TMI Blog2017 (2) TMI 926X X X X Extracts X X X X X X X X Extracts X X X X ..... isation of the special Judge trying the offences thereunder to exercise all the powers and functions invocable by a District Judge under the Ordinance, we are of the opinion that the order of confiscation/forfeiture of the properties standing in the name of six companies, as involved, made by the Trial Court is unexceptionable. In any view of the matter, with the peremptory termination of the criminal proceedings resultant on this pronouncement, the direction of the Trial Court 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 After analyzing the facts and circumstances of this case and after taking into consideration all the evidence placed before us and the arguments put forward by all the parties, we are of the unhesitant opinion that the impugned judgment and order rendered by the High Court is untenable and is thus set aside. We have considered the facts of this case and in our opinion, the percentage of disproportionate assets as 8.12% as computed by the High Court is based on completely wrong reading of the evidence on record compounded by incorrect arithmetical ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... self secured from legal complications, A1 executed the said power of attorney knowing fully well that under the said powers, A2 would be dealing with her funds credited to her account in Jaya Publications. (ii) Constitution of various firms during the check period is another circumstance establishing the conspiracy between the parties. It has come in evidence that 10 firms were constituted on a single day. In addition, A2 and A3 started independent concerns and apart from buying properties, no other business activity was undertaken by them. The circumstances proved in evidence undoubtedly establish that these firms are nothing but extentions of Namadhu MGR and Jaya Publications and they owed their existence to the benevolence of A1 and A2 (iii) The aforesaid firms and companies were operating from the residence of A1 and it cannot be accepted that she was unaware of the same even though she feigned ignorance about the activities carried on by A2 to A4. They were residing with A1 without any blood relation between them. (iv) Although A2 to A4 claims to have independent sources of income but the fact of constitution of firms and acquisition of large tracts of land out of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... MINAL APPEAL NOS. 300-303 OF 2017, CRIMINAL APPEAL NOS. 304-307 OF 2017, CRIMINAL APPEAL NOS.308-313 OF 2017, CRIMINAL APPEAL NOS.314-319 OF 2017 - - - Dated:- 14-2-2017 - Pinaki Chandra Ghose and Amitava Roy, JJ. For The Petitioner : Mr. B.V. Acharya, Sr. Adv., Mr. Dushyant A. Dave, Sr. Adv., Mr. Sidharth Luthra, Sr. Adv., Mr. B.L. Acharya, Adv., Mr. Sandesh Chouta, Adv., Mrs. Priya Aristotle, Adv., Ms. Priyanka Gladson, Adv., Mr. Joseph Aristotle S., AOR, Mrs. Priya Aristotle, Adv., Mr. M.B. Elakkumanan, Adv., Ms. K. Priyadarshini, Adv., Mr. Ashish Yadav, Adv., Mr. Nitin Saluja, Adv., Ms. Vishurti Vijay, Adv., Ms. Anitha Shenoy, AOR, Mr. R. Shunmuga Sundaram, Sr. Adv., Mr. V. G. Pragasam, AOR, Mr. Prabu Ramasubramanian, Adv. For The Respondent : Mr. Shekhar Naphade, Sr. Adv., Mr. B. Kumar, Sr. Adv., Mr. C. Manishankar, Sr. Adv., Mr. A. Asokan, Adv., Mr. S. Senthil, Adv., 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. Gopalakrish ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chennai-86; (ii) House at Plot No.36, Door No.8/3/1099 in Sri Nagar Officer s Colony at Hyderabad City; (iii) Lands totally measuring 10.20 acres in Sy.No.52 and Sy.No.50 of Jeedimetla village and Sy. No.93/1 of Pet Basheerabad Village in Metchal Taluk in Ranga Reddy Dist. of Andhra Pradesh with Grape Garden, Farm House and Servants quarters; (iv) Land in Sy.No.93/2 to the extent of 3.15 acres in Pet Basheerabad village in Andhra Pradesh; In addition to the above properties, A1 was also in possession of (v) Agricultural land measuring 3.43 acres in Cheyyur Taluk now in Anna Dist. (as per Doc. No.4564/81, dt.16.12.1981 of SRO North Madras); (vi) An old Ambassador car and an old Contessa car; (vii) A new Maruti car bearing registration No.TMA-2466 worth ₹ 60,435/- and (viii) Company shares. Thus, the assets which were in the possession of A1 up to 1987 were found to be worth only ₹ 7.5 lakhs. Besides, she also claimed to have possessed balance in her bank accounts to the extent of ₹ 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vii. M/s. Metal King; viii. M/s. Super Duper TV (P) Ltd., ix. M/s. Anjaneya Printers Pvt. Ltd., x. M/s. Ramraj Agro Mills Ltd., xi. M/s. Signora Business Enterprises Pvt., Ltd., xii. M/s. Lex Property Development Pvt., Ltd., xiii. M/s. Riverway Agro Products Pvt., Ltd., xiv. M/s. Meadow Agro Farms Pvt., Ltd., xv. M/s. Indo Doha Chemicals Pharmaceuticals Ltd., xvi. M/s. A.P. Advertising Services; xvii. M/s. Vigneswara Builders; xviii. M/s. Lakshmi Constructions; xix. M/s. Gopal Promoters; xx. M/s. Sakthi Constructions; xxi. M/s. Namasivaya Housing Development; xxii. M/s. Ayyappa Property Developments; xxiii.M/s. Sea Enclave; xxiv. M/s. Navasakthi Contractors and Builders; xxv. M/s. Oceanic Constructions; xxvi. M/s. Green Garden Apartments; xxvii. M/s. Marble Marvels; xxviii. Vinod Video Vision; xxix. Fax Universal; xxx. Fresh Mushrooms; xxxi. M/s. Super Duper TV., and xxxii. M/s. Kodanadu Tea Estate; 9. The further case of the prosecution is 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l of ₹ 9,34,26,054/-, whereas during this period the expenditure incurred by A1 including repayment of principal amounts and interest on loan, and other outgoings were assessed at ₹ 11,56,56,833/-. Thus, as on 30.4.1996, A1 being a public servant was found to have acquired and possessed pecuniary resources and properties in her name and in the names of A2, A3 and A4 and the firms floated by them, which were overwhelmingly disproportionate to her known sources of income to the extent of ₹ 66,65,20,395/- (Rupees Sixty Six Crores Sixty Five Lakhs Twenty Thousand Three hundred and Ninety Five only) which is an offence of criminal misconduct within the definition of Sec.13(1)(e) punishable under Section 13(2) of 1988 Act and A2, A3, and A4 conspired with A1 and abetted the commission of the above offence. 11. On 14.6.1996, Dr. Subramanian Swamy (PW-232), the then President of Janata Dal lodged a complaint against A1 before the Principal Sessions/Special Judge, Madras, under Section 200 of Cr.P.C., alleging that A1, after assuming the public office as Chief Minister of Tamil Nadu, had acquired properties and earned income disproportionate to her known sources of in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to A4 and the thirty two (32) business enterprises floated in the names of A2 to A4, for which you (A1) could not satisfactorily account and you (A2 to A4) abetted A1 by holding a substantial portion of the pecuniary resources and property in your names (A2 to A4) on behalf of you and thereby you A1 to A4 committed an offence punishable u/Sec.s 120-B 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. Secondly:- That you A1 in pursuance of the said criminal conspiracy, during the said period and the said places, being a public servant to wit the Chief Minister of the State of Tamil Nadu, acquired and possessed in your name and in the names of A2 to A4 and in the names of the business enterprises floated in the names of A2 to A4, pecuniary resources and property disproportionate to your known sources of income to the extent of ₹ 66,65,20,395/- for which you could not satisfactorily account, and thereby you A1 committed an offence punishable u/Sec. 13(2) r/w 13(1)(e) of Prevention of Corruption Act, 1988 and within the cognizance of this Court. Thirdly:- That you A2 to A4 in pursuance of the said criminal cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 36th Addl. City Civil Sessions Judge at Bangalore. Subsequent thereto certain steps were taken on behalf of the accused and the matter travelled up to this Court/Supreme Court whereafter the trial was resumed before the Special Judge. The accused were called upon to examine their witnesses and subsequently 99 witnesses were produced before the Court and concluded their evidence. Narration of all eventful factual interventions has been avoided being not decisively essential for the adjudication. 18. It appears that the Trial Court after hearing the parties culled out the following points for determination: (a) Whether the prosecution proves beyond all reasonable doubt that A1, being a public servant acquired and possessed in her name and in the names of A2 to A4 and in the names of business enterprises floated in their names, pecuniary resources and assets of the value of ₹ 66,65,20,395/- disproportionate to her known source of income during the check period from 01.07.1991 and 30.04.1996, which she could not satisfactorily account? (b) Whether the prosecution further proves beyond reasonable doubt that A1 to 4 were parties to a criminal conspiracy with the ob ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M/s Natya Kala Nikethan, rep. by Smt. N.R. Sandhya and Selvi J.Jayalalitha 1,32,009.00 2. Door No. 8/3/1099, Ward No. 8, Block No. 3 in plot No. 36 to the extent of 651.18 Sq. Mtrs. building in Sri Nagar Officers Colony, Hyderabad city purchased from Koka Sambasiva Rao, S/o Hariprakash Rao at Door No. 8/3/1099 in Sri Nagar Officers Colony, Hyderabad city ,, 50,000.00 3. Two Farm houses, Servant quarters and other buildings within the Grape garden compound in Jeedimetla village and Pet Basheerbad in Qut Bullapur (Mandal) of Ranga Reddy Dist., in Sy. No. 50 and 52/E of Jeedimetla village and Sy. No. 93E and 93 U of Pet Basheerbad village (Total extent 11.35 acres) ,, 1,65,058.50 4. Land in Sy. No. 93/3 to the extent of 3.15 acres(1.36 Hectares) at Pet Basheerbad village in Medchal Tq. in A-P., ,, 13,254.50 5. Agricultural land measuring 3.43 acres in Cheyyhur village in Sy. No. 366/2,5,6 purchased from M.N. Venkatach ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gar, Trichy. M/s Sasi Enterprises (partners Selvi J. Jayalaalitha and Smt N. Sasikala) 1,57,125.00 13. Vacant site at H.D.Road, in 3rd Dvn, 6th Ward, Haar Nombu Chavadi in Tanjore to the extent of 5100 Sq. ft. in T.S. No.1091 purchased from K Loganathan, S/o K.N. Kuppusamy of 1279, Old Nellu Mettu St. East Gate, Tanjore. M/s Sasi Enterprises 1,15,315.00 14. Vacant site at Ward No. 6 in Mahar Nombu Chavadi to the extent of 8970 Sq. ft. in T.S. No. 1091 of Tanjore purchased from Muthu Lakshmi, W/o V.N. Somasundaram of No. 11 Thilagara Street, Ayyappan Nagar, Trichy. ,, 2,02,778.00 15. Land and building at Abishekapuram, Ponnagar in Trichy in plot No. 102, 3rd Cross Road, New Ward No. K in Block No. 30, T.S. No. 107 (totally measuring 3525 Sq. ft. purchased from Mirasi of 22-A Willion Road, Cantonment, Trichy. Smt. N. Sasikala 5,85,420.00 16. Dry land to the extent of 3.23 acres in Sy. No. 402-2 of Sundarakott ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 28.2.1990 in the name of Selvi J. Jayalalith Selvi J. Jayalalitha 2,57,886.25 31. Cash balance as on 1.7.1991 in Canara Bank of Mylapore branch with CA No. 2018 opened on 12.10.1990 in the name of Selvi J. Jayalalitha ,, 2,40,835.02 32. Cash balance as on 1.7.1991 in Canar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 kgs (as per the IT returns filed by Selvi J. Jayalalitha) (value worked out at the rate of ₹ 4,000/- per kg.) Selvi J. Jayalalitha 28,00,000.00 47. Amount deposited in MIDS No. 716767, dt. 30.4.1990 of Bank of Madurai, Anna Nagar for 2 years by Selvi J. Jayalalitha which was in force as on 1.7.199 ,, 10,00,000.00 48. Cash balance as on 1.7.1991 in CDS ITP Acc. No. 32 of Selvi J. Jayalalitha in Central Bank of India, T. Nagar branch, Chennai -17. ,, 21,389.00 49. FD of ₹ 5 lakh deposited in Sriram Investments Ltd., deposited on 12.11.1990 by Selvi J. Jayalalitha from her SB Acc. No. 5158 o BOM, Anna Nagar branch which after subsequent 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. Loan obtained from Indian Bank, Abhiramapuram in the name of Maha Subhalakshmi Kalyana Mandapam of which the principal of ₹ 17,86,000/- was outstanding besides ₹ 1,95,802/- as interest; 17,86,000 P.1355 to 1357 7. Loan obtained from Indian Bank, Abhiramapuram in the name of M/s Lex Property Development (P) Ltd., of which the outstanding principal was ₹ 83 lakh; 83,00,000 P.1328 - P.1330 P.1008 8. Loan obtained from Indian Bank, Abhiramapuram in the name of Kodanadu Tea Estate of which the principal of ₹ 375 lakh was outstanding; 3,75,00,000 P.997 to P.1003 9. Loan taken from Can Fin Homes on FD No. 352/1994-95 on 25.8.1995 by Selvi J. Jayalalitha. 75,00,000.00 P.548, P.550 P.555, P.2287 10. Income by way interest to Selvi J. Jayalalitha (vide her A/c in SB No. 23832 of CB/ Mylapore); 4,52,871.00 P.1377 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,871.50 P.1382 23. Interest from Sriram Investments to Selvi J. Jayalalitha (vide FDR No. 21330 for ₹ 5 lakh; 87,960.83 P.1382 24. Interest from Sriram Investments to Selvi J. Jayalalitha (vide FDR No. 5025367 for ₹ 20 lakh; 1,34,977.00 P.1382 25. Interest from Sriram Investments to Selvi J. Jayalalitha (vide FDR No. 45897 for ₹ 20 lakh; 4,76,023.27 P.1382 26. Interest from Sriram Investments to Selvi J. Jayalalitha (vide FDR No. 47437 for ₹ 3 lakh; 2,06,237.00 P.1382 27. Interest from Sriram Investments to Selvi J. Jayalalitha (vide FDR No. 73211 for ₹ 20 lakh; 5,02,207.00 P.1382 28. Interest from Sriram Investments to Selvi J. Jayalalitha (vide FDR No. 31251 dt. 4.5.1990 for ₹ 7 lakh during the check period; 87,024.00 P.138 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 93; 2,57,118.00 P.1510 P.1519 39. Interest from Can Finance in FDR No. 189/1991-92 for ₹ 25 lakh to N. Sasikala; 10,03,191.00 P.1510 40. Income by way of 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 ₹ 5 lakh to V.N. Sudhakaran; 13,562.00 P.1572 44. Interest from FDR 238/1993 of Canara Bank, Mylapore for ₹ 5 lakh by renewal of FDR 1401/1992; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mandaveli, building of Selvi J. Jayalalitha given on lease from January, 1994 to April, 1996; 2,33,769.00 P.655-657 55. Rental income from 21, Padmanabha Street, T. Nagar, Chennai, building of Anjaneya Printers Pvt., Ltd., given on lease Form July, 1995 to April, 1996; 3,82,500.00 X-2 56. Interest derived in SB A/c No. 4110 of Indian Bank, Abhiramapuram in the name of Master Vivek; 10,213.00 P.1138 57. Rental income and Rental advance derived for the house at No. 1, Murphy Street, Akkarai of J.S. Housing for the period from 07/1995 to 04/1996; 91,000.00 58. Rental income (including rental advance of ₹ 20,000/-) from Flat No. 7, Antu Street, 1,94,000.00 Santhome, Mylapore (RR Flats) of Smt. N. Sasikala; 59. Rental income advance from Shop No. 20 of No. 14, KhadarNa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 6,60,064.00 Add: Item No.52 - ₹ 48,35,000.00 Add: Item No.33 (Grape Garden)- ₹ 4,21,660.00 Total income - Rs.9,91,05,094.75 Thereafter, the Trial Court dealt with the expenditure incurred between the check period which is specifically stated in Annexure-IV (Ext.P-2330) which is set out hereunder: EXPENDITURE INCURRED BETWEEN 1.7.1991 30.04.1996 ANNEXURE - IV (Ex.P.2330) Sl. No. Details of Expenditure Amount in (Rs) Exhibits Witnesses 1 Amount paid towards interest in respect of the loan of ₹ 1,50,00,000/- availed by M/s. Jaya Publications from Indian Bank, Abirampuram, while closing the loan account on 25.06.1994 (Apart from the principal amount of ₹ 1,50,00,000/-) 50,93,921 P.1027 PW.182 2 Repayment of Loan availed by M/s. Sasi Enterprises from Indian Bank, Abirampuram ₹ 11,44,977.00 (P) ͅ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rporation 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 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 9,35,000/- on 13.7.95 600.00 PW.201 26 Amount paid to Salam Stores on 3.11.92 from SB A/c. 23832 of Selvi J. Jayalalitha of Canara Bank, Mylapore 9,617.00 PW.201 PW.120 27 Amount paid to Five Star Departmental Stores from C.A- 2196 of Canara Bank, Mylapore of Tmt. N. Sasikala during 1992-95 75,198.12 P-823 to 856, P.1519 PW.154 PW.201 28 Amount paid to Alagu Security Services from CA 2196 of Canara Bank, Mylapore of Tmt. N. Sasikala on 13.2.95, 22.12.95, 10.1.96 and 17.4.96 9,950.00 P.1519 P.1533 PW.201 29 Expenditure incurred towards purchase of books from American Book House, Higginbothams and India Book House by Tmt. N. Sasikala from her C.A 2196 of Canara Bank, Mylapore Account on 3.2.94 and 21.2.94 4,074.10 P.1519 P.1527 P.1537 PW.201 30 A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3,170.00 P-1519 PW.201 40 Amount paid to Abbas from CA 2018 of Canara Bank, Mylapore of Selvi J. Jayalalitha on 2.9.95 23,800.00 P-1382 P-1383 PW.201 41 Amount paid to Balus Colour Lab from CA 2018 of Canara Bank, Mylapore of Selvi J. Jayalalitha on 28.9.95 54,660.00 P-1382 P-1009 PW.178 PW.201 42 Amount paid to BPL Gallery from CA 2018 of Canara Bank Mylapore of Selvi J. Jayalalitha on 19.9.95 1,28,530.00 P-1382 P-1384 PW.201 43 Amount paid to Purnendupal from CA 2018 of Canara Bank, Mylapore of Selvi J. Jayalalitha on 20.9.95 1,00,000.00 P-1382 P-1385 PW.201 44 Amount paid to Chandrasekar from CA 2018 of Canara Bank, Mylapore of Selvi J. Jayalalitha on 12.3.96 25,000.00 P-1382 PW.201 45 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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.14 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... P-1382 P-1420 PW.201 70 Amount paid to Ramnad District Consumer Forum from CA 2018 of Canara Bank Mylapore of Selvi J. Jayalalitha on 6.6.92 (Two entries) 5,940.00 P-1382 PW.201 71 Amount paid to Tmt. Rangammal from CA 2018 of Canara Bank Mylapore of Selvi J. Jayalalitha on 1.2.92, 29.4.92, 26.9.92, 3.4.93, 8.10.93, 30.12.94 and 20.5.95. (Rs.3000+12000+7000+300 0+4000+7000+7000) 46,000.00 P-1382 P-818, 819 PW.201 PW.152 M.O.637 PW.126 72 Amount paid to Tr. Rangasamy from CA 2018 of Canara Bank Mylapore of Selvi J. Jayalalitha on 15.11.95 35,000.00 P-1382 P-1421 PW.201 73 Amount paid to A-P.Telecom from CA 2018 of Canara Bank, Mylapore of Selvi J. Jayalalitha on 27.01.1996 8,915.00 P-1382 P-1422 PW.201 74 Amount paid to Tvl.Rock Advertising from CA 2018 of Canara B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2018 of Canara Bank Mylapore of Selvi J. Jayalalitha on 19.7.95 and 9.9.95 2,00,000.00 P-1382 P-1465 P-1466 PW.201 85 Amount paid to Venkateswara Cine from C.A- 2018 on 14.10.1995 14,000.00 Ex.P138 2, P.783 86 Amount paid to Adyar Gate Hotel from C.A- 2018 on 19.09.95 1,75,246.25 Ex.P.13 82, P.1467 87 Amount paid to Agarwal Sweets from CA 2018 of Canara Bank Mylapore of Selvi J. Jayalalitha on 23.5.92 12,000.00 P-1382 PW.201 88 Amount paid to Vijaya Lakshmi Sweets from CA 2018 of Canara Bank Mylapore of Selvi J. Jayalalitha on 29.5.92 12,320.00 P-1382 P-1468 PW.201 89 Amount paid to Annapoorna Cafeteria from CA 2018 of Canara Bank Mylapore of Selvi J. Jayalalitha on 21.5.97 19,600.00 P-1382 P-1469 PW.201 ..... 