond jewellery 5,53,02,334.75 2,51,59,144/- As per prosecution NIL 5 Silverwares 48,80,800/- 20,80,000/- As per prosecution NIL 6 F.Ds. and shares 3,42,62,728/- 3,42,62,728 As per prosecution 2,30,00,000 7 Cash balance in bank accounts 97,47,751.32 97,47,751.32 As per prosecution 97,47,751.32 8 Vehicles 1,29,94,033.05 1,29,94,033.05 As per prosecution 81,35,106 9 Machinery 2,24,11,000 2,24,11,000 As per prosecution 94,25,835 10 Footwears 2,00,902.45 Nil. Nil. NIL 11 Sarees 92,44,290.00 Nil. Nil. NIL 12 Wrist watches 15,90,350.00 15,90,350 As per prosecution Nil. TOTAL 68,61,54,413.27 55,02,48,215/- 25,46,52,177/- 29,82,71,254.32 408. The judgment of the High Court at page 966 reveals that it has for the purposes of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of buildings in the list of assets demands scrutiny. As mentioned hereinabove, though the High Court had altered the value of five out of twelve items, in the ultimate quantification, it did focus only on the item of new or additional construction of buildings and computed the worth thereof to be Rs. 5,10,54,060/- against Rs. 22,53,92,344/- adjudged by the Trial Court. According to the prosecution, however, the investment on this count had been Rs. 28,17,40,430/-. Significantly, the respondents had valued this item of their assets at Rs. 8,60,59,261/- which is about Rs. 3.5 crores above the valuation made by the High Court. 413. Be that as it may, whereas the prosecution had listed out twenty one items under the head new or additional construction of buildings, the Trial Court took note of eighteen items and the High Court of seventeen items as would be adverted to in details hereafter. The total construction area of these twenty one items, according to the prosecution is 23,076.84 sq. meters which is equivalent to 2483.97 squares. The area of four items left out by the High Court when deducted from the total area of 2483.97 squares calculate to 2174.69 squares. However, the H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of supporting particulars in the reports rendering them sterile and worthless being of no probative worth, absence of any scientific or laboratory tests convincingly demonstrating the age of the buildings to correctly appreciate the value thereof, absence of any basis for calculating the price of non-scheduled items etc. Vis-a-vis the price of non-scheduled items in particular, it has been asseverated that though the valuers had deposed that with regard thereto, market enquires had been made and the inputs had been recorded in a paper or a note book, the same had not been retained but destroyed and were not enclosed with the corresponding reports. The assessment of the price of the non-scheduled items has thus been dismissed to be not only as being bereft of any foundation but also as mere hearsay. 416. The oral evidence of the prosecution witnesses namely; PW-98, PW-116 and PW-220, amongst others, has been referred to and analysed apart from the reports submitted by the inspection team which as adverted to hereinabove, have been repudiated to be lacking in indispensable datas. Other documentary evidence adduced by the prosecution has also been dealt with. Evidence of defence witn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ew or additional construction of buildings did sum up to Rs. 29,35,68,982/-, the Trial Court taking note of eighteen such items, did quantify the expenditure at Rs. 22,53,92,344/- . As sample instances, the prosecution highlighted the expenditure towards item numbers 179,180 and 181 of annexure II i.e. the list of items of assets acquired during the check period and referring to the oral testimony of PW-98,107 and 166 as well as the reports prepared and submitted by the inspection team i.e. Ex. P-645, P-661 and P-671 maintained that the sum total of expenditure on the basis thereof was Rs. 19,05,84,199/-. Understandably, this figure was included in the total expenditure of Rs. 29,35,68,982/- and had been highlighted as these three items accounted for the major portion of the investments. 418. According to the prosecution, the High Court not only limited its analysis to seventeen out of twenty one items, it also erred in the measurement of the built up area of these items so much so that instead of 2174.69 squares, it proceeded to make the computation on the basis of an area of 1668.39 squares i.e. yielding a short fall of 506.30 squares. In addition thereto, it has been urged on b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f their age and the expertise of the officers undertaking the inspection. Qua the non-scheduled items, according to the prosecution witnesses, the price was ascertained from the market. The demur of the defence that such evaluation was not decisive in absence of the notes of the relevant inputs was however noticed by the Trial Court. For the general items, the contemporaneous PWD schedule of rates prevailing in the districts involved were applied. The defence witnesses who mostly were the members of the same team did not radically differ from the substance of the version of the prosecution witnesses. A marked attribute of the prosecution witnesses, as noted by the Trial Court, was that when examined on their first recall, they seemed to vacillate in their disclosures in the examination-in-chief but reaffirmed the same narration on their second recall. The defence however noticing this demeanour has endeavoured to discredit them as prevaricating and unfaithful witnesses. 420. As had been elaborately appraised by the Trial Court, the evidence of the prosecution witnesses disclose that the members of the inspection team did minutely notice all the salient characteristics of the new/a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the recorded value fixed by the PWD Engineers in respect of the special items and the dispute regarding payments of architects fees and quantified the amount of expenditure to be Rs. 22,53,92,344/-. 423. Noticeably, the exercise undertaken by the inspection team was a massive one chancing minor shortcomings and from the Trial Court's comprehensive narrative of the evidence on record, in our view, its estimate on the basis thereof cannot be said to be perverse. As it is, having regard to the nature and size of the survey, insistence on proof beyond reasonable doubt with mathematical exactitude would be both unwarranted, inexpedient and un-pragmatic. 424. In our comprehension, the appreciation made by the Trial Court of the evidence on record and the final determination of the extent of expenditure incurred cannot be discarded as absurd or implausible. 425. The High Court on the other hand noted the reservations expressed by the defence to the valuation made by the prosecution. It noted the denouncement that the valuation made was highly inflated and that the cost of marbles and granites have been assessed on a very exorbitant measure. The remonstrance that neither any sample ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uted the value of new/additional building with all its accessories and furnishings to be Rs. 5,10,54,060/-. 428. Prima facie thus the plea of the prosecution that in assessing the expenditure of new/additional buildings, the High Court had not only taken a reduced constructed area of 1668.39 sqs. instead of 2174.69 sqs. (for the 17 items considered by it), thereby introducing a shortfall of 506.3 sqs., it also applied the rate of Rs. 28,000/- per square based on the construction cost of a sentry shed, as the base value to work out the amount of investments made towards the new/additional buildings/constructions is borne out by the records. 429. The approach of the High Court on both counts in the face of the evidence on record does not commend for acceptance. By no means, in our estimate, the High Court could have applied the base value of Rs. 28,000/- per square for quantifying the expenditure incurred towards the new/additional buildings/ constructions involved. The adoption of Rs. 28,000/- per square as the base value, which is the cost of construction of a sentry shed, per se is erroneous, having regard to the fact that a sentry shed and the new/additional constructions/build ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e particularly in absence of any evidence that their acquisitions had been made with the funds provided by the respondents. 433. In course of the arguments on their behalf, several disputed items of assets have been highlighted, accompanied by emphatic assertion that either the value attached thereto ought to be excluded wholly or to the extent reduced on the basis of the oral and documentary evidence relied upon by them. 434. A plain perusal of the compilation to this effect reveals that broadly these disputed items can be categorized as "land and building, shares, acquisition of Indo Doha Chemicals and Pharmaceutical Ltd., new/additional constructions, renovation, vehicles, fixed deposits, jewellery and machinery. 435. As has been hinted hereinabove, these assets had been classified under 12 components. The High Court, though had altered the valuations in five of these items, it did ultimately limit its consideration to item No. III (i.e. new/additional construction of buildings) and reduced the cost thereof by Rs. 22,69,34,885. As a corollary, for the purpose of the eventual quantification of the disproportionate assets, the High Court did not consider it essential to invoke ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d not prove that all new/additional constructions had been built during the check period. It has been contended that the valuation of the special items i.e. marbles, granites, sanitary ware, decorative tiles, teakwood etc. in absence of any schedule of rates had been highly inflated without any contemporaneous documents or authenticated proof in support thereof. According to the respondents, the defence witnesses who were members of the inspection team did not support the conclusions recorded in the reports rendering those wholly unacceptable. On smaller items, like vehicles, fixed deposits, jewellery and machinery, the respondents have dismissed the valuations made by the prosecution either on the ground that those had been wrongly exaggerated or had been acquired before the check period. 437. Apropos the above impeachment, the prosecution has reiterated its valuation of the assets and has reconciled to the quantification made by the Trial Court. It has reiterated that the valuation of the constructions had been made by the qualified PWD engineers and that the findings are elaborately contained in the valuation reports, based on exhaustive inspection of all necessary components o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at Rs. 15,000/- and the cost of construction of staircase, pump and overhead tanks at Rs. 40,000/- to be much on the lower side. That the untenable attempt of the defence to represent that ordinary marble and granite had been issued against expensive versions thereof, has been highlighted as well. 440. As indicated hereinabove, the only item apart from the new or additional construction of buildings forming a major component of assets is immovable properties which the prosecution valued at Rs. 19,77,18,164.70 whereas the Trial Court assessed the same Rs. 20,07,80,246/-. According to the High Court, it computed the value to be Rs. 6,24,09,120/-. Noticeably the respondents had indicated the value of this item as Rs. 16,19,03,301/-. Significantly though in all, 146 sale deeds were involved qua the immovable properties figuring therein, the High Court limited its attention only to 97 such deeds and thus left out from its consideration, the remaining 49 sale deeds, while arriving at its quantification of this item of the asset to be Rs. 6,24,09,120/-. 441. To reiterate however the High Court though did accept the valuation of the assets for the purpose of computation to be Rs. 66,44,7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d towards the cost of food, mineral water and tamboolam. c) Cost of 34 Titan watches - Rs. 1,34,565/- d) Cost of stitching charges of wedding dress - Rs. 1,26,000/- e) Cost of 100 silver plates - Rs. 4,00,000/- f) Postal Expenses - Rs. 2,24,000/- 444. In re the erection of marriage pandals, the Trial Court did assess the oral and documentary evidence adduced by the parties. It took note, amongst others, of the testimony of PW- 181 Shri Thangarajan, who was the Assistant Engineer, PWD at the relevant point of time and to whom, according to the witness, the work of estimating the expenses incurred towards the pandals, both at the marriage and reception venues was entrusted. He referred to the measurements of these pandals including amongst others those for VIPs with iron-sheet roof in his report Ex. P-1019 mentioning the estimated cost towards the same and also with regard to the incidental decorative trappings and furnishings. He mentioned as well about the air conditioners used and the chairs with the dining tables arranged at the two venues and assessed the expenditure towards all these at Rs. 5,91,00,000/-. The Trial Court did take note of the cross-examination of this witne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the basis of his bill submitted, he had received payment of Rs. 11 lakhs through cheque issued by A1. Though this witness resiled from these statements in his crossexamination, when recalled and was confronted with this inconsistency, he affirmed his version in the examination-inchief to be correct. 448. PW-184 Mr. Vincent claimed to have lent out ten cars on hire and had received Rs. 27,502/- through cheque signed by A1. This witness too recoiled from this statement in his crossexamination but reverted thereto in his re-examination. 449. PW-185 Prem Kumar did state to have, on the requisition of the Tamil Nadu Guest House lent six cars for rent for four days against which he was paid Rs. 19,211/- through cheque 23.09.1995 issued by A1. 