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. Jayala ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Amount paid to Anchor Cabs from CA 2018 of Canara Bank Mylapore of Selvi J. Jayalalitha on 28.9.95 19,211.00 P-1382 P-1286 PW.201 PW.185 118 Amount paid to Annamalai Bus from CA 2018 of Canara Bank Mylapore of Selvi J. Jayalalitha on 27.7.93 and 12.3.94 47,790.30 P-1382 P-1481 P-1482 PW.201 119 Amount paid to Govind Cabs from CA 2018 of Canara Bank Mylapore of Selvi J. Jayalalitha on 29.9.95 15,903.00 P-1382 P-1483 PW.201 120 Amount paid to Vincent Travels from CA 2018 of Canara Bank Mylapore of Selvi J. Jayalalitha on 28.9.95 27,502.00 P-1382 PW.201 121 Amount paid as interest towards T.O.D. between 27.1.92 and 3.11.95 from CA 2018 of Canara Bank Mylapore of Selvi J. Jayalalitha 11,861.00 P-1382 PW.201 122 Expenditure incurred by way of DD Commission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 J. Jayalalitha on 20.9.95 49,500.00P 1382 P- 1490 PW.201 134 Amount paid to A-K. Vijaya Shankar from CA 2018 of Canara Bank Mylapore of Selvi J. Jayalalitha on 17.9.93, 5.4.95, 22.7.95, 20.8.94 26.10.95 49,500.00 P-1382 P-1490 PW.201 134 Amount paid to A-K. Vijaya Shankar from CA 2018 of Canara Bank Mylapore of Selvi J. Jayalalitha on 17.9.93, 5.4.95, 22.7.95, 20.8.94 and 26.10.95 80,000.00 P-1382 P-1491 To 1494 PW.201 135 Amount paid to Sun Shine from CA 2018 of Canara Bank Mylapore of Selvi J. Jayalalitha on 9.10.95 76,450.00 P-1382 P-1496 PW.201 136 Amount paid to Tr. Saminathan from CA 2018 of Canara Bank Mylapore of Selvi J. Jayalalitha on 15.9.95 and 10.10.95 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. N. Sasikala on 27.2.93 8,000.00 P-1519 P-1568 PW.201 147 Amount paid to SE, MDC from CA 2196 of Canara Bank Mylapore of Tmt. N. Sasikala on 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. ₹ 1,52,000 (ii) Amounts paid to M/s. Nathella Anjaneyalu Chetty and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apore of Tr. VN Sudhakaran on 19.9.95, 7.11.95, 26.2.96 and 26.4.96 (Rs.399 x 5) 1,995.00 P-1576 P-1599 to 1603 161 Amount debited towards DD Commission from CA 2220 of Canara Bank Mylapore of Tr. VN Sudhakaran on 16.7.93, 17.1.94, 19.1.94 and 14.5.94 300.00 P-1576 162 Interest paid towards TOD from CA 2220 of Canara Bank Mylapore of Tr. VN Sudhakaran on 31.12.94, 15.12.95 and 7.3.96 (813 + 930 + 360) 2,103.00 P-1576 163 Amount paid to Tr. Krishna from CA 2220 of Canara Bank Mylapore of Tr. VN Sudhakaran on 9.11.94 2,500.00 P-1576 P-1604 164 Amount paid to Post Master from CA 2220 of Canara Bank Mylapore of Tr. VN Sudhakaran on 30.6.96 399.00 P-1576 P-1605 165 Amount paid to upfront from CA 2220 of Canara Bank Mylapore of Tr. VN Sudhakaran on 27.10.95 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wards cheque book and DD Commission etc., on different dates 1,203.00 P-1618 PW.201 177 Amount paid to MMDA for allotment of a plot at Door No.E-83, Besant Nagar, by A-3 on 3.3.93 and development charges Rs.1500/- on 3.3.93 and scrutiny fee of Rs.475/- on 1.3.93. Plot cost ₹ 2,88,750.00 Dev. Ch. ₹ 1,500.00 Scrutiny fee ₹ 475 . 0 0 ₹ 2,90,675 . 0 0 2,90,675.00 P-725 P-718 P-726 P-727 PW.128 178 Income Tax remitted by Selvi J. Jayalalitha for A-Y. 1987- 88 Rs.2675.00 (11/92) Rs.227770.00 (28.8.95) 25,445.00 PW.227 179 Income Tax remitted by Selvi J. Jayalalitha for A-Y. 1988- 89 Rs.9282.00 (11/92) Rs.554200.00 (28.8.95) 5,63,482.00 PW.227 179 Income Tax remitted by Selvi J. Jayalalitha for A-Y. 1988- 89 Rs.9282.00 (11/92) Rs.554200.00 (28.8.95) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y Selvi J. Jayalalitha for A-Y. 1987- 88 during 11/92 34,381.00 PW.215 PW.227 PW.228 189 Wealth tax 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 re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommission from CA 1068 of Indian Bank, Abirampuram of Tr. VN Sudhakaran on 21.12.94 301.00 P-1111 PW.182 205 Amount paid towards I.C. Charges and Folio Charges from CA 1068 of Indian Bank, Abirampuram of Tr. VN Sudhakaran on 16.4.94, 13.5.94, 15.3.95, 28.3.95 and 31.3.95 125.00 P-1111 PW.182 206 Amount paid to Temporary OD as interest from CA 1068 of Indian Bank, Abirampuram on 31.12.94 388.00 P-1111 PW.182 207 Amount paid to Tr. Srinivasalu on 12.5.95 from CA 1068 of Indian Bank, Abirampuram of Tr. VN Sudhakaran. 4,410.00 P-1111 PW.182 208 Amount paid to Tr. AK. Vijaya Shankar from CA 1171 of Indian Bank, Abirampuram of Tmt. J. Elavarasi. On 22.7.95 20,000.00 P-1109 PW.182 209 Amount paid to Tr. D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tments 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 31.3.96 6,865.00 P-1109 PW.182 222 Amount paid to Tele Communication Department. From SB 4119 of Indian Bank, Abirampuram of J. Vivek s/o. Tmt. J. Elavarasi. On 14.7.95 13,072.50 P-1138 PW.182 223 Amount paid to Tr. M. Natarajan, Tamilarasi Press from CA 1053 of Indian Bank, Abi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ths from 6/91 to 4/96 at ₹ 1000/- per month (Average bill amount) - ₹ 59,000/- xii Flowers purchased for 59 months For 59 months at ₹ 1,300/- per month 6/91 to 4/96 - ₹ 76,700/- 226 Expenditure incurred in connection with the marriage of foster son Tr. VN Sudhakaran with Tmt. Sathiyalakshmi on 7.9.95 A- Expenditure incurred for erection of marriage pandal over and above the admitted / recorded payments (as estimated by P.W.D authorities) ₹ 5,21,23,532.00 b. Expenditure incurred towards cost of food, mineral water and thambulam (assessment based on available materials) ₹ 1,14,96,125/- c. 34 Nos. TITAN Watches purchased on cash payment. ₹ 1,34,565.00 d. Amount paid to Tr. Syed Bawker towards stitching charges for wedding dress of Tr. VN Sudhakaran - ₹ 1,26,000/- e. Amount paid for purchase of 100 silver plates (paid by Tmt. N. Sasikala) ₹ 4,00,000 f. Postal expenses for dispatch of 56,000 wedding invitations ₹ 2,24,000 6,45,04,222.00 P-1019 P-1371 to P- 1376 P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .95 4,590.00 P-1613 P-1617 PW.201 235 Amount spent towards providing extra amenities in Swaraj Mazda Vans (Three) TN -09/H-3541, TN-09/ H- 3595 and TN-09/H-3506 of M/s. Anjaneya Printers (P) Ltd., paid to Tr. Mohan, Nikhil enterprises, Chennai - 1 4 7,50,000.00 P-1940 P2031 PW.201 PW.148 236 Expenditure towards electricity consumption charges in respect of SC No.211-11-179 dt 1.8.75 of Jaya Publications at C-8, Thiru-vi-ka Industrial Estate, Chennai 32 for the check Period 2,27,750.00 P-805 PW.149 237 Expenditure towards electricity consumption charges in respect of S.C. No.211-11-180 dt. 1.8.75 of Namadhu MGR at C-8 Tr-vika Industrial Estate for the check period 27,529.00 P-806 PW.149 238 Expenditure towards electricity consumption charges in respect of SC No.211-11-261 dt 17.3.90 at MF-9, Guindy Industrial Estate, Chennai 32 in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1935 PW.30 PW.201 11,56,56,833.41 245 Vijayasekar Services 44,341.35 246 Thevar Automobiles 9,73,452.00 247 Kumaran Silks 30,00,000.00 Grand Total 12,00,59,338.76 It appears that the aforementioned expenditures are classifiable as follows: (a) Amounts paid towards interest in respect of the loan. (b) Amounts paid to Corporation of Madras towards sanction of building plan. (c) Amounts paid to Corporation, MMWSSB. (d) Amounts paid for the purchase of provisions. (e) Amounts towards LIC premium. (f) Amounts paid towards DD Commission. (g) Amounts paid to telecom and Electricity Department. (h) Income Tax and Wealth Tax. (i) Household Expenses. (j) Marriage Expenses. (k) Other outgoings. 23. The Trial Court after analyzing oral and documentary evid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ₹ 53,60,49,954.00 beyond the known source of income of A1. Hence, A1, A2, A3 and A4 are hereby convicted for the offence punishable u/Sec. 120-B of I.P.C. R/w. Sec. 13 (1) (e) R/w. Sec. 13 (2) of 1988 Act. Prosecution has proved beyond 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 as above. Hence, A2, A3 and A4 are hereby convicted for the offence punishable u/Sec.109 of I.P.C. R/w. Sec. 13 (1) (e) R/w. Sec. 13 (2) of 1988 Act. 25. The Trial Court after hearing the learned counsel appearing for the accused and the learned Public Prosecutor on sentence, awarded the following sentence against the accused: For the offence u/Sec. 13 (1) (e) R/w. Sec. 13 (2) of the 1988 Act, A1 Selvi. J. Jayalalitha, D/o. Late. Jayaram, is hereby sentenced to undergo simple 908 Spl. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Out of the fine amount recovered as above, a sum of ₹ 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 the accused before the High Court of Karnataka at Bangalore challenging the order passed by the Court of 36th Addl. City Civil Sessions Judge at Bangalore. The High Court on its analysis came to the conclusion that the value of assets at the end of the check period in respect of accused Nos.1, 2, 3 4 together along with the firms/companies involved was ₹ 66,44,73,537/- and accepted the value of the assets as indicated by the prosecution. The High Court, thereafter applying the principles laid down in Krishnanand Agnihotri Vs. The State of Madhya Pradesh , AIR 1977 SC 769 = (1977) 1 SCC 816, on a calculation of total assets, income expenditure of accused Nos.1 to 4, their firms and companies, arrived at the percentage of disproportionate assets as under: PARTICULARS AMOUNT (IN RUPEES) TOTAL AMOUNT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .835/2014, 836/2014, 837/2014 and 838/2014 are allowed. [i] The Judgment of Conviction and Sentence passed in Spl.C.C.No.208 of 2004, dated 27.9.2014, on the file of the 36th Additional City Civil Sessions 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n challenged by anybody and therefore it stands. 32. Mr. B.V. Acharya, learned senior counsel appearing on behalf of the State of Karnataka contended that if the final figures arrived by the High Court (appearing at Pages 997-998 of its judgment) are 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 ₹ 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 ₹ 14,38,93,645 i.e. 41.3% not ₹ 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 ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Disproportionate Asset (D.A.) = 35,73,04,006/- % of D.A. = 35,73,04,006 x 100 16,92,60,503 = 211.09% Hence, he submitted that this process alone is sufficient to sustain the conviction. 33. Mr. Acharya further contended that the findings of the High Court regarding the value of assets are patently erroneous and unsustainable. He submitted that the High Court has accepted the value given by DVAC except for a single head i.e., value of additional constructions. The High Court has accepted the amount of expenditure except for 1 item i.e. marriage expenditure and the High Court has added 7 items towards the income which are patently erroneous. Mr. Acharya drew our attention to Annexure-III (64 items Annexure-III, Pages 1224-1233 of Vol.V) and submitted that the income includes loan, interest, rental, agricultural income and fixed deposits. According to the prosecution, the said amount is ₹ 9,34,26,054/- (which would appear at Pages 1224-1233 of Vol.V). According to the Trial Court, the income would be ₹ 9,91,05,094.75/- (appearing at Page 1396 of Vo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Total Rs.24,17,31,274.00 35. Mr. Acharya pointed out that the High Court has wrongly taken into account the above-mentioned 10 loan amounts, being the loan from Indian Bank. Regarding the loan of ₹ 1,50,00,000/- by OMTL Jaya Publication, which is shown as item No.1 in Annexure-IV Ext.-P 2330, Page 1397 of Vol.VI, (being expenditure list), he submitted that this amount cannot be taken into account by the High Court. He also drew our attention to the deposition made by PW-182 and PW-160 wherefrom it appears that the said loan was repaid. The Trial Court has dealt with such loan as it is specifically stated that the said loan was closed on June 25, 1994. Mr. Acharya therefore submitted that the High Court taking this amount again, would amount to a double entry. 36. Regarding MD Loan of ₹ 3,75,00,000/- which is shown as Item No.8 in Annexure III Exh.P-2329, Page 1225 of Vol. V (income list), it is submitted by Mr. Acharya that this loan has been discussed by the Trial Court at Page 1237-1239 of Vol. V while dealing with income and the Trial Court has accepted the case of the prosecution. The accused at no po ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which is shown as item No.2 in Annexure-III Ext.-P 2329, Page 1224 of Vol. V, (Income list) and Item No.3 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-1211-1212 through him. He submitted that although the Bank had sanctioned ₹ 50 lakhs, it had released only a sum of ₹ 28 lakhs and 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 1416 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 the amount of ₹ 50 lakhs under this head. 41. Regarding the loan of ₹ 25,00,000/- by Sasikala which is shown as item No.1 in Annexure-III Ext.-P 2329, Page 1224 of Vol. V, (Income list) and Item No.2 in Annexure-IV Exh.P- 2330 Page 1397 of Vol. VI (Expenditure list), it is submitted by the learned counsel that this amount has been deposed to by PW-182 and marked as Exh.P-1260 through him. He submitted that the principal amount due ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as ₹ 19,81,802 and the Trial Court s discussion on this loan is at Page 1234 of Vol. V while dealing with income and at Page 1417 of Vol.VI while dealing with expenditure. Therefore, Mr. Acharya submitted that this income has been duly considered and the High Court could not have taken a sum of ₹ 17.85 lakhs under this head. 45. Mr. Acharya thus submitted that the detailed discussion in the preceding paragraphs will clearly disclose that that the High Court considered these 10 items against the weight of the evidence on record and the entire amount of ₹ 24,17,31,274/- which after deduction of ₹ 5,99,85,274/- comes to ₹ 18,17,46,000/- is liable to be set aside. He further contended that the accused have nowhere in their written statement under Section 313 Cr.P.C., their Memorandum of Appeal or their written arguments before the Trial Court and the High Court, taken any plea of any loan from nationalized banks being left out of consideration while calculating the income and expenditure and then arrived at the value of ₹ 9,34,26,054/- (Page 1224, Vo. V) and ₹ 11,56,56,833/- (Page 1397, Vol. VI), respectively. Therefore, he contended that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therance of the same, the Accused No.1 (A1) who is a public servant had come into possession of assets disproportionate to the known sources of income to the tune of ₹ 66.65 crores during the check period (1991-1996). It is further the case of the appellants that A2 to A4 have abetted A1 in the commission of the offence. 48. It is the case of the appellants that when A2 to A4 had jointed the household of A1, they did not have any worthwhile property/asset in their names. They did not have any independent source of income. Properties were acquired in the names of newly formed or acquired thirty two firms/companies and two existing firms, i.e., Jaya Publications and Sasi Enterprises in which A1 and A2 were partners. Among these entities, only few were registered as a company under the Companies Act, 1956 and all others are firms. In the said firms or companies, A2 or A3 or A4 or all of them are partners or directors. It is not in dispute that the said properties were acquired during the check period. It is further submitted that it is on record that six firms were registered on a single day, i.e., on 25.01.1994, where partners were A2, A3 and A4 and ten other firms were re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 09 4. Ram Narayan Popli Vs. Central Bureau of Investigation - (2003) 3 SCC 641 5. Noor Mohammad Mohd. Yusuf Momin Vs. State of Maharashtra (1970) 1 SCC 696 6. M.G. Agarwal Vs. State of Maharashtra AIR 1963 SC 200 = (1963) 2 SCR 405 7. Firozuddin Basheeruddin Ors. Vs. State of Kerala - (2001) 7 SCC 596 52. He further submitted that to prove conspiracy it is not possible to have direct evidence. The same has to be proved by drawing inferences from the proved circumstances. It is fundamental that the ultimate decision has to be by considering cumulative effect of all the circumstances taken together. He also submitted that in the case of conspirators, each one became an agent of the other and is bound by the actions of others. So far as A1 and A2 are considered, one is an agent of other in three ways (1) as partners of two firms, (2) by virtue of power of attorney, (3) capacity as conspirator. To support his contention, he submitted that: A1 had given specific instruction to follow the directions given by A2 (PW 198 -M. Jayaraman in Vol.9 Pg 28-58 @ 29). Huge unaccounted cash deposits are made to these two accounts from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs.) As Per Prosecution Page 1543 - Vol VI Value (in Rs.) As Per Trial Court Page 1837 1838 Vol VII Value (in Rs.) As Per High Court Page 966979 Vol IV As per Accused in their Written Submission Page 2350 Vol IX I Immovable properties (consideration, cost of registration) 1 to 173, 175, 292, 297, 30I, 302(i), 305 (Excluding item Nos.24, 31, 33, 64, 66, 127, 145,150, 159) 19,77,18164.70/- Pg 1590 Vol VI 20,07,80,246 6,24,09,120 Pg : 978 Vol IV Only 97 Sale Deeds considered 16,19,03,301/- II Cash paid over 24, 31, 33, 64, 2,53,80,619.00 1,58,30,619 -Nil- NIL above 66, 127, 145, Pg : 978 Vol IV consideration 150, 159 III New or additional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... VALUE OF IMMOVABLE PROPERTY PROSECUTION TRIAL COURT HIGHCOURT AS PER ACCUSED 19,77,18164.70/ - Page 1543 Vol VI 20,07,80,246/- Page 1837 Vol VII 6,24,09,120/- Page 978 Vol IV 16,19,03,301/- Page 2350 Vol IX Some Important Wi tnesses Who speak of purchase of property are : Vendors Sub- Registrars P.W-40 Gangai Amaran (About names 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 98 643 2250.41 1,52,59,076/- the residential building at D. No. 3/178C Vettuvankeni, Chennai 5. 189 New/Additional Construction in residential Building at No.1, Murphy St., Akkarai, Chennai 98 644 271.8 20,38,959/- 6. 179 New/Additional construction in the building at the Grape Garden Farm House, in the limits of Jeedi Meth and Petpesherabad Villages in A.P. 98 645 1009.9 6,40,33,901/- 7. 180 New/Additional construction in the posh Bangalow at Siruthavur in Chegai MGR Dist 107 661 1911 5,40,52,298/- 8. 176 New/Additional construction in Farm House Bungalows at Payannur in Chengai Anna District 107 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 construction between June 1992 and 1993, of the building at 144 782 109.99 6,83,325/- Plot No.102, ITI Cross, Road, Pon Nagar, Trichy, owned by Tmt. N. Sasikala (covered by Document No.2256/90 dt. 3- 5-90 of S.R.O.T. O.R.B., Trichy) 20. 