450. The Trial Court next also took note of the evidence of PW-186 Chalapathy Rao who had supplied chairs, tables, cooking wares, vessels etc. for the event as ordered by A3 and Sachitnanandam, PRO of A1 and received payment of Rs. 1,30,000/- by cheque as advance. He also received a further amount of Rs. 57,250/- by cheque issued by A1 and according to him, Rs. 2,65,000/- was still outstanding. This witness too vacillated in his cross-examinatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Trial Court did assess the evidence of PW-237, Jawahar, who at the relevant time, was working as Assistant Secretary to A1 and his office functioned amongst others from her house at No.36, Poes Garden. This witness stated about musical concerts presented by Mr. Srinivas and Mr. A.R. Rahman whom he had met for such arrangement on the direction of A1. He deposed about the printing of invitation cards for the VIPs. He also stated generally about the other features of the marriage including the supervision of the pandal works by Mr. K.P. Muthuswamy, a retired Engineer. This witness too had resiled from the above, in his cross-examination but reiterated, in his reexamination, his testimony in his examination-in-chief. 456. The defence plea that the afore-mentioned witnesses in view of their contradictory orientations ought to be discarded as a whole did not meet the approval of the Trial Court. It recorded that not only the evidence of such witnesses does not deserve to be discredited as a whole and instead can be acted upon on the same analogy as of a hostile witness, the circumstances under which 76 prosecution witnesses were recalled by the respondents/accused after A1 had assume ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stimony. DW1 Ram Kumar, the maternal uncle of the bride in his deposition claimed to have met the entire expenses of the marriage and for that purpose, had opened an account in State Bank of India being Account No. 95071 in Gopal Puram Branch, State Bank of India and had remitted a sum of Rs. 92 lakhs which was spent on the occasion. He also proved Ex. D15, the photocopy of the pass book of the said account and stated that the deposit had been arranged through the brides' family. In cross-examination, he disclosed that the account was opened on 14.8.1995 but did not disclose the details of the expenditure therefrom. He also did not produce the counter-foils of the cheques issued in that account. His statement in cross-examination also revealed that he had not produced a copy of the passbook earlier in course of the investigation. He however affirmed that the total expenditure in the marriage did sum up to Rs. 92 lakhs only. 463. Apart from this witness, the respondents examined a host of party workers who, at the relevant time, held various positions at the district level and elsewhere. These witnesses, as the tenor of their testimony demonstrates, in essence asserted that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /- which was paid by cheque in the name of G.K. Arts by DW1 Ram Kumar. That a further cheque of Rs. 4 lakhs was also issued by DW1 towards some items of additional work, was also stated by this witness. The witness confirmed that he was the proprietor of G.K. Arts. 467. The respondents also examined DW80, B. Vasudevan who, at the relevant time, was working as Junior Engineer, PWD, Madras. The witness deposed that the investigating officer of the case on 17.4.1997 had orally instructed him to value the marriage pandal and other works. This witness identified his signature in the report Ex. P1019 but maintained that the drawings pertaining to the pandals and the stage had not been given by Vijay Shankar, Architect and that he did not know where the said panals had been put up. He stated that the measurements mentioned in the report were based on the instructions of the I.O. and that the said report had been prepared in the office without carrying out any inspection. He also disputed the measurements mentioned in the report. 468. In cross-examination, however, this witness admitted that he along with PW 181 Thangrajan were the members of the valuation team and also conceded that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... truction of the marriage pandal or towards the actual cost thereof, the entire amount of Rs. 5.21 crores, as cited by the prosecution, ought to be deducted. Qua the expenses on the other heads including food, mineral water, presentations, stitching charges, etc., it has been argued that not only the Trial Court had wrongly accepted the evidence forthcoming from the prosecution that the expenditure on Titan watches and stitching charges had been incurred by the respondents, it grossly erred in holding that on a rough estimate, an amount of Rs. 3 crores had been spent by the respondents on the event. It has been canvassed that in doing so, the Trial Court left out of consideration amongst others, the evidence adduced by the defence through DW1 Ram Kumar, the maternal uncle of the bride, the party workers and most importantly the income tax proceedings, which after thorough enquiries and scrutiny at different levels did finally record that only an amount of Rs. 29,66,552/-, as mentioned by A1 in her reply dated 19.09.2005, had been spent and that too by cheques except for a sum of Rs. 3 lakhs. In all, having regard to the entire gamut of the evidence, it has been argued that consideri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to how much money was spent for the marriage. The High Court touched upon the evidence of other witnesses and in particular elaborated on the testimony of PW228 R. Rajshekheran from whom the file containing the original vouchers, bills, invoices in connection with the marriage i.e. Ex. P2218 had been seized. It also analyzed the queries made by the Income Tax Department and the reply given thereto by A1 by her letter dated 19.09.1995 wherein, she provided the breakup of the expenditure incurred by her. The testimony of DW1 Ram Kumar, the maternal uncle of the bride, more specifically to the effect that the entire expenses had been borne by the bride's family to the tune of Rs. 92 lakhs by remittances through the bank account opened on 14.08.1995 was taken note of. The evidence of the party workers claiming their contribution in the expenditure through collection was also recorded and eventually the High Court accepted the statement of A1 furnished to the Income Tax Department disclosing the expenditure by her of Rs. 28,67,520/- towards marriage and rounded up the said figure to Rs. 28,68,000/- to be her share of expenses. 472. In reaching this conclusion, apart from rejecting the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respondents, apart from these infirmities, the Trial Court also ignored, amongst others, the aspect that on several items of expenditure by way of payment of interest, these respondents had been subjected to double jeopardy inasmuch as though these sums had been accounted for in computing their net profits, these amounts were shown separately again as expenditures. Not only sums not expended in fact had been deliberately shown to be so, the attempt on the part of the prosecution to make double and inflated additions in respect of purchase of machineries in some items has been overlooked. It has been argued as well that the Trial Court erroneously also relied on the evidence of prevaricating prosecution witnesses against the respondents. 