147 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mitted valuation of buildings at ₹ 8,60,59,261/- excluding one building of Anjaneya Printers. If the value of this construction of ₹ 2,13,63,457/- is added to this sum, the total will be ₹ 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 ₹ 5,53,02,334/- to ₹ 2,51,59,144/- and Silverwares from ₹ 48,80,800/- to ₹ 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 ₹ 6,45,04,222/- (as per prosecution) to ₹ 28,68,000/-, i.e., a reduction of ₹ 6,16,36,222. According ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rental Income 3,22,000/- According to Mr. Acharya, there is no lawful source so far as the Gift is concerned. He further submitted that the Trial Court has rightly disallowed the claim. The High Court has erroneously fixed it at ₹ 4 crores based on belatedly filed Income Tax returns, which even if accepted, amounts to only ₹ 1.15 Crores. 61. Therefore, he submitted that if the above is the correct position, the conclusion of the Trial Court is fully justified. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 65. He further contended that in a disproportionate assets case, the prosecution has to discharge the initial burden to prove that the assets of the accused were disproportionate to the known sources of income. The prosecution must establish beyond reasonable doubt, the value of the assets possessed by the accused and it has a further burden to show that the properties which were standing in the name of third parties, like A2 to A4 and the companies, were being held benami for the public servant. Once the prosecution discharges this 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 Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income is not confined only to the source known to the prosecution but every other source of income which the accused is able to establish during the course of trial. In support of the said contention, he relied upon the following decisions of this Court: C.S.D. Swami Vs. The State - (1960) 1 SCR 461 P. Nallammal Anr. Vs. State - (1999) 6 SCC 559 Krishnanand Agnihotri (supra) M. Krishna Reddy (supra) 69. According to the learned senior counsel, income tax/wealth tax returns and assessment orders, being public documents, are admissible in evidence. He further submitted that this Court has 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uction) by A1 during check period amounted to ₹ 6,52,34,410.00 for which she had satisfactorily explained out of her known sources of income. The major heads of assets and the errors committed by the Trial Court were highlighted as hereunder: A1 acquired only one property during the entire check period. It is vide Exhibit P1 for ₹ 10,00,000/- shown as item 18 in Annexure-II. She made two constructions, a Farm House at Jeedimetla Village near Hyderabad and a construction at 31-A Poes Garden and renovated her residential building at 36 Poes Garden. 74. Vis- -vis new and additional constructions, Mr. L. Nageswara Rao, learned senior counsel (as he then was) submitted that according to the prosecution the total cost was ₹ 13,65,31,901/- and according to the accused as determined by the Income Tax authorities it is ₹ 3,62,47,700/-. Hence, he submitted that deduction of ₹ 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -A Poes Garden Rs.1,35,10,500/- Hyderabad Farm House addition Rs.1,39,62,300/- Compound Wall for Hyderabad Rs. 11,00,000/- Farm House Total Rs.3,62,47,700/- whereas the prosecution has wantonly inflated the expenditure in a sum of ₹ 13,65,31,901/-. Therefore, there has to be deduction of ₹ 10,02,84,201/- from the Annexure- II which denotes the value of the assets during the check period. 77. He further submitted that the prosecution has shown the DVAC valuation of golden jewellery acquired by A1 during the check period as Item 286, 288, 289, 290 291 to ₹ 5,14,19,462.25. The learned senior counsel further pointed out that the Trial Court s valuation of gold jewellery acquired by A1 during the check period is ₹ 2,51,59,144/-. With regard to the gold jewellery possessed by A1, Mr. Rao submitted that the total jewellery as on 31.3.1991 which was 21.280.300, was valued at ₹ 1,50,56,146/- and there is no addition to the jewellery in that year. The above figure was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0. He had given the total value of 91 watches at ₹ 6,87,350/-. However, it would be evident from the testimony of these witnesses that they are not experts as they have no special proficiency on valuation of watches nor do they have experience in evaluating watches. He further submitted that A1 was not required to disclose personal effects as it is exempted under Section 2(14) of the Income Tax Act. Hence, the amount of ₹ 15,90,350/- is liable to be excluded from the computation of the assets of A1. He also submitted that the entire amount with regard to footwear and sarees has to be excluded from the assets of A1 since the Trial Court has disbelieved the version of the prosecution. 81. The learned senior counsel next turned to the expenditure. Annexure-III of DVAC shows that the valuation of expenditure attributable to A1 to A4 and the companies during the check period is ₹ 11,56,56,833/- and as per the prosecution the expenditure attributable to A1 is ₹ 8,98,69,833/-. A1 s case was that the expenditure incurred by her during the check period was ₹ 2,49,28,815/. As per the Trial Court s judgment its value is ₹ 8,49,06,833/- (Page 1542 Vol.V ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nditure for the marriage as well as the cost which was borne by A1. According to the learned counsel, the prosecution neither could establish the cost of construction of marriage pandal nor it led any evidence to show that A1 incurred any expenditure. Hence, the amount of ₹ 5.21 crores cannot be said to have been established by the prosecution and hence the entire amount is liable to be deducted. The prosecution has not proved the entire item 226 in Annexure-II. Hence, the entire amount of ₹ 6,45,04,222/- is liable to be excluded. 83. Learned counsel further pointed out that the Income Tax Department had accepted the version of A1 that she had incurred only an expenditure of ₹ 29.81 lakhs, all by cheques except for a sum of ₹ 3.1 lakhs. According to him, at the most, ₹ 29,66,552/- is to be added in respect of the expenditure incurred by A1. According to him, the findings of the Trial Court cannot be accepted to the tune of ₹ 3 crores towards the expenditure for marriage. On the contrary, the High Court has rightly accepted the case of the accused. 84. The Trial Court and the High Court have calculated the combined total income of A1 to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mitted that the said income ought to have been taken into consideration by the Trial Court. 88. Learned senior counsel further submitted that gift has been recognized as valid source of income by this Court in its judicial pronouncements and he relied upon the case of M. Krishna Reddy (supra) and Kedari Lal (supra). It is further pointed out that A1 had received an amount of ₹ 6,28,569.00 from Sasi Enterprises in her capacity as partner during the check period which was not repaid by A1 to M/s. Sasi Enterprises, thereby treating it as her drawings as a partner of the said firm. 89. It is further pointed out that A1 had received a loan of ₹ 1,53,03,000.00 from A2 and her proprietary firms. Jaya Publication was started in the year 1988. At the relevant time, A1 and A2 were the only partners. It was carrying on business of printing and was running a daily newspaper called Namadhu MGR. This daily newspaper used to carry all the announcements of the General Secretary as also all the AIADMK Party s news. Jaya Publication apart from its regular business income had also received money through subscribers deposit schemes. It is submitted that with a view to boo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t as her drawings as a partner of Jaya Publication. It is submitted that the entire amount of ₹ 13,89,19,475.00 is also the resource available to A1 and A2 for offering an explanation under the 1988 Act. 91. Referring to the attribution of assets of A2 to A4, six companies and other firms to A1, the learned senior counsel contended that the prosecution has included the properties acquired by the following companies to the account of A1 and the value of all the properties has been included in the total assets. S.No. NAME OF THE COMPANY DATE OF INCORPORATION 1. Lex Property Development Pvt. Ltd. 25.09.1990 2. Meadow Agro Mills Ltd. 11.10.1990 3. Ramraj Agro Mills Ltd. 28.05.1986 4. Riverway Agro Pvt. Ltd. 22.10.1990 5. Indo Doha Chemicals and Pharmaceuticals Ltd. 02.01.1990 6. Signora Business Enterprises Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... prior to the check period as per DVAC, would appear from the following chart: ANNEXURE I Properties acquired by Accused No.2, Jaya Publications and Sasi Enterprises prior to check period according to DVAC which is not disputed TMT. N. SASIKALA Description of the Property Reference of Document Sale deeds Stands in the Name of Value of the property Rs. Annexure No. Item No in Annexure I Land and flat No.7, R.R. Flats, 3/4 Antu Street, Santhome, Chennai-4 of Tmt.N.Sasikala 17.04.1989 Sale deed Tmt.N.Sasikala 3,13,530 1 6 Land and Building at Abishekapuram Village, Ponnagar, Trichy in Plot No.102, 3rd Cross Road, New Ward, No.K, Block No.30, T.S.No.107, totally measuring 3525 Sq Ft purchased from MIRASI of 22A, William Road, contonment Trichy, 30-12-1988 Sale Deed Tmt. N. Sasikala 5,85,420 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 SA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2,99,845 1 22 Cash Balance as on 01/7/1991 in Canara Bank, Mylapore CA 2061 Opened on 21/3/1991 in the 07-01-1991 M/s. Sasi Enterprises- Partners Selvi Jayalaitha and Tmt. N. 2,29,578 I 33 name of Sasi Enterprises in which Both Selvi J.Jayalalitha and Tmt. N Sasikara are partners Sasikala Amount paid of 72/12000 on share of land in 11 and 1736 sq.ft in b/s at 14, gems court Khadhar Navaz Con Road, Nungambakkam paid by Ch, dated 23.4.90 of CB which was registered as document No.641/93 of S R Thousand Lights, Dated 28/7/1993 28-7-1993 M/s. Sasi Enterprises - Partners Selvi Jayalaitha and Tmt. N. Sasikala 50,000 1 50 TOTAL 14,39,674 GRAND TOTAL Rs. 59,29,168 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Green Fam House 1,77,53,017 Jay Farm House 1,42,84,079 JJ Leasing and Maintenance 1,838 Jay Real Estate 44,37,036 JS Housing Development 41,35,497 Jaya Contractors and Builders 10,98,087 Kodanad Tea Estate 7,60,00,000 Sakthi Constructions 1,02,490 Lakshmi Constructions 1,02,490 Gopal Promoters 1,02,490 V.N.Sudhagaran - Individual 1,19,89,961 J.Elavarasi 6,04,07,252 J.Vivek - Son and daughter of Mrs.J.Elavarasi 10,20,823 Son and daughter of Mrs.J.E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ₹ 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-41, Pg. 107112 of Vol. 14 Ex- P-I519, Pg. 263 - 276 of Vol. 61 (CA 2196 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tmt. N. Sasikala Ex - P 93, Pg. 13 - 26 of Vol. 22 12,060 I I 40 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 34 PW 39 28-10-1993 Sale deed Tmt. N. Sasikala Ex P-86, Pg. 187 - 200 of Vol. 21 37,381 Il 41 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 38 PW 39 28-10-1993 Sale deed Tmt. N. Sasikala Ex - P-90, Pg. 231 - 241 of Vol. 21 37,385 II 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -97, Pg. 56 - 61 of Vol. 22 - Sale deed 2,86,520 II 96 D-25I to 257 DW-93 5.28 Acres in S.No.384/I, 3, 404/1, 381/3,4,5,6,7,10,11 in Payyanoor Village - PW 40 PW 159 10-11-1994 Sale deed Tmt. N. Sasikala Ex - P-98, Pg. 62 - 67 of Vol. 22 - Sale deed 2,54,670 II 97 D-25I to 257 DW-93 0.40 acres in S.No.383 in Payyanoor Village - PW 40 PW 159 10-11-1994 Sale deed Tmt. N. Sasikala Ex P-99, Pg. 68 - 71 of Vol. 22 -Sale deed 1,94,012 II 98 D-251 to 257 DW-93 0.40 acres in S.No.383 in Payyanoor Village - PW 40 PW 159 10-11-1994 Sale deed Tmt. N. Sasikala Ex-P-I00, Pg. 72 - 76 of Vol. 22 - Sale deed 2,04,012 II 99 D 251 to 257 DW-93 2.76 acres in S.No.403/1 in Payyanoor Village - PW 40 PW 159 10-11-1994 Sale deed Tmt. N. Sasikala Ex - P-101, Pg. 77 - 80 of Vol. 22 - Sale deed 1,7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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-912Sale deed (Pg. 142 - 147 of Vol.55) 3,91,655 Il 171 0.90 acres in S.No.386/15, 385/1, 2, 3, 4, 5, 6 10 Payanoor Village - PW 41 PW 159 19-7-1995 Sale deed Tmt. N. Sasikala Ex-P-913- Sale deed (Pg. 148 -153 of Vol. 55) 3,21,030 II 172 (Totally ₹ 10,56,880/- incl. stamp duty regn fees for items 170- 172) New/Additional Construction in Farm House Bangalows at Payyanur in Chengai Anna Dist - PW 107 Evaluation Report Tmt. N. Sasikala Ex-P-662, Pg. 31 - 87 of Vol. 34 - which is 1,25,90,261 II 176 cash Balance as on 30/4/1996 of ca 1071 of IB Apiramapuram opened on 11/3/1994 - PW 182 30-4-1996 Tmt. N Sasikala Fresh Mushroom Proprietrix - Ex-P- 1117, Pg. 233 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -P-1519, Pg. 263-276 of Vol. 61 payment dt 04,04.96 for ₹ 10,60,790/- for Items 243 244 5,11,118 II 244 TN 09 - E 9036 ( Maruthi car) PW 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Adyar Village M/s. Jaya Publications (Doc No.4640/90 dt.8.12.1990 of SRO, Adyar 08-12-1990 Sale deed M/s. Jaya Publications Prior to check period 5,28,039 II 17 4664.60 sq.ft, together with building in T,S.No.4345, S.No.33/3pt, 32/4pt in St. Thomas mount village Plot No, s - 7 Block No, 6 Thiru vi ka Industrial Estate Guindy - PW 3 (to read pg3 S.No.10) 26-9-1991 Sale deed M/s Jaya Publications Selvi J.Jayalalitha and Tmt. N. Sasikala) Ex-P-1020 - CA 792 Indian Bank - Ex-P-1023 - Copy of BPO for ₹ 10L ExP-1903-CA 2047-Canara Bank Ex-P-1930 -Copy of DD for ₹ 2.60 Lacs 15,05,428 II 20 Tansi (Foundary) Land and Building to the extent of 55 grounds and 2143 sq.ft i.e 12462.172 sq.ft. in S.No.86,87,88,89,91,92,and 93 part of alandur hamlet of adayar village , Thiru.vi.ka Industrial Estate Gunidy - PW 4, PW 3 and PW 126 (for seizure) 02-06-1992 Sale deed M/s Jaya Publications ( Selvi J.Jayalalitha and Tmt. N. Sasikala) Ex-P-1028 - CA 792 Indian Bank - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TN -01-0009 Tata Estate Car - PW57 PW 66 29-07-1992 M/s Jaya Publications ( Selvi J.Jayalalitha and Tmt. N. Sasikala) Ex-P-1903-CA 2047 Canara Bank . Ex-P 226 (Invoice) P.263 (Registration) 4,06,106 II 234 TN - 01 N - 9999 Swaraj Mazda Van - PW 60 and PW 66 21-11-1991 M/s Jaya Publications (Selvi J.Jayalalitha and Tmt. N. Sasikala) - To be excluded Ex-P-245 (Invoice) P.262 (Registration) 3,85,520 ll 236 TN - 01 - Q 0099 Tata Mobile van - PW 57 and PW 66 21-12-1994 M/s Jaya Publications ( Selvi J.Jayalalitha and Tmt. N. Sasikala) Ex-P-1903 - CA 2047 Canara Bank Ex-P- 224 (Invoice) 2,81,169 II 238 TN - 04 E 0099 Mahindra Armada Jeep - PW 62 and PW 67 29-04.1993 M/s Jaya Publications ( Selvi J.Jayalalitha and Tmt. N. Sasikala) - To be excluded Ex-P-1903 - CA 2047- Canara Bank Ex-P-251 (Invoice) Ex-P-252 (Receipt) P266 (Registration) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 (Prior to the check period) Sale deed M/s. Sasi Enterprises Partners Jayalaitha and Tmt. N. Sasikala E x P-769 (sale deed)X-19 - Rental agreement 2,10,919 II 9 Land and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C C Roof 1155 sq.ft. in ACC sheet roof in S.No.89 of Alandur village Hamlet of Adayar, Block No. 12, (Tansi Enamalled Wires) - PW 3 (refer to Page 5) 10-07-1992 Sale deed M/s. Sasi Enterprises - Partners Selvi Jayalaitha and Tmt. N. Sasikala Ex-P- 1940 - CA -2061 of SE with Canara bank 90,17,089 I I 25 Land and Building to the extent of 1 ground and 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 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M/s. Sasi Enterprises- Partners Selvi Jayalaitha and Tmt. N. Sasikala Ex-P-1940 - CA -2061 of SE with Canara Bank 4,59,976 I I 214 Cash Balance as on 30/4/96 in CA 1044 of IB Abiramapuram opened on 15/12/93 in the - PW 182 30-4-1996 M/s. Sasi Enterprises - Partners Selvi Jayalaitha and Tmt. N. Sasikala Ex-P-1255 - CA -1044 of SE with Canara 1,02,490 II 221 Bank TSR 333 (Swaraj) Mazda Van ***12/1/1989 12-01-1989 Before check period M/s. Sasi Enterprises - Partners Selvi Jayalalithaa and Tmt.N.Sasikala 2,99,845 II 242 Tn 01 W 1233 Tempo Traveller 19-01-1994 M/s. Sasi Enterprises -Partners Selvi Jayalaitha and Tmt. N. Sasikala Ex-P- 1940 - CA -2061 of SE with Canara Bank Ex-P- 238 (Invoice) Ex-P-265 (Registration) 4,24,268 II 245 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 09-03-1994 Sale deed M/s. Green Farm House Ex-P-I189 - CA No .I058 of Indian Bank. ₹ 539400/- is to be admitted 8,65,400 II 72 Cash portion of ₹ 335200/- to be excluded 16.75 cents in R.S.No.1/1f old R.S.No. 1/1c4 at Sholinganallore Village - PW 16 - (Jagadeesh A Raja) 09-03-1994 Sale deed M/s. Green Farm house 125 II 73 Actual consideration paid to K.T Chandravadanan 22, Bazullah Road, Chennai -17 by DD ₹ 235200/- on 8/3/94 and cash ₹ 335000/- on 10/4/1994 - PW 16 - (Jagadeesh A Raja) 08-03-1994 Sale deed M/s. Green Farm House Ex- P-1189 - CA No.1058 of Indian Bank. ₹ 235200/- is to be admitted 5,70,200 II 74 Cash portion of ₹ 335200/- to be excluded 34 cents together with 26 coconut trees in S.No. 165/88 in Vettuvankani Village - PW 159 (Rajagopal) Owner Mrs.Shanti ' Subramaniam Others - Not examined 16-6-94 Sale deed M/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ₹ 48,10,670/- 80,36,868 II 183 (Value to be excluded is ₹ 32,26,198/-) New additional construction in residential building (4 Nos) in the campus at No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Cash Balance as on 30/4/96 CA 1050 of IB Abirampram opened on 27/1/94 30-4-1996 M/s. Jay Real Estate Ex-P1160-CA No.I050 of Indian Bank 168 II 215 TOTAL 44,37,036 J.S HOUSING DEVELOPMENT Land and Building in Plot No.40 and 41 with a built up area of 900 sq.ft. both in the Ground and first Floors (Land extent 5 grounds) of SolinganaIllur Village in S.No.1/1c5 which is now known 10-8-94 Sale deed M/s. J.S. Housing Development Ex-P-1170 - CA No.1062 of Indian Bank 9,95,670 II as No.1. Murphy street, Akkari Village - PW -26 - Kama! Batcha - to read 85 One sixth undivided share of land in five grounds and 1133 sq.ft. in S.No. 3334/Luz Av enue Mylapore 21-3-1995 Sale deed M/s. J.S. Housing Development Ex-P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cheques dated 5/5/1995 - PW 177 (Indian Bank - Mr.Shanmugasundaram) TOTAL 7,60,00,000 SAKTHI CONSTRUCTIONS Description of the Property Reference of Document Stands in the Name of Value of the Property Rs. Ann exur e No. Item No in Annexure II Cash Balance as on 30/4/96 in CA 1149 of 1B Abiramapuram opened on 23/3/93 30/4/1996 M.s. Sakthi Constructions Ex-P-2016 - CA No.1149 of Indian Bank 1,02,490 I I 222 TOTAL 1,02,490 M/S LAKSHMI CONSTRUCTION Description of the Property Reference of D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dhakaran 1,45,891 II 65 Amount Paid over and above the cost in document No.43/94 dated 5/2/94, S R North Madras to the seller Tr. Gopinath 02-05-1994 Sale deed Tr. VN.Sudhakaran 4,85,000 II 66 3.30 Acres in S.No.403/3, 401/2 in Siruthavur Village 24-5-1994 Sale deed Tr. VN.