474. Per contra, the prosecution has insisted that the challenge to the so called flaws in the assessment of the evidence by Trial Court on items other than the one pertaining to marriage expenditure is wholly misplaced and unmerited as the High Court had also endorsed the amounts corresponding thereto. This is more so in absence of any challenge to the conclusions of the High court in this regard by the respondents. According to the prosecution, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and stated on oath that the Architect Vijay Shankar had given him the drawing of the choultry and the measurements of the pandals on the basis of which those had been constructed. He also referred to the plans and sketches provided to him by the Art Director, based whereupon, the fixtures and ancillary structures were raised. In the report Ex.P1019 prepared by PW181, he did mention, inter alia, the areas of the various pandals together with the decorative attachments and after accounting for the cost thereof and the price of the furniture used and the amenities provided, estimated the expenditure to be Rs. 5,91,00,000/- towards the pandals and other arrangements to secure the intended facilities for the couple, guests and other participants. True it is, that PW181 was not an eye-witness to the marriage arrangements and had not personally undertaken the works pertaining to the pandals and other associated arrangements, yet as has been observed by the Trial Court, his findings as recorded in the report Ex. P1019 could be construed to be of an expert witness and further could be used as corroboration for the testimony of PW200 who indeed had supervised the same works himself and as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st of Titan watches as the evidence to that effect was construed to be inadequate to lay the same in the account of the respondents. The rejection of the evidence of the party workers claiming collection of various amounts from its cadres and utilization thereof towards the purposes and arrangements mentioned by them also in absence of any persuasive corroborative evidence does not merit any repudiation. In the face of the evidence in particular of the elaborate arrangements at the venues and the expenses incurred on other items associated with the event, we are of the opinion that the Trial Court did not err in not accepting the figure of Rs. 28,68,000/-, as the expenditure incurred by A1 on the basis of her reply to the queries made by the Income Tax Department. Though it has been urged on behalf of the defence that this figure had been finally accepted after the necessary enquiries undertaken by the income tax authorities, the result of such enquiries even if made, being not binding on the Trial Court, it was not obliged to accept the same by ignoring the evidence adduced before it. The treatment of the evidence by the High Court, on the other hand, in our assessment, had been s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onal visitor to the residence of A1 till 1988 whereafter she was permanently assimilated in the household. The prosecution case as well is that A3 who is proclaimed to be the foster son of A1 is the biological son of A2's elder sister Tmt. Vanamani and T. Vivekanandan. He too had come to reside in the residence of A1 during the year 1992 while pursuing studies at Chennai and remained there till 1997. It is in evidence that A1 had solemnized his marriage on 7.9.1995, claiming him to be her foster son with noticeable pamp and grandeur. A4, according to the prosecution, is the wife of the elder brother of A2 and had been residing in the house of A1 from the beginning of 1992. 482. The above noticeable integration of A1 to A4 and their joint residence has been highlighted by the prosecution as a formindable indicator to attest the imputation of conspiracy and abetment. Apart from maintaining that A2, A3 and A4 at the time of joining the household of A1 were not possessed of properties significant enough in their names nor did have any independent source of income as such, it has insisted that the properties acquired during the check period in the names of the 34 firms and companie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nveyances were made through attorneys foisted upon them. The vendors were also subjected to duress to part with the property and the officials entrusted with the duty of registration of such transactions, were subjected to instructions from higher authorities to oblige the purchasers and that the registrations did take place at the residence of A1 on many occasions. The consideration price of such sale transactions very often had been below the guidelines prescribed and the amounts were paid from various accounts of the respondents as well as their firms/companies and also by cash. According to the prosecution, all these circumstances are borne out unmistakably by the evidence on record, oral and documentary do prove the charge of conspiracy and abetment and that in furtherance of these criminal activities, each one of them had acted on behalf of each other in capacities either as individuals, partners, directors, of their firms/companies and also collaborators. 483. In refutation on behalf of A1, it has been broadly urged that though conspiracy can be inferred from circumstances, the same has to be essentially proved and that the mere fact that A2 to A4 had been residing in the h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been urged with reference to the testimony of DW86 Vaidyanathan and DW87 Srikant as well as the income tax returns for the period ending 31.3.1996 and 1996-97 as well as the balance sheets of the companies that so far as Meadow Agro Farm Pvt. Limited, and Riverway Agro Products Limited are concerned, at the relevant time, the respondents were not the shareholders thereof and their share capital was formed of the contribution of the shareholders of these entities. According to the respondents, all these companies had sufficient funds of their own where from acquisition of properties and expenditures were made. That huge amount of loans were also advanced by these companies, to name in particular, Meadow Agro Farms Pvt. Limited, Riverway Agro Products Limited and Lex Property Development (Pvt.) Limited have been highlighted. The loans, noticeable were more prominently to A2, A3 and the firms/companies formed by them in different combinations including Sasi Enterprises and Jaya Publications. The amount of loans range from Rs. 2 lakhs to Rs. 62,52,000/-. Vis-a-vis Lex Property Development (Pvt.) Limited, it has been contended that from its balance sheet for the assessment year 1996 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 at Rs. 6 per share and the remaining 600 shares had been purchased by six other persons. That the price of the 9,69,400 shares @ Rs. 6 per share amounting to Rs. 58,16,400/- and registered in the name of A2 had been paid by A3 is however admitted. Contending thus that the prosecution version that Indo Doha Chemicals and Pharmaceutical Pvt. Limited during the check period had a total income of Rs. 30,40,000 to be wrong, it has been urged that after the purchase of the shares, the whole factory was leased out to Southern Petrochemical Company Limited (SPIC), in return whereof the company received an amount of Rs. 1,39,08,584/-. It has however been admitted that out of such receipt, Rs. 25,00,000/- had been lent to Meadow Agro Farm (Private) Limited. Further, an amount of Rs. 20,00,000/- had been paid to James Frederic and Rs. 72,00,000/- to SIPCOT by way of repayment of loan availed earlier leaving a balance of Rs. 57,08,584/- in deposit. This is to contradict the prosecution's claim that the income of Indo Doha Chemicals and Pharmaceutical Private Limited during the check period was Rs. 30,40,000/-. It has thus been urged that all the properties acquired and constructions rais ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filing her income tax returns in connection therewith. Reference of the income tax returns and wealth tax returns of A2 for the assessment years 1985- 86 to 1992-93 have been referred to. All these returns as the dates thereof would indicate had been submitted much belatedly and noticeably on same dates i.e. 23.2.1993 and 25.2.1993 for income tax and wealth tax returns respectively. No explanation for such delayed submission of returns had been furnished. 490. Though A2 had been a partner in Jaya Publications and Sasi Enterprises which did exist as well from before the check period, it has been pleaded that the Trial Court completely disregarded the evidence with regard to her income and assets of these firms as disclosed more particularly in the income tax returns and accepted by the income tax authorities, in holding that the transactions involved were really of A1 catalysed by her finances. Similarly the income tax returns of A3, A4 and the six companies had also been left out of consideration by the Trial Court. 491. Reiterating that there is no evidence on record even to indicate that A1 had been the director or a shareholder of any of the six companies, it has been emphasiz ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of attorney was executed by A 1 in favour of A2 only for the purpose of bank transactions of Indian Bank and not for all purposes as assumed by the Trial Court. Further, as A1 was neither a partner in any of the firms/companies constituted during the check period and as the six companies, the properties whereof had been confiscated, had been incorporated prior to the check period with third party promoters/directors, this factor also did not merit acceptance to reinforce the charge of conspiracy. 493. It has been assiduously pleaded that having regard to the fact that A1 is a spinster and that she and A2 were partners in M/s Jaya Publications and M/s Sasi Enterprises from before the check period and thus did share a close relationship, A2's accommodation with A1 per se cannot suggest conspiracy as alleged. Similarly, A3 being the nephew of A2 and A4, the widowed sister-in-law of A2, their residence with A1 also ipso facto was not an unmistakable circumstance to deduce conspiracy, in absence of any evidence direct or indirect or a single instance evidencing flow of cash or finance either from any source of A1 or her account to that of the other accused persons or the six compa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cuniary resources and the properties of A2 to A4 as well as the six afore-named companies were really held for and on behalf of A1, thus attracting the offence under Section 13(1)(e) of the Act. The Trial Court recounted in this context, the plea of A2 to A4 that the cash deposits in their accounts and their assets had been acquired out of their own funds and that A1 had no association therewith or contribution therefor in any manner whatsoever. This, is in the face of the accusation of the prosecution that the financial resources as well as the assets of A2 to A4 and the six companies were in fact those of A1, as A2 to A4 and the said companies did not have, at all relevant times, any income, or wherewithal to acquire the same. The Trial Court was thus alive to the assertion of the prosecution that the pecuniary resources and the properties of A2 to A4 and of the six companies as endeavoured to have been acquired from their funds were held in benami for and on behalf of A1. It proceeded to analyse the evidence adduced by the prosecution on the touchstone of the accepted legal formulation that benami transactions admitted of direct or circumstantial evidence leading to such inferen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the testimony of the witnesses examined as well as the documents on the aspect of acquisition of properties by these six companies. The witnesses included erstwhile directors of these companies, bank officials who stated about the opening of their accounts as well as advancement of loans, the concerned sub-registrars, who registered the sale deeds of lands purchased by these companies, officials from the office of the Company Registrar and Mr. Shiva, Real Estate Agent, who acted as the agent/attorney of the vendors, whose lands were purchased by these companies. The materials examined by the Trial Court evidenced heavy deposits/withdrawals of cash and transfers thereof hitherto absent before A3, A4 had taken over the companies. The amounts varied very often in the range of Rs. 10 lakhs and above. The pay-in-slips for the deposits amongst others showed address of 36 Poes Garden, Chennai. Transfers of heavy amounts to and from other accounts of A2 to A4 and their firms also surfaced. The income-tax returns/balance sheets belatedly filed also demonstrated exchanges of deposits inter se the accounts of A2 to A4 and their firms as well as these companies. 499. In respect of the acquisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urt noted as well that A2 to A4 had taken over the management of the companies even without buying the requisite shares and concluded that these entities in fact did not have the trappings of a company. It was determined as well that none of these companies had any account in their names before A3 and A4 had taken over the charge thereof and that there was no evidence to demonstrate that the funds of these companies had been utilised to purchase properties in their names. It recorded as well, that the funds were transferred to the accounts of these companies either from the accounts held in the names of Namadhu MGR, M/s Jaya Publications or other firms of the respondents which unassailably proved that the resources for the acquisition of the properties of these companies had in fact been availed from A1 or the accounts maintained in the joint accounts of A1 and A2. That admittedly none of the companies had filed returns either before the Registrar of the Companies or before the income tax authorities declaring the funds for the purchase of properties or acquisitions made in the