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 ₹ 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11 acres and 28 cents S.No.42/2 in Karungullpallam and S.No.383 to 02-08-1994 Tmt. J. Elavarasi 2,27,026 II 61 386 and 393 in Siruthavoor Village Sale deed 10.78 Acres in S.No.379.381, 382, 342, in Sriuthavoor Village 02-08-1994 Sale deed Tmt. J. Elavarasi 2,02,251 II 63 Amount paid towards the cost of acquisition of 10.78 acres over and above the document value doc No. 42/94 dated 8/2/1994 of SRO North Madras 08-02-1994 Sale deed Tmt. J. Elavarasi 4,65,000 II 64 one sixth undivided shares of land in five grounds and 1133 sq.ft. in S.No. 3334/1a in Mylapore Luz Avenue (Chennai -4) 21-3-1995 Sale deed Tmt. J. Elavarasi 10,87,196 II 154 New additional construction in the posh Bangalow at Siruth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. Vivek ( minor) Represented by his mother and natural guardian Tmt. J. 2,42,211 II 193 Elavarasi No.7 East Beach Road , Neelankarai, Chennai 41 TOTAL ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Cash Balance as on 30-4-96 in CA 1179 of Indian Bank Abiramapuram opened on 5/5/95 in 30-4-1996 M/s. Jaya Finance (P) Ltd 1,760 209 TOTAL GRAND TOTAL 4,60,24,43 9 ANNEXURE - II Properties acquired by Anjaneya Printers (P) Ltd., at the end of check period according to DVAC I/5th Share of I 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 II 51 1/5th Share of 1 ground and 1086 Sq.ft. together with a super structure in S.No.30 I , 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 20,43,000 II 185 Cash Balance as on 30-04-96 in CB. Mylapore in CA 2250 Opened on 29-07-93 30-4-1996 M/s. Anjaneya Printers P Ltd 10,75,336 II 213 TN 09 H 3595 ( Swaraj Mazda Van) 26-03-1996 M/s. Anjaneya Printers P Ltd 5,56,999 II 251 TN 09 H 3541 ( Swaraj Mazda Van) 26-03-1996 M/s. Anjaneya Printers P Ltd 5,56,999 II 252 TN 09 H 3586 ( Swaraj Mazda Van) 25-3-1996 M/s. Anjaneya Printers P Ltd 5,56,999 II 255 Machinery subsequently purchased for M/s. As per Evaluation Report ** M/s. Anjaneya Printers P Ltd 2,16,42,000 II 294 A developed plot bearing No. 6 to an extent of 1.12 acres in Industrial estate Thirumuzhi in the name of M/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 SR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... High court findings Exhibits PW's Exhibits DW's 13 Vacant site at Blake HD. Road,Tanjore Town, 3rd Division, 6th Ward, Mahar Nombu Chavadi to the extent of 5100 Sq Ft in T.S.No.1091 M/s. Sasi Enterprises (Doc No.456/90 dt.19-4-90 of ORB, Thanjavur 1,15,315 Shown in Annexure - I. Item -13 Acquired prior to check period. Hence, whole amount to be excluded 14 Vacant site at Blake H.D. Road,Tanjore Town, Mahar Nombu Chavadi, extent 8970 Sq.ft. in T.S.No.I019 M/s. Sasi Enterprises, . (Doc No.457/90 dt 19-04-1990 of ORB, Thanjavur) 2 ,02 ,7 7 8 Shown in Annexure - I, Item -14 Acquired prior to check period. Hence whole amount to be excluded 15 Land and building at Abi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red Para 77.1 77.2, Pg.1662 - 1665 of.Vol. VII. Page No.97 8 of Vol No_I V 33 Cost of acquisition of shares by M/s. Anjaneya Printers (P) Limited at No. 48 Inner Ring Road, Ekkattuthangal, on 1-9- 93 (Towards transfer of shares of ₹ 64,05,000/- machinery cost of ₹ 20,16,000/- from Tr.Naresh Shroff 84,21,000 MOU dated 01.09.1993 - Ex- P-4I, Vol. 14 of Pg. 107-112) at page 108 PW-I5 (Vol No.2 page 77-83) at page 79 Since the cost of machinery purchased by Anjaneya Printers Pvt Ltd is shown as ₹ 20,16,000/- has been included in item 294 of Annexure II in Vol No.1 page 113, the said amount has to be excluded here and only ₹ 64,05,000/- (shares purchased by A-2 ) is to be considered. Hence the value of ₹ 20,16,000/- is to be excluded. Ex.D-236, Ex.D237 ExD-238, Pg. 121, 122 123 of Vol. 153 Ex-D-276 Page 117 Vol No.156 and Ex-P-1519 (bank statement), Pg. 263-276 of Vol. 61 (CA No.2196 - CB) Ex-P-2088 (Vol No.64, page 265) DW-89 (Vol No.92, Page 177 - 187) @ page 185 DW 88 (Page No. 127 of Vol No.9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of ₹ 3,35,000/- denied) In the income tax returns of the vendors in Ex-C2 itself shows that the sale consideration was only ₹ 235200/-. His income tax returns belies his oral evidence of receipt of cash. Hence the value of ₹ 3,35,000/- is to be excluded. Though our case is accepted no deduction was given to the tune of ₹ 3,35,000/- ref page 1837 of Vol VII; Page No.1654 of Vol No. VII Page No.97 8 of Vol No.IV 72 Actual consideration paid to Tmt. Gayathri Chandran W/o K.T. Chandaravadanam, 22, Bazullah Road Chennai -17 By DD ₹ 530400/- and by cash ₹ 335000/- on 8/3/1994 (Owned by Green Farm House) 8,65,400 Ex.P-44 - Sale agreement (Vol No.14, page124- 128, @ page 126) PW-I6 (Vol No. 2,Pg.84 - 92) at page 86 5,30,400 (Cash payment of ₹ 3,35,000/- denied). No evidence to show cash payment Hence the value of ₹ 3,35,000/- is to be excluded. Deduction was given to the tune of ₹ 3,35,000/- ref page 1837 of Vol VII; Page No.1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 ₹ 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 ₹ 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 @ ₹ 3/- per share owned and relating to A-2 to A-4 - ₹ 10,80,000/- Balance = ₹ 7,62,000/- which needs to be excluded. Payments made through bank statement of A-2 to A-4 are E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Evidence and Exhibits relied upon by Accused No.2. Trial Court findings High court findings Exhibits PW's Exhibits DW's 169 169 40,197 These items 168 and 169 are required to be deleted from Annexure-IL Only the value of the items S.No.34 to 48 are to be retained and item No. 168 169 amounting to ₹ 80,394/- is to be deleted from Annexure II. 173 Expenditure towards acquisition of Indo-Doha Chemicals and Pharmaceuticals Ltd at Cuddalore (I) Tr. Ayyadurai promotor of Indo Doha Pharmaceuticals ₹ 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 ₹ 5,00,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The property was purchased with building and no new construction has been carried out during check period. Hence the whole amount of ₹ 1,25,90,261 is to be excluded. Ex.D-251 (Pg. 3 to 9, Vol.- 156) to Ex.D-257 (Pg. 19 to 20, Vol - 156) Ex-D-254 (Page No.14 15, Vol No.156) NOT CONSIDERED DW-83 (Vol No. 92, pg. 2335) DW-93 (Vol No. 92 Pg. 212- 217) DW-95 Vol. No.92-Page 224 DISCARDS EXHIBITS IN PG 1695 OF VOL NO.V11 Para 78.2, pg. 1689-1696 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 to 889 of Vol. No . IV 177 . New/additional construction Building at door No.48 Jawharlal Nehru Road, Industrial Estate Guindy Ekkatuthangal Chennai (Shastry Nuts Plates) 2,13,63,457 Ex.P-663 (Vol.No 34 pg 88-104) and Ex-P- 41 (MOU) (Vol. No. 14, pg. 107 - 112) PW-107, Vol. 4, Pg. 217-253) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the posh Bangalow at Siruthavur in Chengai Mgr Dist 5,40,52,298 Ex.P-66I (Vol. No. 34, pg. 1- 30) PW-I07 (Vol. No. 4, pg. 217 -253) PW-220 (Vol. No.10, pg. 132 , 161) at page 133 (Amount to be accepted is ₹ 1,25,06,305/-) and hence balance of ₹ 4,15,45,993/- is to be excluded Ex.D-306 (Pg. 122-168, Vol. 157) DW-95 (Vol. No. 92, pg. 223- 230) DW-83 (Vol. No. 92, Pg . 25-35) Para 78.6, Pg. 1707-1709 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. PW107 evidence is unreliable. Page No. 866 to 889 of Vol. No.IV 183 New additional construction in Building at sea shell avenue No.2/1 - B -3 apartment Sholinganallore Saidapet Taluk (J Farm House) 80,36,868 Ex-P-669 (Vol. No. 34, pg. 181-230 ) PW-116 (Vol No. 5, pg 34-85) at page 39 Without pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Vol. No. 5, Pg. 34- 85) at page 36 Without prejudice : (Amount spent for construction to be accepted is ₹ 19,05,868/-) and hence balance of ₹ 1,37,132/- to be excluded Ex.D-277 (Pg. 118-129 at page 128, Vol. 156) Value of property including land value is ₹ 3502018/- NOT CONSIDERED DW-79 (Pg. 222-237, Vol. No. 91, at page 224) DW-88 (Pg. 105176, Vol.No. 92 at page 127) Para 78.11, Pg. 1727-1729 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 to 889 of Vol. No. IV 186 New Additional construction in residential building at No.1/66 Anna Nagar Chennai Item No.24 of Annexure II, page 45 of Vol. No.1 24,83,759 Ex.P-641 (Vol.No. 33, pg. 3-17) PW-98 (Vol. No. 4, Pg. 148-179 at page 148, 149 150) Value to be considered is ₹ 13,85,361/-. . Hence the sum of Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... PW-116 (Vol. No. 5, pg. 34- 85 at page 37) Without prejudice : (Amount to be accepted is ₹ 29,82392/-) a nd h en c e b a la n c e o f ₹ 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 ₹ 13,31,185/-) and hence balance of ₹ 7,07,774 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ex-P-674 (Vol. No 35, pg. 172-225) PW-I17 (Vol. No.5, pg. 86117, at page 102, 109 110) Without prejudice : (Amount to be accepted is ₹ 4,76,525/-) and hence balance of ₹ 9,41,013/- to be excluded Ex.D-272 (Vol. 156, Pg. 103- 112, at page 108,) NOT CONSIDERED DW-88 (Pg. 105- 176, Vol. No. 92, at page 108) DW-75 (Vol. No.9I, Pg. 180-191, at page 183 184) Para 78.17, Pg. 1735 - 1736 of Vol. VII. Trial Court agrees with the contention of th e acc use d tha t 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 242 TSR 333 Swaraj Mazda Van 2,99,845 Shown in Annexure - I, Item 22 (Acquired prior to check period. Hence whole amount of ₹ 2,99,845/-is to be excluded) 249 (TN-01-0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... JP D-220 - IT Return (Pg. 79-97, at page 94 Vol No. 114) NOT CONSIDERED DW-88 ( Vol No.92, page Nos 105-176, at page 108) NOT CONSIDERE D Para 83- 83.14, Pg. 1807 - 1816 of Vol. VII - discussion findings. Page No.979 of Vol. No.IV 257 TN 09 B 6975(Bajaj Tempo van) (Metal King) 2,03,979 Ex-P-241 (Vol. No. 25, pg. 39-40) Ex-P-287 (Vol.No. 25, pg. 114) PW-59 (Vol. No.3, pg.57-61, at page 58) PW-69 (Vol. No.3, pg. 100-107, at page 103) As per Ex.P-241, The vehicle vas purchased by AIADMK on 18.4.1991 prior to check period. The said vehicle was purchased as second hand by Metal King. Vehicle not transferred as alleged by prosecution hence not justified full amount of ₹ 203,979/- is to be excluded. Para 83- 83.14, Pg. 1807 - 1816 of Vol. VII - discussion findings. Page No.979 of Vol. No.IV 1. Vehicle valuation :- Proved by Accused ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 287 . 34 items of Jewels purporting to be of Tmt. Sasikala as evaluated by M/s. VBC Trust on 16-1- 1992 17,54,868 Ex-P-1016 (Vol. No. 57, pg. 186-188) Ex-P-2208 (Vol. No. 69, pg. 164-187), Ex-P-2209 (Vol. No. 69, pg. 188-189) PW-l79 (Vol. No. 7, pg. 253- 272) Acquired prior to check period Hence the whole amount of ₹ 17,54,868/- is to be excluded. Para 79, Pg. 17561785 of Vol. VII. Page No.979 of Vol. No.IV 293 Machinery subsequently purchased for M/s. Metal King 7,69,000 Ex-P-665 (Vol. No. 34, pg. 111-112) PW-115 (Vol. No. 5, Pg. 18-33 (He mentioned it as Scrap Value) also at Pg. 26 of Vol. 5. Machineries are stated to be as scrap (no value for the same). Hence the whole amount of ₹ 7,69,000/- is to be excluded. Para 84, Pg. 18161823 of Vol. VII. Page No.979 of Vol. No.IV 294 (Part of item No.33) Machinery subsequently purchase ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ₹ 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 construction is liable to be rejected in its entirety. Trial Court puts at ₹ 39,34,000/- at page 1736 Vol. No.VII Page No.866 to 889 of Vol. No. IV TOTAL 13,11,0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h 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 ₹ 38,51,000/-. In the absence of any evidence of any payment of ₹ 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 ₹ 10 Lakhs only has been paid to the outgoing partners. It is submitted that the Trial Court added the whole amount of ₹ 38,51,000/- as assets of the accused. Although A3 admits only a sum of ₹ 10 Lakhs under this item, the balance of ₹ 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 ₹ 64,05,000/-against all the shares and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and others to A2, A3 and A4, it is submitted that A2, A3 and A4 did not have shares valued at ₹ 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 ₹ 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 ₹ 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 ₹ 3,49,683/- as per DVAC and the very same items were sold by A2 to Meadow Agro Pvt. Ltd. for ₹ 2,90,000/- and the same are shown again as Items No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mprovement or additional construction was made after purchase. However, the prosecution 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 ₹ 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 Anja ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. 111. With regard to the disputed item being Srl. No.184 of Annexure-II, relating to New Additional Construction 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 ₹ 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 ₹ 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 ₹ 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 ₹ 19,05,568/- was proved b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt. Hence, he submitted that the Trial Court did not correctly assess the evidence and the documents placed before it and according to him the inflated part of the amounts should 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 ₹ 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 ₹ 24,99,005/-. It is further contended that the two loans of ₹ 15,00,000/- and ₹ 45,00,000/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad sold her properties during the check period to M/s. Meadow Agro Farms and an amount of ₹ 2,90,000/- was received by her as sale consideration. The Trial Court did not give any credit to the said amount as the income of A2. It is further submitted that the cash in hand with A2 being ₹ 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 ₹ 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 ₹ 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 ₹ 75 lakhs on 29 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /- as is borne out by the income tax returns accepted by the Income Tax authorities. According to him, the said amount should have been added in the income of Jaya Publications, but the Trial Court rejected the same mainly on the ground that the supporting documents relied upon were Income Tax proceedings. 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 ₹ 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 ₹ 25 lakhs from M/s. Housing Real Estate and Development (P) Ltd. during the financial year 1995-1996 which was a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... According to him this item cannot be taken as an additional item in the Expenditure Column in Annexure-IV. According to him the prosecution is trying to mislead the Court as on the one hand, it does not show that the net profit of Jaya Publications is derived after debiting the interest amount and on the other, it is showing the payment of interest as an item of expenditure, thereby subjecting the accused to double jeopardy. 129. Similarly, he tried to explain the expenditure of ₹ 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 ₹ 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 ₹ 24,25,685/- and the net profit for the said period came to ₹ 53,50,215 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riage expenses, it as well wrongly totalled the income derived from loans and thereby on an apparent erroneous application of the formula to work out the percentage of disproportionate assets, accorded the benefit of Krishnanand Agnihotri (supra) to the respondents and acquitted them of the charges. Apart from the fact that the High Court having accepted ₹ 66,44,73,573/- as 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, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat having regard to the stringent predication of the law on corruption and the proof of the charges against the respondents beyond all reasonable doubt, their conviction as recorded by the Trial Court ought to be restored in toto. 132. Mr. Acharya, Special Public Prosecutor for the State of Karnataka while conveying his general endorsement of the above referred submissions, elaborated 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 ₹ 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 orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, the respondents, by no means could have been extended the benefit of the decision in Krishnanand Agnihotri (supra). 133. Dr. Subramaniam Swami, in supplementation has argued that in the teeth of a new legal regime ushered in by the 1988 Act ordaining an uncompromising stand point in re a charge of corruption more particularly in public life, the High Court did grossly err in acquitting the 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cution to call in evidence, in support of the charge of disproportionate assets on the basis of the sources of income known to it, no burden in this case did shift on A1 on any point of time, as such prerequisites remained uncomplied. The learned senior counsel dismissed the evidence with regard to benami transactions stemming from the imputation that the properties of A1 have been allegedly purchased/held in the name of A2, 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 inp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat in absence of any evidence to prove cash-flow from A1 to the co-accused or the firms and companies involved, the substratum of the charge had been rendered non est. According to him, the Trial Court had gone conspicuously wrong in ignoring the income tax records and in overlooking the fact that even prior to the check period, A2 had been in business and had filed her income tax and wealth tax returns. That all the six firms/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 A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n was enacted. 139. Apart from providing the definition of the expression public servant , as contained in Section 21 of the Indian Penal Code, by Section 3, the offence punishable under Section 165A of the said Code was construed to be a cognizable offence for the purposes of the then Code of Criminal Procedure, 1898. Section 14 lodged the presumption where a public servant was found to accept or agreeable or attempting to accept/obtain 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal Code, dealing with public servants and those who abet the offences mentioned therein, by way of criminal misconduct. The provisions in the Criminal Law Amendment Ordinance, 1944 enabling attachment of ill gotten wealth, obtained through corrupt means, was also adverted to. The Bill was clearly contemplated to incorporate all these provisions with necessary modifications, so as to make those more effective in combating corruption amongst public servants. With that 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) an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e disproportionate thereto, is, thus the indispensable legislative edict. 149. Section 22 of the Act also makes the provisions of the Code of Criminal Procedure, 1973 applicable to a proceeding in relation to an offence punishable thereunder, subject to certain modifications as mentioned therein. Here as well, the applicability of Section 452 of the Code otherwise empowering a criminal court to order for disposal of the property at the conclusion of the trial before it, has not been excluded. 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 . Sig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ict Judge under the Ordinance. Sections 7 to 12 of the Act correspond to Section 161 to 165A of the Indian Penal Code, thereby integrating the offences in the legislation to be tried by a special forum as envisaged. Resultantly, Sections 161 to 165A have been effaced from the Indian Penal Code for obvious reasons. Explanation to Section 13(i)(e) makes it limpid that the known sources of income of the public servant, to satisfactorily account the pecuniary resources or the property otherwise alleged to be disproportionate 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o suggest that two or more persons have conspired, then anything done by one of them in reference to their common intention becomes relevant in proving the conspiracy and the offences committed pursuant thereto. (Emphasis supplied) 156. In Saju Vs. State of Kerala (supra), it was propounded that to attract Section 120B IPC, it is to be proved that all the accused had the intention and they had agreed to commit the crime. It was assumed that conspiracy is hatched in private and in secrecy, for which direct evidence would not be readily 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, some ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... performance or by abandonment or frustration or however, it may be the actus reus in a conspiracy is the agreement to execute the illegal conduct, not the execution of it. It is not enough that two or more persons pursued the same unlawful object at the same time or at the same place. It is necessary to show the meeting of minds to a consensus to effect an unlawful purpose. It is not, however, necessary that each conspirator should have been in communication with each other. 160. Reference was made to Regina Vs. Murphy , (1837) 173 ER 502 where Coleridge J, was 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ime. Each conspirator plays his separate part in one integrated and united effort to achieve the common purpose. Each one is aware that he has a part to play in a general conspiracy though he may not know all its secrets or means by which the common purpose is to be accomplished. On the touchstone of the above adumbrated legal postulations, the evidence on records would have to be assayed to derive the deduction as logically permissible. (Emphasis supplied) Approach of Court in PC Cases 166. Qua the required orientation of a Court vis-a-vis offences under the Act, it has been inter alia emphatically observed 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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Probative worth of Income Tax Proceedings qua lawfulness of the source of income 171. The respondent in Commissioner of Income Tax, U.P. Vs. Devi Prasad Vishwanath Prasad, (1969) ITR 194 was a firm dealing in handloom cloth and silk fabrics. In the proceeding for the assessment year 1946-47, the income tax officer, amongst others, found a credit of ₹ 20000/- in its books of accounts as a deposit in the name of M/s. Banshidhar Rawatmal of Ratangarh. After considering the evidence procured by the assessee, the Income Tax Officer rejected the plea that the amount had been deposited by the above firm and concluded that it was the assessee's income 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 ₹ 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 expos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income cannot automatically be adopted as a finding to that effect in the penalty proceedings. In the penalty proceedings, the taxing authority was bound to consider the matter afresh on the materials before it, to ascertain that whether a particular amount is a revenue receipt. It was observed that no doubt the fact that the assessment year contains a finding that the disputed amount represents income constitutes good evidence in the penalty proceedings, but the finding in the assessment proceedings cannot be regarded as conclusive for the purpose of penalty proceedings. Before a penalty can be imposed, the entirety of the circumstances must be taken into account and must lead to the conclusion 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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Marwah Anr. Vs. Meenakshi Marwah Anr. , (2005) 4 SCC 370, in this context had ruled that there is neither any statutory provision nor any legal principle that the findings recorded in one proceeding may be treated as final or binding on the other as both the cases have to be decided on the basis of the evidence adduced therein. 178. In CIT Patiala Vs. Piara Singh , 1980 Supp. SCC 166, the respondent was apprehended while crossing the Indo Pakistan Border and a sum of ₹ 65,500/- was recovered. He revealed at the interrogation, that he was taking the currency notes to Pakistan for purchase of gold to smuggle it into India. The currency notes were confiscated. In the income tax assessment proceedings of the respondent, the I.T.O., held that out of ₹ 65,500/- an amount of ₹ 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 ₹ 65,500/- as loss incurred in the business due to the confiscation thereof. His claim was upheld. It was ruled th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of ₹ 3,40,443/- in certain transactions and pleaded that the above loss was allowable under Section 10(1) of the Income Tax Act, 1922 as a deduction against its other business income. The Income Tax Officer was of the view that the transactions in question were hit by the provisions of the Forward Contracts Regulation Act, 1852 and the Rules and Regulations of the Saurashtra Oil and Oilseeds Association Ltd. The losses were thus held to have been incurred in illegal transactions and the Income Tax Officer, thus rejected the contention of the assessee that even on the assumption that the losses were incurred in illegal transactions, they would be allowed in the computation of the income. The appellate Assistant Commissioner confirmed the order of the Income 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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecting Union of India to take appropriate action to prosecute R2 to R5 under the 1988 Act for having amassed assets disproportionate to the known sources of income by misusing their power and authority. The respondents were the then sitting Chief Minister of U.P. and his relatives. Having noticed that the basic issue was with regard to alleged investments and sources of such investments, the respondents 2 to 5 were ordered by this Court to file copies of income tax and wealth tax returns of the relevant assessment years which was done. It was pointed out on behalf of the petitioner that the net assets of the family though was ₹ 9,22,72,000/-, as per the calculation made by the official valuer, the then value of the net assets came to be ₹ 24 crores. It was pleaded on behalf 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 carefull ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /investigation to track down the corrupt public servants. Section 6A of the DSPE Act and Section 26 (c) of the CBC Act struck down. 187. In Niranjan Hemchandra Sashittal (supra), this Court, apart from elucidating the objective of the 1988 Act ruled that the gravity of the offence thereunder is not to be judged on the measure of quantum of obribe, as corruption is not to be justified in degree. A serious concern was expressed noticing the permeating presence of the malady in the contemporary existence, so much so, that immoral acquisition of wealth visibly has the potential to destroy the morale of the people believing in honesty, destroying societal will to progress, aside corroding the sense of civility and enervating the marrows of governance. LIFTING OF CORPORATE VEIL OF THE COMPANY 188. In Aron Salomon (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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll draw aside the web of entity, will regard the corporate company as an association of live, up-and-doing, men and women shareholders, and will do justice between real persons. . 191. It was finally held that the concept of corporate entity was evolved to encourage and promote trade and commerce and not to commit illegalities or to defraud people and thus when the corporate character is employed for the purpose of committing illegality or for defrauding others, the Court ought to ignore the corporate character and scan the reality behind the corporate veil so as to enable it to pass appropriate orders to do justice between the parties. 192. In State of Rajasthan Ors. Vs. Gotan Lime Stone Khanji Udyog Private Limited Anr. , (2016) 4 SCC 469, it has propounded that the principle of lifting the corporate veil was well recognized not only to unravel tax evasion 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 wher ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ati Dayal Vs. Commissioner of Income Tax, Bangalore , (1995) Suppl. 2 SCC 453 to the effect that in all cases where a receipt is sought to be taxed as income, the burden lies on the department to prove that it is within the taxing provision and that if the receipt is in the nature of income, the burden of proving that it is not taxable because it falls within the exemption provided by the Income Tax Act lay upon the assessee. This Court in the textual facts upheld the finding of the Assessing Officer, and most importantly underlined that though the money involved had come by way of bank cheques and paid through the process of banking transaction, the same per se were of no consequence. (emphasis supplied) 195. The decision highlights two aspects, firstly if the Assessing Officer on the consideration of the materials sought for is not satisfied with the explanation provided by the assessee 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 deter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax Authorities construed to be income from undisclosed sources and is subjected to income tax, it would not for the purposes of a charge under Section 13(1)(e) of the Act be sufficient to hold that it was from a lawful source in absence of any independent and satisfactory evidence to that effect. 199. In Sumati Dayal (supra), the subject matter of scrutiny was receipts by the assessee claimed to be from her winnings in races and the explanation in support thereof. This court held that it is no doubt true that in all cases where the receipt is sought to be taxed as income, the burden lies on the Department to prove that it is within the relevant provision and if a receipt is in the nature of income, the burden of proof that it is not taxable but it falls within the exemption provided by the Income Tax Act lies on the assessee. But in view of Section 68 of the Act, where any sum is found credited in the books of the assessee for any 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such valuable thing. While observing that the ambit of Section 165 is wider than that of Sections 161, 162 and 163 IPC and is intended to cover cases of corruption which do not come within the sweep of the latter provisions, it was emphatically proclaimed that if public servants are allowed to accept presents when they are prohibited in law, they would easily circumvent the prohibition by accepting the bribe in the shape of a present. It was underscored that the provisions under Sections 161 and 165 IPC as well as the Section 5 of the Act 1947 were intended to keep the public servant free from corruption and thus ultimately to ensure purity in public life. 202. It is worthwhile to recall that with the advent of the Act 1988, Sections 161 to 165A have been omitted from the Code as those have been essentially engrafted in the said Statute and thus the essence and spirit thereof seemingly have a bearing on the constituents of Section 13 of the Act. This, in our 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 Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ical system of justice will then break down and lose credibility with the community. The evil of acquitting a guilty person light heartedly as a learned author (Glanville Williams in 'Proof of Guilt') has sapiently observed, goes much beyond the simple fact that just one guilty person has gone unpunished. If unmerited acquittals become general, they tend to lead to a cynical disregard of the law, and this in turn leads to a public demand for harsher legal presumptions against indicated 'persons' and more severe punishment of those who are found guilty. . (emphasis supplied) 205. In Collector of Customs, Madras Ors. Vs. D. Bhoormall , (1974) 2 SCC 544, this Court had observed that in all human affairs, absolute certainty is a myth and the law does not require the prosecution to prove the impossible. It was highlighted that all that was required is the establishment of such a degree of probability that a prudent man may on this basis believe in the existence of the fact in issue. 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 pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eeding may be treated as final or binding in other as both the cases have to be decided on the basis of the evidence adduced therein. Interpretation of the expression satisfactorily account in the context of the offence of misconduct under Section 5(1)(e) of Act of 1947 and Section 13 (1)(e) of Act 1988 211. This Court in C.S.D. Swami Vs. The State , (supra), was dealing with an appeal from a conviction under Sections 5(1)(a) and 5(1)(d) of Act 1947. In the textual facts this Court while examining the purport of Section 5(3) of Act 1947 observed that the said provision did not create a new offence but only laid down a rule of evidence, enabling the Court to raise a presumption of guilt in certain circumstances a rule which was in complete departure from the established principles of criminal jurisprudence that the burden always lay on the prosecution to prove all the ingredients of the offence charged and that the burden never shifted on to the accused to disprove the charge framed against him. In this premise, it was held that the test of plausible explanation was inapplicable, as under this statute, the accused person was required to satisfactorily account fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asis supplied) 213. The same view was reiterated, amongst others in State of Maharashtra Vs. Wasudeo Ramchandra Kaidalwar , (supra), dealing in specific terms with Section 5(1)(e) of 1947 Act. The evident dispensation of this pronouncement is that the spirit of the enactment has to be acknowledged as a relevant factor to construe an offence alleged to have been committed there under. While dilating on the expressions the public servant cannot satisfactorily account and known sources of income , which was construed to mean sources known to the prosecution , this Court held the view that the plea that unless the prosecution disproves all possible sources of income, a public servant charged for having disproportionate assets in his possession, which he cannot satisfactorily account, cannot be convicted under Section 5(1)(e) of the Act was erroneous. It was enunciated that the possible sources of income beyond those known to the prosecution were matters within the special knowledge of the public servant within the meaning of Section 106 of the Evidence Act, 1872. It was, however, recognized that the burden of the accused was not so onerous as that of the prosecution and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y receipt would not partake the character of income. Qua the public servant, whatever return he gets from his service, will be the primary item of his income. Other incomes, which conceivably are income qua the public servant, will be in the regular receipt from (a) his property, or (b) his investment. A receipt from windfall, or gains of graft, crime or immoral secretions by persons prima facie would not be receipt from the known sources of income of a public servant. (emphasis supplied) 217. It was emphasised that the word satisfactorily did levy 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 the explanation was worthy of acceptance. The noticeable feature of this pronouncement thus is that the explanation offered by the accused to be acceptable has to be one not only plausible in nature and content but also worthy of acceptance. 218. In P. Nallammal Anr. Vs. State , (supra), this Court while elucidating that the 1988 Act does contemplate abetment of an offence under Section 13, proclaimed that in terms of the explanation to Section 13(1)(e) of 1988 Act, the known sou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ary. It was stressed upon that the public servant concerned was required to prove the source of income or the means by which he had acquired the assets. It was propounded that once the prosecution proved that the public servant possessed assets dis-proportionate to his known sources of income, the offence of criminal conduct was attributed to him but it would be open to him to satisfactorily account for such dis-proportionality. 220. In V. D. Jhingan Vs. State of Uttar Pradesh (supra), it was expounded that when a statute places burden of proof on an accused person, it is not that he is not required to establish his plea, but a decree and character of proof which the accused was expected to furnish could not be equated with those expected from the prosecution. 221. In N. Ramakrishnaiah (dead) through LRs. Vs. State of Andhra Pradesh , (2008) 17 SCC 83, charge-sheet was submitted against the petitioner (since dead) under Section 5(1)(e) and 5(2) of the Act 1947 on the allegation of acquiring disproportionate assets compared to his known sources of income and he was convicted by the Trial Court. In the appeal before the High Court, the dispute was restricted only t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... context, it recalled the enunciation in Arunachalam Vs. P.S.R. Sadhanantham Anr. , (1979) 2 SCC 297, that in dealing with an appeal against acquittal, the Court would keep in mind that the presumption of innocence in favour of the accused is reinforced by the judgment of acquittal. It, however, noted as well the caveat that in such an eventuality also, the Court would not abjure its duty to prevent miscarriage of justice by hesitating to interfere where interference is imperative. It was stated that where the acquittal is based on irrelevant ground, or where the High Court allows itself to be deflected by red herrings drawn across the track, or by the evidence accepted by the Trial Court but rejected by the High Court after perfunctory consideration or where the baneful approach of the High Court has resulted in vital and crucial evidence being ignored or for any such adequate reasons, the Court would feel obliged to step in to secure the interest of justice, to appease the judicial conscience as it were. (emphasis supplied) 223. That this Court ought to rarely interfere and only where there is a grave error of law or serious miscarriage of justice or the judgment of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar evidence cannot be doubted, interference would be warranted. 