names of the companies was noted. The Trial Court also recorded the non-compliance of the various provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... corporated under the Companies Act cannot hold property benami for another person, it entered a finding that none of the documents of title registered in the names of the companies did bear the seal thereof. That in 90% of the registered deeds, the companies were not represented by their secretary or director and that the address of the companies were not recorded in such deeds, was noted. The Trial Court concluded that the registrar who registered these properties and PW 181 who negotiated with the purchasers, distorted the rules to help A1 and they went out of his way to oblige her. That in some of the deeds, the names of the purchasers were not included and that the properties were undervalued was reiterated. The admission of the District Registrar that he proceeded with the registration solely because the properties were purchased by A1 was taken cognizance of. It was thus of the view that the intention of the respondents in taking over the companies was for acquiring large number of properties in their names for diverting the funds unlawfully amassed by A1 during her tenure as Chief Minister of the State. It thus concluded that the properties registered in the names of these c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 21 C.A.No.1143 Indian Bank Ramraj Agro Mills 23.12.1994 22 S.B.No.3832 Canara Bank Mylapore Branch Ms. Jayalalitha Accused No.1 16.04.1991 23 C.A.No.2018 Canara Bank Mylapore Branch Ms. Jayalalitha Accused No.1 12.10.1990 24 S.B.No.2321 8 Canara Bank Mylapore Branch Accused No.2 23.09.1990 25 S.B.No.5158 Bank of Madhura, Anna Nagar Branch, Chennai Accused No.1 (Ms. Jayalalitha) 28.02.1990 26 C.A.A/c 1689 Canara Bank, Annanagar Branch Mahasubbu Lakshmi Kalyan Mantap (Accused No.3, A4 and Shrilatha Devi) 27.08.1993 27 C.A.No.1173 Indian Bank, Abhirampur am Branch, Chennai Smt. V. Gunabooshani 05.05.1995 28 C.A.No.1179 -do- Jaya Finance Pvt. Ltd. 29 C.A.No.1171 -do- Accused No.4 (Elavarasi) 28.03.1995 30 C.A.No.1068 -do- Accused No.3 30.03.1994 31 C.A.No.1071 -do- Fresh Mushrooms (A.2) 11.03.1994 32 C.A.No.1059 -do- J.J. Leasing and Maintenance 27.01.1994 33 S.B.No.4110 -do- J. Vivek 12.09.1994 34 C.A.No.1050 -do- J. Real Estate 27.01.1994 35 C.A.No.1062 -do- J.S. Housing Developments 27.01.1994 36 C.A.No.1058 -do- Green Farm House 37 C.A.No.1054 -do- J. Farm House 38 C.A.No.1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he names of the firms/individuals to be mentioned in the sale deeds and in whose names the sales were to be registered. The amounts had been paid from amongst various accounts of the accused/firms/companies. In many cases, the sale transactions had taken place below the guideline value as has been deposed by PW159 and PW 221. 506. The testimony of PW 15, PW 40, PW43, PW 56, PW 76, PW 89, PW 160, PW 77 and PW237 is amongst others to the effect that the vendors were kept unaware of the purchasers' identity and in some cases were also put under duress to agree to the transactions. Their statements also divulge that not only was A1 aware of these transactions but on several occasions, the registrations thereof were performed at her residence. 507. Dealing with the plea that the companies incorporated under the Companies Act cannot hold properties in benami for another, the Trial Court recorded that a company is a legal entity with perpetual succession and a common seal and has to essentially act through its agents and all contracts entered into by them must be under the seal thereof. It observed that in the case in hand there was hardly any document of title registered in the name of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 120B IPC. It thus held that the properties registered in the names of these six companies and which were the subject matter of GOMS No. 1183 dated 25.9.1997 and GOMS No. 120 dated 12.1.1997 were in reality acquired and held by A2 to A4 for and on behalf of A1. In reaching this conclusion, the Trial Court also did allude to the above-referred decision of this Court that property held in the name of an income tax assessee per se did not signify that it actually belonged to the assessee and that there was no embargo in getting the same registered in the name of one person though the real beneficiary was another. 508. In re the charge of abetment and conspiracy in general, the Trial Court, while dealing with the defence plea that a non public servant could not be prosecuted for the offence under Section 109 IPC in a trial constituted under the Act, relied on the decision of this Court in P. Nallammal (supra) to the effect that the acquisition and possession of any property by a public servant is capable of being abetted and that there is neither an express nor implied exclusion of the 1988 Act to deal with such a situation. The Trial Court noted that under Section 3 of the 1988 Act, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to his income and the expenditure made, the Trial Court reverted to the evidence of PW 201, the officer of the Canara Bank, Mylapore who, inter alia, had disclosed that in the application filed by this respondent for opening of his saving bank account No. 24621, he had given his address as No. 36, Poes Garden, Chennai-86. This witness testified by adverting to the ledger for this account which on 30.4.1996, showed a balance of Rs. 61,430/- . Prior thereto, on 17.7.1992, A3 had remitted cash through signed pay-in-slip for an amount of Rs. 5 lakh to this account. He clarified further that in this saving bank account, many receipts were made through clearance. He referred to a withdrawal of Rs. 5 lakh by this respondent on 7.12.1992 from this account, who deposited the sum in a fixed deposit account No. 1401/1992 which on maturity was credited to his current account No. 2220. This witness disclosed further that the application submitted by A3 to open this current account carried an introduction by A2 and the address here as well was mentioned as 36, Poes Garden, Chennai. Though this account was opened on 7.4.1993 by remitting an amount of Rs. 501 by A3, on 24.9.1994, a sum of Rs. 4,10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce as considered by it disclosed that the business activities in the names of A2, A3 and A4 started only during the check period and that they did not invest any funds on their own for that purpose and in fact utilised these as a front to enable A1 and A2 to transfer huge unaccounted money through the bank accounts thereof. 512. The Trial Court noted that at the commencement of the check period, there were hardly 10 to 12 bank accounts standing in the names of A1 and A2 but thereafter 50 accounts mushroomed during the check period as deposed by PWs 182, 201, 207,209 and 239. The particulars of the bank accounts, the names of the banks, the dates of opening thereof, and the corresponding exhibits along with the names of the account holders were marked in details. 