227. In Mst. Dalbir Kaur Ors. Vs. State of Punjab , (1976) 4 SCC 158, this Court ruled that the Supreme Court is not an ordinary court of criminal appeal and does not interfere with pure questions of fact. It is only in very special cases where it is satisfied that the High Court has committed an error of law or procedure as a result of which there has been a serious miscarriage of justice, that it would intervene. It is generally not in the province of this Court to reappraise the evidence and go into the question of credibility of the witnesses unless the assessment of evidence by the High Court is vitiated by an error of law or procedure, by the principles of natural justice, by errors of record or misleading of evidence, nonconsideration of glaring inconsistencies in the evidence which demolish the prosecution case or where the conclusions are manifestly perverse and unsupportable. In other words, substantial and grave injustice ought to be visible, warranting a review of the decision appealed against. Something substantial has to exist to persuade the Court to go behind the findings of facts. It underl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ainst the dangers of exaggerated devotion to the rule of benefit of doubt at the expense of social defence and to the soothing sentiment that all acquittals are always good regardless of the justice to the victim and the community. The decision also adverted to the rendition in K. Gopal Reddy Vs. State of Andhra Pradesh , (1979) 1 SCC 355, to the effect that if two reasonably probable and evenly balanced views on the evidence are possible, one must necessarily concede the existence of a reasonable doubt but remote and fanciful possibilities must be left out of account. It was reiterated that in order to entitle an accused person to the benefit of doubt arising from the possibility of duality of views, the possible view in his favour, must be as reasonably probable as that against him. (emphasis supplied) 231. In Ramaiah @ Rama Vs. State of Kanataka , (2014) 9 SCC 365, this Court, while dwelling on the same theme quoted its observation in Harbans Singh Anr. Vs. State of Punjab , AIR 1962 SC 439, to the effect that in the recent years, emphasis on compelling reasons has often been avoided but nonetheless the emphasis on the requirement of close and careful ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... money came; (2) The nature of possession of the property, after the purchase; (3) Notice, if any, for giving the transaction a benami colour; (4) The position of the parties and the relationship, if any, between the claimant and the alleged benamdar; (5) The custody of the title-deeds after the sale and (6) The conduct of the parties concerned in dealing with the property after the sale. 233. That the above indicia are not exhaustive and their efficacy varies according to the facts of each case was however underlined. The emphasis of the decision on benami purchase, therefore, is that there has to be either some direct evidence or strong circumstantial evidence to raise an inference that the property alleged to be benami had been purchased with the funds/resources of someone other than the person in whose name the property is shown in the document. 234. In the present case, there is also a charge of conspiracy and abetment and, therefore, the factors as above would have to be tested on the anvil of the overall circumstances to ascertain as to whether a reasonable inference therefrom can be drawn of a benami transaction as alleged. This is more so as by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... BSTANTIVE EVIDENCE. 236. In Pawan Kumar Vs. State of Haryana , (2003) 11 SCC 241, this Court had observed that hearsay evidence could be used to corroborate substantive evidence. Krishnanand Agnihotri (supra), In this case the petitioner was convicted by the Trial Court as well as the High Court by acting on the presumption contained in Section 5(3) of the Act, 1947 (prior to the amendment of 1964, as it was) for the offence punishable under Section 5(2). The plea of the petitioner was that the charges levelled against him under Section 5(1) had not been established and, therefore, the presumption was not available. 237. The facts revealed that the admitted income was ₹ 1,12,515.43 during the check period 29.11.1949 to 1.1.1962. Various heads of income were in dispute and this Court examined the evidence adduced by the parties under those heads and after disallowing/allowing different amounts, reached the figure of ₹ 1,27,715.43/- as the income. Vis-a-vis the expenditure also, the admitted figure was ₹ 23,459.84 and the parties were at issue on various heads. Similarly, this Court analysed the evidence adduced by the parties and after allo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for scrutiny: (1) Income (2) Expenditure (3) Assets (4) Conspiracy and abetment. From the evidence led and the arguments advanced, it appears that the income, expenditure and assets, all have been cumulatively taken account of. Though it had been argued on behalf of A1 that she had no connection whatsoever with A2, A3 and A4 and, therefore the figures relating to income, expenditure and assets would have to be separately considered, it would transpire that while adverting to the charts submitted in the course of arguments, such segregation has not been insisted upon and is even uncalled for, having regard to the charge of conspiracy and abetment, for the purpose of the appraisal to follow. INCOME 241. Under the head income, the prosecution has limited its tally to 64 items, which the respondents do not dispute but they have added seven further heads thereto. According to the prosecution, the income of the 64 heads is ₹ 9,34,26,053.56, which the Trial Court on a consideration of the evidence has found to be ₹ 9,91,05,094.75. 242. The High Court, however, accepted the respondents' claim of income under seven additional heads and raise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding and those by themselves do not prove the amount of income or the lawful source thereof. 246. The relevant evidence of the prosecution on this component is traceable to PW165 K.R. Latha Horticulture Officer in the office of the Assistant Director (Horticulture), Rangareddy District, A.P. PW166 P. Kondareddy, Assistant Director of Horticulture and PW256 Mr. R. Kadireshan, Dy. Superintendent of Police, Vigilance Department Anti Corruption, Chennai. PW 165 has deposed that as per the direction of Assistant Director of Horticulture on 10.12.1996, she had visited the grape garden belonging to A1 along with the Horticulture Officer Sanjay Kumar in presence of PW256. She inspected the horticulture crops and examined the varieties of grapes raised as well as the plants and the area covered. 247. PW-166 corroborated the testimony of PW-165. She also visited the grape garden and had worked out the details regarding the cost of raising the grapes and the gross and net income and submitted his report (Ex. P-938). The Assistant Director of Horticulture claimed to be competent to assess the basis of cost for raising various crops including grapes and mentioned the tota ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ral income of A1 at ₹ 9,50,000 as furnished by her. The same approach was adopted by the concerned authorities/forums for the assessment years 1995-96 and 1996-97 and same reasons had been cited. 250. A1 thus claimed agricultural income of ₹ 52,50,000 during the check period, on the basis of the above returns/orders of the income tax authorities/forums. The Trial Court duly evaluated the evidence adduced by the prosecution as well as by the defence in this regard in detail and concluded that the two versions were irreconcilable. It did not accept the evidence adduced by the prosecution in absence of the notes of inspection endorsing the report Ex. P- 938. It also noticed the flaws in the evidence of PWs 165, 166 and 256 which revealed that the inspection of the grape garden had been made without reference to any revenue or survey records and that there was no clear and definite evidence regarding the specific extent of land used for the cultivation of grapes and other crops. It doubted the basis on which the yield had been determined and the price calculated by the inspecting team and, therefore held that the report was unreliable. 251. The evidence of A1 was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... final and binding on a criminal court, and at best only are relevant and always subject to its independent appraisal on merits. 254. It has been urged on behalf of R1/A1 that her claim of income of ₹ 52,50,000/- under this head stands proved wholly on the basis of the relevant income tax returns and the orders passed thereon. Oral evidence of DW-64 and the documentary evidence by way of D-61 to D-64 have been relied upon. As observed hereinabove, the High Court had readily accepted this evidence and had thereby enhanced the income of A1 under this head to ₹ 52,50,000/- by adding ₹ 46,71,600/- to the sum of ₹ 5,78,340/- mentioned by the DVAC. In absence of any independent evidence in support of this claim, having regard to the state of law that income tax returns/orders are not automatically binding on a criminal court, in our view, the effortless acceptance thereof by the High Court is in disregard to this settled legal proposition. Thereby the High Court has accorded unassailable primacy to such income tax returns/orders and have made those final and binding on the criminal court without any appreciation of the probative potential thereof. 255. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 30.4.1996 and cannot be accounted for. The Trial Court did take note of this aspect in its judgment while dealing with these items of loan on the basis of the evidence adduced, more particularly while dealing with the heads of expenditure. In that view of the matter, the High Court was in error in including this item of loan in the income of the respondents. Indian Bank - Agricultural Loan - ₹ 3,75,00,000: 260. This corresponds to item No. 8 of the Heads of Income vide Exb. P-2329 as cited by the DVAC. The oral evidence to this effect has been adduced by PW 182 who has proved Exb. P-1101. The Trial Court dealt with the evidence both oral and documentary in this regard and by referring to the letter Exb. P-1001, addressed to the bank by the applicant for the loan thereof, had concluded that the liability to liquidate the loan had been taken over by A2 to A4. The evidence on record, thus, demonstrates that the Trial Court had taken note of this item of loan and, therefore the High Court ought not to have added this figure by way of duplication. Indian Bank A1 ₹ 90,00,000/- 261. As would be apparent from the evidence of PW 182 who proved E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt has considered the evidence, oral and documentary, to this effect. The addition of a further amount of ₹ 50 lakhs by the High Court to the corpus of income of the respondents, therefore, is clearly erroneous. Indian Bank Ms. Sasikala ₹ 25,00,000/-: 266. This corresponds to item No. 1 of the items of income cited by the DVAC and in fact had been availed by Sasi Enterprise, as has been deposed by PW 182 through Ex. P- 1260. The amount due and outstanding to the bank, at the relevant point of time, was ₹ 13,55,023/-. The Trial Court noted that the application for loan had been made by Ms. Sasikala as the Managing Partner of the firm and had examined the relevant evidence including the statement of account pertaining to the loan. This head of income thus had been taken note by the Trial Court and, therefore the High Court was not justified to add a further sum of ₹ 25 lakhs thereunder. Indian Bank Mr. Sudhakaran - ₹ 1,57,00,000/-: 267. This corresponds to item No. 7 of the heads of income cited by the DVAC and has been proved by PW 182 through Ex P-1330. The Trial Court has examined the evidence relating to this loan appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Court has considered the evidence, oral and documentary, to this effect and thus had accounted for this component while quantifying the total income of the respondents. In this premise, the High Court was not right in adding the entire sum of ₹ 17,85,274/-, as if the same had escaped the notice of DVAC or the Trial Court. 271. As the impugned judgment of the High Court would reveal, it referred to generally the testimony of PW 182 and PW 259 and had observed that the respondents had borrowed loans from the banks as well as from the private parties which however have not been taken into consideration. While noting the loans availed by the respondents from different firms and companies, as named therein, the High Court did, however limit itself only to the loans borrowed from the nationalised banks, as referred to hereinabove, but wrongly totalled the amounts to inflate figure to ₹ 24,17,31,274/- which in fact ought to have been ₹ 10,67,31,224/- on a correct arithmetic. The High Court, thereafter, adjusting ₹ 5,99,85,274/-, i.e. the income quantified by the DVAC added ₹ 18,17,46,000/- (Rs.24,17,31,274 ₹ 5,99,85,274) to the income of the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the fund of the draft has remained obscure. 274. According to the prosecution, the gifts, as claimed by the respondents, do not constitute a lawful source of income under Section 11(1)(e) of the Act and, therefore had not been included by the DVAC in the list of known sources of income. 275. A1 through her letter dated 6.9.1993 claimed receipt of gifts of jewellery, cash, demand draft, silver items, silk sarees, framed portraits etc. on the occasion of her birthday. There is also mention of receipt of similar gifts qua the relevant assessment years 1990-91, 1991-92, etc. In the concerned assessment order dated 21.3.1995, affidavits filed relating to gifts for the assessment years 1990-91, 1991-92, 1992-93 had also been considered. This assessment order would show that a total of ₹ 1,26,32,657/- was taken to be the income against receipt of jewellery, silver articles and cash deposits in the bank. 276. Ex. P-2139 is the income tax return of A1 for the Assessment Year 1991-92 which had been filed on 23.11.1992 and does not mention any gift as income from other sources. However, the assessment order for the assessment year 1992- 93 passed on 21.3.1995 Ex. P-2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by way of cash and drafts amounting to ₹ 2,15,00,012/- and foreign remittance of ₹ 77,52,591/- to A1, who had disclosed the same in her income tax return for the assessment year 1992- 93 filed on 22.11.1992. That the income tax authorities had treated this amount to be an income of A1 from undisclosed sources and had levied tax, which was paid by her, was also noticed by the Trial Court. The evidence of PW-259, the Investigating Officer in his cross-examination that in Tamil Nadu, party workers and ordinary people generally present such gifts on the birthdays of political leaders and that from the witnesses examined, an amount of ₹ 1,94,50,012/- had been received through demand drafts as birthday gift for A1, was also taken on record. Cash receipts by way of gift amounting to ₹ 15 lakhs for the same event, as stated by PW- 259, was also considered. Receipts by way of gifts in the earlier years also did not miss the attention of the Trial Court. It noted as well, the receipt of gift of the substantial amount by way of foreign remittance in American dollars during 1992-93 from the testimony of this witness. 281. The defence evidence and the income tax re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ending, was recorded. 284. That the receipt of money or pecuniary resources in order to qualify as income within the meaning of Section 13(1) (e) of the Act, in case of a public servant should essentially be attached to his/her official post and that any windfall or gain of graft, crime or immoral secretions prima facie would not be a receipt from the known sources of his/her income as held by this Court in State of M.P. Vs. Awadh Kishore Gupta (supra), was noted. The Trial Court was of the view that though the receipt of birthday presents by themselves might not amount to windfall or immoral secretions, the receipt of huge amount of ₹ 2 crores and foreign remittance as presents and gifts, as the Chief Minister of a State, was susceptible to serious doubts and suspicion about the nature of the receipts. The fact that the practice of offering such gifts had been discontinued after 1992 and the possibility of such offerings not being made if A 1 was not in office, was pondered over. The Trial Court discarded the evidence of the party workers and rejected the A1's claim of income from the gifts from a lawful source. The decision of this Court in A.R. Antulay Vs. R.S. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so belated. The explanation provided by A1 in her letters to this effect was taken note of and was not accepted by the Assessment Officer and the CIT (Appeals) also sustained this conclusion. Apart from other aspects, the appellate authority also noticed the unexplained delay in the submission of the income tax as well as wealth tax returns. The observation of the Assessment Officer that the income tax returns did not disclose the presents/gifts received by the assessee during the relevant time, was also noted. The appellate authority was of the view, taking the clue from the decision of this Court in The Commissioner of Expenditure Tax, Andhra Pradesh Vs. P.V.G. Raju , (1976) 1 SCC 241, that politics is a profession and thus the collections in the form of presents/gifts cannot but were receipts from profession and, therefore were to be construed as professional income under Section 28. As would be evident from the order, the income tax authorities did limit their scrutiny only to decide as to whether the receipts by way of presents/gifts were to be treated as income or not for the purposes of Income Tax Act and not to verify the genuineness, authenticity and lawfulness of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... siness to be transacted, is forbidden because though not taken as a motive or reward for showing any official favour, it is likely to influence the public servant to show official favour to a person giving such valuable thing. It was underlined that Sections 161 and 165 IPC as well as Section 5 of the PC Act are intended to keep the public servant free from corruption and thus ultimately to ensure purity in public life. 289. Gifts to A1, a public servant in the context of Sections 161 to 165A IPC now integrated into the Act are visibly illegal and forbidden by law. The endeavour to strike a distinction between legal and unlawful as sought to be made to portray gifts to constitute a lawful source of income is thus wholly misconstrued. 290. With the advent of the 1988 Act, and inter alia consequent upon the expansion of the scope of definition of the public servant and the integration of Section 161 to 165A IPC in the said statute, the claim of the defence to treat the gifts offered to A1 on her birthday as lawful income, thus cannot receive judicial imprimatur. INCOME OF SASI ENTERPRISES BY WAY OF RENTAL INCOME, AGRICULTURAL INCOME AND REPAYMENT OF LOAN. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5-96 and 1996-97 in time for which notices had been issued under Section 148 of the Income Tax Act. This assumes importance in view of the prosecution launched against this firm for delayed submissions of the income tax returns. 294. The prosecution had examined PW-113 Mosin Bijapuri on this issue, who at the relevant time i.e. 1992-93, was the Managing Director in H.B.M. Foundation Limited. He stated about taking on rent by his company, a shop for which an advance of ₹ 21,600/- was made. He also stated about the payment of rent till 1997 i.e. till vacation of the premises. He referred to a copy of the rent agreement with Sasi Enterprises but conceded that he did not know as to who had signed on behalf of the firm. 295. The Trial Court evaluated the oral as well as the documentary evidence in full. It analysed the contents of the documents individually so as to examine the tenability or otherwise of the claim of income under various heads for each assessment year during the check period. It recorded, amongst others, that in terms of Section 269 (SS) of the Income Tax Act, no one was permitted to take or accept from any other person, any amount of loan or deposit exc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... turns, the profit and loss accounts and the balance sheets as well as the orders of the income tax authorities did not prove the claim of income as made by the defence in absence of independent and persuasive evidence to that effect. The letter produced by the Housing Real Estate and Development Private Limited cited as a tenant of the firm in support of the plea of having paid to it an amount of ₹ 10 lakhs as rent, was also rejected, the document being on a plain sheet of paper without any date of issuance thereof. The discrepancy in the name of the firm was also noticed to dismiss this claim as inauthentic. Ex. D-274 adduced by the defence as an excerpt from the confirmation of accounts, furnished by Housing and Real Estate Development Pvt. Limited also did not find the approval of the Trial Court, the same not having been proved by the author thereof and in absence of the required particulars of the transaction, pertinent thereto. The Trial Court as a whole thus rejected the claim of Sasi Enterprises of the additional amount of income of ₹ 95,92,776/- during the check period. 298. The High Court accepted wholly the documents produced by the defence as enumerated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ench mark of balance of probabilities, in our view, the High Court in order to reverse the determination of the Trial Court, on the same set of evidence ought to have applied itself to examine and assess the evidence in this perspective. 301. The High Court, in our view, having regard to its approach has failed as an appellate forum and as a higher court of facts to appreciate the evidence in the correct legal context. The finding of the High Court, on this issue, thus, cannot be sustained. Rental Income of A1 302. Whereas the DVAC quoted ₹ 40,01,127/- to be the income under this head as listed against Item Nos. 53 54 of the Heads of Income, according to the defence, the same ought to have been ₹ 43,75,132/-. The Trial Court considered the oral evidence of PW-102 Raghwan, who at the relevant time, was the Manager (Administration) of the firm Plant Construction Private Limited which had taken on rent from M/s Jaya Publications, vide lease deed Ex. P651, the building mentioned therein and owned by M/s Jaya Publications on a monthly rent of ₹ 1,05,000/-. This witness also proved the agreements whereby the tenancy had been extended thereafter from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing and had installed a printing press thereat and had commenced its business of printing and publication of news letter of AIADMK party namely; Namadhu MGR for circulation amongst the public and various other agencies. 309. It is claimed by the defence that a non-interest paying deposit scheme was started in the year 1990 to supply free copies of the newsletter against deposits of ₹ 12,000, ₹ 15000, ₹ 18000 annually for which the subscribers could get 4, 5 or 6 copies of such newsletter per day, correspondingly. The provision for refund of the deposit by giving prior notice was made as well. 310. The defence examined DW-88 K. Soundravalan, a Chartered Accountant who claim to have handled the accounts of Jaya Publications and Sasi Enterprises and was involved in the finalisation of accounts of the said firms during the period 1992 to 1996. He referred to the aforementioned scheme and also the rates of subscription. He stated that Jaya Publications was an assessee of income tax from the year 1991. According to him, he had personally produced the books of account of the assessee before the special auditors for the assessment year 1994-95 which were certi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ements and printing on job work basis and that as per its profit and loss statement, the net profit derived by it from the above sources, during the assessment years 1992-93 to 1996-97, was ₹ 1,15,94,848.60/-. He also mentioned about agricultural operations being carried out by Jaya Publications in the name of Sapthagiri Farms which yielded agricultural income. 313. The Trial Court, took into account the particulars of income of Jaya Publications as claimed by the defence for the assessment years 1992-93 to 1996-97 sought to be proved through the oral evidence of DW 88 and various documents Exh. D-217 to D-235. The break up of the income from various sources, as furnished by the firm, discloses that its income through scheme deposit over the above period was ₹ 14,10,35,000/- and qua other sources including sales, job work, advertisements, interest, agricultural income, rentals etc. ₹ 1,15,94,848/-. The Trial Court was conscious of the fact that the defence in support of its claim of the income aforementioned, had called in evidence the testimony of 31 witnesses, who did speak about the deposits made by them under the scheme, in addition to DW 88 and that furt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essing the evidence on record traced the proceedings before the income tax authorities on this count, beginning from the assessment year 1991-92. It marked as to how the claim of scheme deposit had been rejected by the assessing officer as the impounded books of accounts did not reflect the same, whereafter following the reassessment proceedings, the Commissioner of Income Tax (Appeals) upheld the same. In this backdrop of the initial failure of the assessee to produce the necessary documents before the assessing officer supporting the scheme deposit and the unexplained delayed in submission of the income tax returns for the assessment years 1991-92 to 1993-94 only on 6.11.1998, the Trial Court held the view that the defence had contrived the story of scheme deposit only in the year 1998 and in furtherance thereof, mentioned about it in the profit and loss account statement enclosed to such returns. The Trial Court, however, did not rest contended on that finding but scrutinised as well the applications of the subscribers brought on record. It, however, noted the explanation of the assessee before the income tax authorities for non-production of such application forms, counter-foil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hu MGR, Sasi Enterprises, Metal King Company of which A2 was the proprietor and Vinod Video Vision to indicate, according to it, circulation of unaccounted and undisclosed funds in the names of various firms and companies of which A1 to A4 were either directors or partners at the relevant point of time. Referring to the amounts mentioned by PW-201 in the accounts of Jaya Publications, the Trial Court disbelieved the plea of credit of deposit of ₹ 14,10,35,000/- as collection from subscription under the deposit scheme as claimed by the defence. 319. The Trial Court on an overall assessment of the evidence concluded that the story of scheme deposit had been introduced by the defence only after the charge-sheet had been filed on 4.10.1997 i.e. through the income tax returns filed in the year 1998. That no evidence had been produced before the Court to show that the scheme had been floated in the year 1990, was recorded. While rejecting the claim of this head of income by the defence, the Trial Court sought to draw sustenance from the fact that the assessee had not produced the primary documents either before the special auditors or the assessing officers and also rejected t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion that the omission on the part of the prosecution to examine the internal auditor and to produce his report warrants adverse inference against the prosecution, does not commend for acceptance. This is more so as the prosecution had not accepted the deposit under the Namadhu MGR scheme to be a lawful source of income. The respondents consequently in order to establish it to be one, ought to have discharged their burden to satisfactorily prove the same and for that matter, ought to have taken necessary steps, if such report was construed to be vitally essential. 322. Vis-a-vis the balance sheet and the profit and loss account for the relevant assessment years, rejected by the Trial Court, suffice it to record that mere marking of documents without any objection from the prosecution ipso facto, in law is not an authentication or proof of contents thereof and the plea to the contrary, thus cannot be sustained. Further, reliance on the presumption based on clause (d) of the Explanation under Section 139(9) of the Income Tax Act, 1961, to suggest that the balance sheet and the profit and loss accounts must have been filed along with the corresponding income tax returns and that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... produce the primary documents in original before the auditors and the income tax authorities in support of such scheme deposit and more particularly the inordinate delay in submission of income tax returns much after the submission of the charge-sheet, along with the other attendant circumstances considered by the Trial Court, we are of the view that the High Court was not justified in allowing an additional sum of ₹ 4 crores as income of Jaya Publications on account of scheme deposit merely on the basis of the oral evidence of the 31 witnesses. This is more so when it was otherwise convinced on the appreciation of the evidence on record that the income tax returns, in particular for the relevant assessment years, incorporating the scheme deposit were doubtful in view of the unexplained delay in submission thereof. In other words, though the High Court itself was left unconvinced about the acceptability of the claim of scheme deposit, due to largely delayed income tax returns, it benignly did award an income of ₹ 4 crores to the assessee only on the basis of the oral testimony of 31 witnesses who, as noted by the Trial Court, owed unstinted allegiance to AIADMK party wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... part of the prosecution to object either to the admissibility of the income tax returns/orders or the mode of proof thereof, ipso facto would not endow the contents thereof with probative efficacy. The reliance on the decision of this Court in R.V.E. Venkatachala Gounder vs Arulmigu Viswesaraswami V.P . Temple and another (2003) 8 SCC 752 on this aspect is thus of no avail to the respondents. 330. This decision dwell on the nature of objections as to the admissibility of documents e.g. an objection that it is by itself inadmissible in evidence or as to the mode of proof thereof alleging the same to be irregular or insufficient. It is not an authority on the proposition that if none of these objections is taken, the contents of the document so introduced, would automatically have to be accepted as the unassailable proof of the facts conveyed thereby. Income of Super Duper T.V. Pvt. Ltd. ₹ 1,00,00,000/-. 331. Whereas the Trial Court has rejected this claim, the High Court has allowed it. This head of income was not included by the DVAC in its list and the defence plea has been that the same had been wrongly and deliberately excluded. This amount is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty deposits was permissible and that though receipt books and counter-foils of the payee-in- slips to show that the amount of ₹ 5000/- each collected from large number of subscribers were credited to account No. 1152, there was nothing on record to show how the investments were made for the purchase of equipments claimed to have been supplied by the company to various subscribers and that in any case, this amount could not have been available with the A3 as the stable corpus of income for purchase of immovable properties, as claimed. Referring to the evidence of DW-85, PW-182 and PW 201 in details, the Trial Court recorded the huge cash inflow and outflow to and from the account of the company. Noticeably, such deposits and withdrawals had been, vis-a-vis several accounts involving A1 to A4 and the firms and companies floated by them during the check period of which they were partners/directors, as the case may be. All these were noted by referring to the accounts and the individual transactions. The Trial Court having regard to the enormity of bank transactions inter se amongst the respondents and their firms/companies declined to sustain the contention of A3 that they were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hus cannot be upheld. Refund of Wealth Tax to A1: 337. Respondent No.1/A1 has pleaded addition of further amount of ₹ 1,35,631/- by way of refund of wealth tax as on 22.4.1993 and to reinforce this claim, has placed reliance on Exh. P-2336 and P-1382 being her Statement of Affairs as on 31.3.1994 and the Statement of Account of Canara Bank, Mylapore, Madras, for the period 1.4.1993 to 30.4.1993 showing the receipt/deposit of the said sum. The testimony of DW64 has also been pressed into service. 338. Having regard to the concept of wealth tax and the comprehension of assets and net wealth attracting such levy, this refund, though contemplated by the Wealth Tax Act, 1957, ipso facto does not certify the lawfulness of the wealth on which initially, a tax was charged and later refunded. In absence of any other evidence to satisfactorily prove the legitimate origin and status of the wealth relatable to the refund, in our view, the same cannot be accepted to be an income from the lawful source as envisaged in Section 13(1)(e) of the Act. More over there appears to be no discussion or analysis of this claim of income by the R1/A1 either by the Trial Court or by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ey 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 contemporaneous factors, associated therewith, rejection of the genuineness of the gift by the Assessing Officer, was sustained. 343. Having regard to the amalgam of the persons and the entities involved in the transactions, aforementioned, we are not inclined, in the absence of other convincing evidence, to accept the said receipts/deposits to be lawful income as envisioned in Section 13(1)(e) of the Act. A1 s Income from Jaya Publications, CANFIN Homes and Namadhu MGR: 344. The next unit of income of A1 as per the respondents is receipts as a partner from Jaya Publications from three sources i.e. drawings from Jaya Publications, loan from CANFIN Homes which had been repaid by Jaya Publications on behalf of A1 and withdrawals from Namadhu MGR. Vis-avis the first component referred to hereinabove, it has been endeavoured on behalf of A1 to demonstrate on the basis of oral and documentary evidence which mostly constitute entri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ₹ 2,70,82,900/- of A1 by way of receipts from Jaya Publications, therefore is unconvincing. In other words, A1, in our estimate, has failed to satisfactorily prove this constituent of income. Additional Income Claimed by A2 to A4: 348. Apropos, A2 to A4, their cavil is that the prosecution had omitted to take into account their actual income and had limited it to ₹ 6,72,41,640/- in all. They claim that the prosecution had not taken into account ₹ 26,50,57,478/- being their individual income as well as that of their firms/companies Sasi Enterprises, Jaya Publications, Jay Farm House, Green Farm House, Super Duper T.V., Anjaneya Printers Private Limited, J.Jay T.V. Private Limited and Super Duper T.V. Private Limited. Break ups of income under different heads have been furnished in the form of a chart and after effecting deductions of amounts included by the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to. 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 ₹ 51,47,955/- and agricultural income of ₹ 35,000/- of A2. Documentary evidence in particular by way of income tax returns and the orders of the income tax authorities have been relied upon. The oral testimony of DW-88 has also been referred to. 353. Per contra it has been contended on behalf of the prosecution that not only the income tax returns and the orders passed in connection therewith are not conclusive of the lawfulness of the income as referred to therein, the fact that M/s Sasi Enterprises along with A1 and A2 had been prosecuted for delayed submission of the returns for the assessment years involved cannot be lost sight of while judging the credibility of the defence based thereon. It has also been urged that receipt of such huge amount of foreign remittance by A2 is plainly unacceptable more particularly in absence of any explanation by her justifying the same. According to the prosecution thus, not only this receipt has not been satisfactor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oreign 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. Section 3 of the Act, which deals with immunities, however makes it clear in sub section (2) that such immunity would not apply in relation to prosecution for any offence punishable under Chapter IX or Chapter XVIII of the Indian Penal Code, the Narcotic Drugs and Psychotropic Substances 1985, The Terrorists and Disruptive Activities, (Prevention) Act 1987, The Prevention of Corruption Act 1988 or for the purpose of enforcement of any civil liability. 