513. Referring to the evidence of PW-201 in particular, the remittances inter se the accounts of A1 to A4 and their firms also were set out which would demonstrate that the exchanges during the check period were not only noticeably frequent and numerous but also did sum up to figures fluctuating from Rs. 12000/- to Rs. 25,00,000/- as would be evident from the particulars of such transfers involving the accounts of A1, A2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the respondents to seek the trail of the fund flow and thus examined the deposits of cash into their bank accounts and also in those of the firms/companies floated by them spanning from Rs. 10,000/- to Rs. 33,70,000/. On an audit of the current and saving bank accounts of the respondents and the firms involved, the Trial Court identified unexplained cash credits of huge sums therein varying from Rs. 2684.90 to Rs. 1,26,00,000/- involving the respondents, Namadhu MGR, Sasi Enterprises, Vinod Video Vision, Jaya Publications, J. Farm House, Maha Subalaxmi Kalayana Mandapam, Anjaneya Printers Private Limited, Fresh Mushroom, Metal King, Super Duper T.V. Private Limited, Lex Property Development Pvt.Ltd., Riverway Agro Production Private Limited, Fax Universal, Meadow Agro Farm Pvt. Limited, Namay Shivaya Housing Development, Vigneshwara Builders, Laxmi Constructions, Sea Enclave, Ayyappa Property Development Private Limited, Ocean Construction, Gopal Promoters, Green Garden Apartments, Shakti Constructions, J. S. Housing Development, Ramraj Agro Mills Private Limited. Noticeably except Jaya Publications and Sasi Enterprises, A2 to A4 and Lex Property Development Private Limited were t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no independent or real source of income and that it was the finance of A1 that was really in circulation and thus it could prove beyond reasonable doubt that the only source of money the acquisition of large assets was that of hers. 519. The evidence of PW198 M. Jayaraman, a member of staff with A1 in her house at Poes Garden, at the relevant point of time, admitting remittances into various bank accounts through Mr. Vijayan on the instructions of A2 was referred to in particular. That this witness had stated that A2 used to instruct him about the details of the bank to which the deposit ought to be credited and that the amounts used to be dispatched in suit cases and bags through domestic servants was taken note of. The Trial Court took into consideration his testimony that he used to fill the challans as directed by A2 which he identified in the course of his examination. He identified too, the signatures of Mr. Vijayan on the challans. The Trial Court also took note of the evidence of PW 182 and PW 201, the bank officers who identified/proved large numbers of pay-in-slips and also affirmed that those bore the name of Mr. Vijayan as the person remitting the amounts mentioned. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... osecution could prove beyond reasonable doubt, the charges levelled against the respondents as framed. While enumerating finally the facets substantiating this determination, the Trial Court took note of the fact that A1 had executed a general power of attorney (Ex. P-995) in favour of A2 in respect of Jaya Publications as A1, at all relevant time, was the partner of the said firm. That such a power of attorney was otherwise not necessary and that this authority was thus endowed on A2 so as to lend her a free hand in the management of Jaya Publications so as to facilitate the defence of A1 that she used to be a dormant partner and was unaware of the transactions carried on by A2 was recorded. The Trial Court however held the view that by the execution of such power of attorney, in law, A1 rendered herself liable for all acts and deeds of A2 pursuant to the powers so conferred. It correlated the flow of funds accumulated by A1 to the account of Jaya Publications and thereafter to branch out the same to other accounts to be eventually appropriated for the acquisition of huge assets. The Trial Court thus rejected the stand of A1 that she was unaware of the activities of A2, her agent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gendered by any philanthropic urge for friends and their relations in need, rather to frame and further the criminal conspiracy to hold the assets of A1. The fact that the materials on record did evince that A1 had not only advanced Rs. 1 crore to Shasi Enterprises as a contribution to its share capital for which she availed loan, but also that she did issue several cheques in favour of other accused persons and filed application for availing loan for the benefit of the firms involved, did buttress the charge that she was wholly aware of the dealings of the co-accused and the firms in their minutest details. The free flow of money from one account to the other of the respondents, the firms/companies also proved beyond reasonable doubt that all the accused persons had actively participated in the conspiracy to launder the ill-gotten wealth of A1 for purchasing properties in their names. The fact that the assets and properties of the six companies were attached pursuant to the provisions of the Criminal Law Amendment Ordinance and that the applications for vacating the attachments were not filed for more than two years therefrom did make it apparent that no other person except the ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... meet the deficit. The rest of the gold and diamond jewellery was directed to be confiscated to the Government. 525. It further ordered that all immovable properties registered in the names of Lex Property Developments Pvt. Ltd., Meadow Agro Firms Pvt. Ltd., Rama Raj Agro Mills (P) Ltd., Signora Business Enterprises Pvt. Ltd., Riverway Agro Production (P) Ltd. and Indo Doha Chemicals and Pharmaceutical Ltd. which were under attachment pursuant to GO Nos. MS 120 and 1183, above referred to be confiscated to the State Government. It ordered as well that out of the fine amount recovered, a sum of Rs. 5 crores be made over to the State of Karnataka towards reimbursement of expenses for the trial conducted thereat. 526. As many as 34 companies/firms fell for scrutiny in the course of adjudication. Out of these Jaya Publications, Sasi Enterprises, Signora Business Enterprises Private Limited, Lex Property Development Pvt. Limited, Riverway Agro Production Private Limited, Meadow Agro Firm Pvt. Limited, Indo Doha Chemical and Pharmaceutical Limited, Ram Raj Agro Mills Limited did exist from before the check period. The others were registered during the check period and notably, the date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as 99 witnesses. Prior thereto, 76 prosecution witnesses were permitted to be recalled for further cross-examination. The remonstrance that the Trial Court did not take into consideration the defence evidence is also not borne out by the records. As would be evident from its judgment, the testimony of several witnesses examined by the respondents received indepth appreciation by the Trial Court wherever relevant. The contention that the Trial Court had conducted the trial in a manner prejudicial to the respondents in the overall context, both factual and legal, thus cannot be sustained. 529. That the Trial Court was meticulous, sensitive, vigilant and judicious in appraisal, stands authenticated by the fact that in valuing the assets, as warranted, it excluded a sum of Rs. 32 lakhs towards the price of sarees and further reduced the value of gold and diamond to the extent of Rs. 2 crores. It also allowed reduction in the marriage expenses by more than 50% and further discounted the value of constructions by permitting a depreciation of 20%. 530. Apropos the off repeated grievance, of the defence that the Trial Court had left out of consideration material pieces of evidence adduce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Schedule, those are not being dwelt upon. 532. Clause 3 of the Ordinance provides that where the State Government or as the case may be, the Central Government has reason to believe that any person has committed, whether after the commencement of the Ordinance or not, any scheduled offence and whether or not any court has taken cognizance thereof, it may authorise the making of an application to the District Judge within the local limits of whose jurisdiction, the said person ordinarily resides or carries on business, for attachment of any money or other property, believed to have been procured by means of such offence. It also permits that if such money or property cannot for any reason be attached, the prayer in the application may be extended to other property of the said person of the value as nearly as may be equivalent thereto. The provisions did make applicable Order XXVII of the First Schedule to the Code of Civil Procedure, 1908 to the proceedings for an order of attachment under the Ordinance as they did apply to the suits by the Government. 533. Section 4 contemplates ad interim attachment by the jurisdictional District Judge, in the eventualities as mentioned therein ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eited in connection with any scheduled offence other than one specified in item 1 of the schedule, would after deduction of the cost of attachment as determined by the District Judge, be credited to the Government or the local authority to which the offence has caused loss or where there is more than one such government or local authority, to be distributed amongst them in the proportion to the loss sustained by each. 534. Noticeably "termination of criminal proceedings", as per clause 2(2), as relevant for our present purpose, would be where this Court would pass its final order in the present appeals. 535. In the appeals, filed by the State of Karnataka pertaining to the release of the properties recorded in the name of the six companies involved, consequent upon the acquittal of the respondents, the parties are essentially at issue on the applicability or otherwise of Section 452 of the Code of Criminal Procedure, 1973 invoked by the Trial Court to order confiscation/forfeiture of the properties otherwise attached under the Ordinance. The other facets of the competing assertions being largely common and already addressed, are inessential for a fresh scrutiny. Whereas it is ur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt towards confiscation/forfeiture of the attached property, as mentioned therein, is hereby restored and would be construed to be an order by this court as well. The decisions cited on behalf of the respondents on this issue, are distinguishable on facts and are of no avail to them. 537. In Mirza Iqbal Hussain through Askari Begum Vs. State of Uttar Pradesh, (1982) 3 SCC 516, two fixed deposit receipts and the cash amount of Rs. 5200/- seized from the house of the appellant and proved to be the subject-matter of charge under Section 5(1)(e) of the 1947 ACt, were ordered to be confiscated to the State. Responding to the plea of want of jurisdiction of the Special Court to order confiscation, this Court referring to Section 4(2) of Cr.P.C., held that in terms thereof, all offences under any law other than the Indian Penal Code have to be investigated, inquired into, tried and otherwise dealt with according to the provisions contained in the Code but subject to any enactment for the time being in force regulating the manner or place of investigation, enquiry, trial or otherwise dealing with such offences. It was observed that none of the provisions of the Prevention of Corruption Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. We have noticed that: In State Through Central Bureau of Investigation, New Delhi Vs. Jitender Kumar Singh, reported in (2014) 11 SCC 724, this Court held that once the power has been exercised by the Special Judge under sub-section (3) of Section 4 of the P.C. Act to proceed against non-PC offences alongwith PC offences, the mere fact that the sole public servant dies after the exercise of powers under sub-section (3) of Section 4, will not divest the jurisdiction of the Special Judge or vitiate the proceedings pending before him. Therefore, we hold that as the sole public servant has died being A1 in this matter, in our opinion, though the appeals against her have abated, even then A2 to A4 are liable to be convicted and sentenced in the manner as has been held by the Trial Judge. The Trial Court held that even private individuals could be prosecuted for the offence under Section 109 of I.P.C. and we find that the Trial Court was right in coming to the conclusion relying on the decision of Nallammal (supra), wherein it was observed that acquisition and possession by a public servant was capable of being abetted, and observed that Under Section 3 of the 1988 Act, the Special ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facts and circumstances proved in evidence undoubtedly point out that A2 to A4 were accommodated in the house of A1 pursuant to the criminal conspiracy hatched by them to hold the assets of A1. (v) Ex.D.61 reveals that before the Income Tax Authorities, the representative of A1 himself had put forth an argument that Rs. 1 crore was advanced by A1 to Sasi Enterprises towards share capital and further it was submitted that on the security of the said amount, loan was borrowed by A1, and thus she cannot claim noninvolvement with the firms. (vi) The flow of money from one account to the other proves that there existed active conspiracy to launder the illgotten wealth of A1 for purchasing properties in the names of the firms. (vii) The conspiracy among the accused persons is also proved by the evidence of Sub-Registrar, North Beach, Sub-Registrar office-PW.159 and the evidence of PW.71 Radha Krishnan, Horticultural officer. In our opinion, the Trial Court correctly came to the conclusion on such reasoning and we hereby uphold the same. 542. Accordingly, in view of the reasoning recorded hereinabove in the preceding paragraphs, we set aside the judgment and order of the High Court ..... X X X X Extracts X X X X X X X X Extracts X X X X
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