357. The assertion of the respondents qua item Nos. 6 and 7 refers to loan availed by A2 for herself and for the business purposes of her firm Metal King, from Housing and Real Estate Development Private Limited, Chennai by two transactions amounting in all to ₹ 60,00,000/-. To demonstrate this receipt, reliance has been placed amongst others o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 the directors of both these companies and the transactions presented are really transfers of deposits from one account to the other. According to the prosecution, these deposits and withdrawals inter se the accounts are disguised exchanges involving the circulation of the money of A1 and cannot be said to be income from lawful source in the backdrop of the charge of abetment and conspiracy. 362. Whereas, the High Court did not take into account these receipts of A2, the Trial Court, apart from being of the view that cognizance of such transfers of fund by way of lawful transactions cannot be taken in the face of Section 269SS of the Income Tax Act and the provisions of the Companies Act, rejected these also on the ground that the respondents had failed to adduc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ₹ 2,90,000/-by A2 from the sale of her properties to Meadow Agro Farms (P.) Ltd., the High Court as well, according to the compilation furnished by the respondents, did not account therefor. In absence of any demurral before this Court, vis-a-vis such omission of High Court, we are not disposed to evaluate the facts as a court of first instance. With regard to the claim of ₹ 4,35,622/- as cash balance available with A2 as on 1.7.1991, on her own showing, as per Ex. P-2191, this amount was in deposit as on 31.3.1991. In absence of better evidence, it is not possible to accept that the same amount was also available at her disposal as on 1.7.1991, the date of commencement of the check period. 369. With regard to item Nos. 46 and 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the financial year 1995-96 to the tune of ₹ 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 serial number 55 of the compilation, suffice it to state that the Trial Court while dealing with item numbers 45 and 48 of the Heads of Income of the DVAC had awarded the differential amount of ₹ 6,60,064/- and therefore the respondents ought not to have any cavil in this regard. 374. Qua item number 56, A4 claims that though she had received an amount of ₹ 1,11,231/- by way of gratuity, the prosecution has recorded this receipt to be of ₹ 1,01,231/-. The Trial Court, while dealing with this item of income at serial number 63 of the Heads of Income of the prosecution, has observed that in terms of service register, ₹ 40,000/- had been sanctioned to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 ₹ 1 crore by way of loan availed from Indian Bank by M/s J. Jay T.V. Private Limited, reliance has been placed on the bank statement of this firm. As per the prosecution, this firm is not one of those involved in the case and therefore its transactions had been left out from the purview of investigation culminating in the charges. Whereas the High Court has not dwelt upon this item, it is likely that for the reasons cited by the prosecution, there is no reference of this loan in the decision of the Trial Court as well. 378. As the principal grievance of the respondents is that such evidence though availabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hem, 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 ₹ 1 crore. Reliance had been placed on the bank accounts of Sasi Enterprises showing the receipt of ₹ 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 in details. The Trial Court was however of the view that this receipt by Sasi Enterprises was in fact diversion of unexplained wealth of A1 to its account. 386. Next in the que of income claimed by A2 to A4 is by way of dues repaid to Sasi Enterprises by M. Ramachandran Nagammal and Subramaniuim during 1992-93. The balance sheets of Sasi Enterprises as on 31.3.1991 and 31.3.1992 along with the relevant orders of Commissioner of Income Tax (Appeals) have been pressed into service in support of this assertion. According to A2 to A4, under this head an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ₹ 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 and the balance sheet to this effect are all prepared subsequently and cannot be accepted to be genuine. 393. The Trial Court noticed the reliance of the respondents on the relevant income tax returns and the orders of the income tax authorities accepting the same rather than on any independent and acceptable evidence of lease involved and in fact rejected the copy of the lease deed produced in one of such instances by recording cogent reasons. It did take note of the fact that neither the lessor in any ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is 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 Court generally referred to the evidence adduced by the respondents and without any endeavour to evaluate the same to ascertain its probative worth, readily acted thereon to return a finding that the income of the firm, cumulatively having regard to the various sources claimed by it, was assessable at ₹ 25 lakhs. 399. Qua the claim of A2 to A4 that they earned ₹ 6 lakhs during the assessment year 1996-97 from the proceeds of sale of building materials perta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g 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 Publications vis-a-vis the Namadhu MGR's current account and that of the account of A1, Sasi Enterprises, Vinod Video etc. of which either A1 and A2 together or A2, A3, A4 were the partners/proprietor thereof. While rejecting the scheme deposit as sham and frivolous and designed after the filing of the charge sheet, the Trial Court concluded that the evidence in support thereof had been devised only for the purpose of defence against the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts, this figure ought to have been applied in the relevant formula. 410. Noticeably, the valuation of the assets except as cited by the prosecution at serial numbers 1, 2, 3, 10 and 11 has been accepted by the High Court. Nevertheless, while computing the value of the assets finally, it did not take into account as well its evaluation in respect of item numbers 1, 2, 10 and 11 and limited its consideration only to item number 3 which it had valued at ₹ 5,10,54,060/-. 411. Thus in the above revealing perspective, it is not considered essential to scrutinise the evidence on the assets pertaining to all items thereof and it would be adequate enough to limit the audit only qua item number 3 i.e. new or additional construction of buildings, more particularly because of its decisive bearing on the adjudication. 412. In the above premise, being of crucial relevance, evidence with regard to the item number three namely; new or additional construction 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 79 and 181 referred to hereinabove, it has been asserted that as against ₹ 13,65,31,901/- assessed by the prosecution, the value of her assets corresponding thereto and as accepted by the income tax authorities is ₹ 3,62,47,700/- and thus an amount of ₹ 10,02,84,201/- needs to be deducted. The break up of expenditure on the relevant counts towards these items has been provided as hereinbelow: a) Renovation of 36 Poes Garden : Rs.76,74,900 b) Construction at 31-A, Poes Garden : Rs.1,35,10,500 c) Hyderabad Grape Garden Farm House : Rs.1,39,62,300 d) Compound wall for Hyderabad Farm House : Rs.11,00,000 Total Rs.3,62,47,700/- 415. While endeavouring to authenticate the above figure, the deficiencies in the evidence of the prosecution relating to the valuation of the constructions have been highlighted in quite some details. Broadly, the denunciation qua the process related t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... meter to ₹ 21000 per sq. meter cited by the prosecution. While dismissing the valuation offered by the prosecution to be arbitrarily exaggerated and inflated, it has been asserted that though the Trial Court was right in observing that the prosecution had not been able to establish the cost of construction in respect of special items like marble, it erred in accepting the valuation made by it after granting only 20% deduction in the overall quantum. It was pointed out as well that the Trial Court's rejection of the documents i.e.. D-210 series pertaining to the price of marbles prevailing during 1995-96 by construing the same erroneously to be of subsequent years, was patently flawed. It has been urged that the prosecution had failed to prove beyond reasonable doubt, the expenditure towards the construction of the items under the head, new or additional construction of buildings and thus no burden lay on the defence to explain the amount spent towards the same. According to the defence, the valuation made by the High Court of the expenditure on such construction is correct and does not merit any interference. 417. Per contra, it has been insisted on behalf of the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le by any means. 419. As referred to hereinabove, the Trial Court scrutinized the oral and documentary evidence of both sides relating to 18 items of new/additional constructions out of 21 cited by the prosecution. It exhaustively evaluated the evidence item wise and weighed the merits and demerits thereof in details. It took note of the reports submitted by the inspection team qua every new/additional building involved and also took cognizance of the denunciation by the defence thereof primarily on the ground that those lacked in details and further were not accompanied by supporting documents. The Trial Court appreciated the evidence of the prosecution witnesses who were participants in the exercise of the valuation of the buildings, the ancillary structures, accessories, fixtures and furnishings. The members of the inspection team, who were Civil Engineers drawn from the Public Works Department, in addition to Electrical Engineers from Electricity Department, as their evidence noticed by the Trial Court, would demonstrate did take into account all the essential aspects of the subject matter of survey including the make and age of the structures and also duly discounted the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t to have been adopted, was also dismissed. It took note of the evidence of DW-78 that building valuation could be done on the basis of plinth area of the building or the detailed method. It was of the firm view that the engineers involved in the process of the evaluation of the new/additional buildings were competent for the assignment entrusted and that the defence had not disputed the measurement of the buildings and the nature of the constructions as well as the quality of the materials used. It however observed that the prosecution could not produce any direct evidence in proof of the cost of the special items used and had relied on the oral testimony of its witnesses who had stated that they had ascertained the price of marbles and other special items from the market. 422. The defence has tried to demonstrate that the rejection by the Trial Court of the invoices Ex.D210 series pertaining to marbles as proved by DW96 construing the same to be the year 1999 was patently erroneous as the said document disclosed that those related to the period between 1994 and 1996. Be that as it may, the Trial Court however while rejecting the objections of the defence on the valuation of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for construction of such sentry shed, the High Court deduced that, it was valued for one square at ₹ 31,580/- and therefrom as a measure of cost of construction for new/additional building, it applied ₹ 28,000/- per square for the said purpose. It accounted for the other investments towards super structures, windows, doors, internal painting, electrification, flooring, water supply etc. The total constructed area, according to the High Court, was 1,66,839.68 sq.ft. i.e. 1668.39 squares. It accepted an area of 25662.22 sq.ft. i.e. 256.62 squares as area on which granites had been used. It added an amount of ₹ 9,65,060/- towards expenditure for sanction of plan and architect fees. 427. Qua the prosecution evidence, the High Court observed that though reports had been prepared by the inspection team for the new/additional buildings involved, all the members of inspection team did not subscribe their signatures thereto. Further in course of the testimony, they did not speak anything about the measurement of the floor area where marbles and granites had been used. It held the view that the valuation reports by themselves did not prove the estimate of granites and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of assets by ₹ 22,69,34,885/ i.e. (Rs.29,82,71,254.32 ₹ 5,10,54,060). 431. According to A2 to A4, the valuation of their assets at the beginning of the check period as per the prosecution was ₹ 59,29,168/- and according to them ₹ 63,64,790.60. At the end of the check period, the figure swelled, as per the prosecution to ₹ 37,55,10,354.38, which in their computation became ₹ 25,03,36,963.40/-. Thus, whereas the prosecution case is that the valuation of their assets acquired by A2 to A4 during the check period was ₹ 36,95,81,186.38, it had been only ₹ 24,39,72,172.80 as per the estimate of these respondents. 432. A2 to A4 have not disputed the prosecution's figure of ₹ 59,29,168/- and in fact had added ₹ 4,35,622/- being the cash balance available with A2 at that point of time making the tally according to the respondents at ₹ 63,64,790.60. While commenting on the prosecution's valuation of their assets at the end of the check period at ₹ 37,55,10,354.38, A2 to A4 have asserted that the properties of six companies; Signora Business Enterprises (Private) Limited, Meadow Agro Farms (Private) Lim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... overall cost. According to A2 to A4, in view of the failure of the prosecution to prove the cost of construction, the entire valuation made by it to this effect ought to have been discarded and the evidence adduced by it should have been rejected in its entirety. 436. In course of the elaboration of this salient feature of the disputation, it has been underlined that there has been nonapplication of mind by the Trial Court to the evidence on record in arriving at its findings. Apart from referring to the oral and documentary evidence adduced by both the parties, reliance has also been placed amongst others on the income tax returns and the orders passed in connection therewith. The valuation reports of the buildings submitted by the inspection team, comprised of civil engineers of the Public Works Department and others, have been seriously repudiated on the ground of being laconical, incredible, inchoate and deficient in material particulars. The respondents have been particularly critical about the valuation of electrical installations and other items as in their perception, those were wholly unfounded in absence of standard rates and corroborative proof based on market surv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... valuation of sarees and footwear and that had effected considerable reduction in the value of the jewellery and silverwares. In all, according to the prosecution, though it had cited higher value of the assets, it has accepted the determination thereof as made by the Trial Court. 439. The prosecution has jettisoned the disclosures in the income tax returns and the orders/opinions expressed thereon by the departmental authorities as wholly inconsequential. It has been insisted that enquiries made by the income tax authorities even if conducted, those had been ex-parte in which the investigating agency had not been associated. In any view of the matter, according to the prosecution, the findings of the income tax or wealth tax authorities on the valuation of the assets, neither bind the prosecution nor is of any conclusive relevance for the case and is far less final for the criminal court trying the same. The cavil of the respondents that the civil engineers of the inspection team were incompetent to undertake the valuation work has been emphatically refuted by the prosecution. That the High Court in adopting the plinth area of the new/additional buildings had erroneously redu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itional construction of buildings to ₹ 5,10,54,060/- as effected by the High Court has to be held as patently erroneous. Consequently the quantification of the disproportionate assets is also visibly wrong. Expenditure 442. Annexure IV to the charge-sheet enumerates 244 items of expenditure cited by the prosecution. This sums up to ₹ 11,56,56,833.41 out of which the major segment being ₹ 6,45,04,222/- is towards the expenditure incurred in connection with the marriage of Tr. V.N. Sudhakaran, (A3) on 07.09.1995. Incidentally, the High Court did accept the expenditure assessed by the prosecution in respect of all items except item nos. 2 to 6 i.e. the marriage of A3 and reduced the sum of ₹ 6,45,04,222/- as fixed by the DVAC to ₹ 28,68,000/-, thus occasioning a drop of ₹ 6,16,36,222/-. The Trial Court however had also lessened the amount cited by the prosecution by ₹ 7,50,000/- against item No. 235 and also the marriage item by ₹ 3,45,04,222/-, thereby reducing the total expenditure incurred to ₹ 8,49,06,833/-. The Trial Court had assessed ₹ 3,00,00,000/- towards marriage expenses. 443. In this factual prem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wami, Chief Engineer, PWD, Tamil Nadu, who, as stated by this witness, had been entrusted to complete the pandals' work by A2 in a proper manner. This witness testified to have consulted a plan given to him by the architect involved whereafter he amongst others levelled the land and put up the pandals as specified. This witness affirmed that several pandals had been erected amongst others for serving food to the VIPs, kitchen and cooking sheds together with marriage platform, bathroom, rooms for the bride and bridegroom. He further stated that the expenses towards this construction work were made on behalf of A1. This witness clarified that the pandal work at the reception venue was undertaken by Kumarason Nader which too he had to oversee on the instructions of the Assistant Secretary of the secretariat of A1. According to this witness, an amount of ₹ 14 lakhs in four installments was also paid by the bride s father Mr. Narayan Swamy. Incidentally PW-181 had also referred to the same architect and the contractors as named by PW-200 in his evidence. 446. The Trial Court after taking note of the crossexamination of this witness, accepted his version being satisfied th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ditions of the daily on 11.09.1995 as well and that he had raised a bill of ₹ 2,47,660/- therefor. 453. The evidence of PW-199 A.G. Krishnamurti of A.G.K. Travels, Chennai is that he had arranged two Ambassador AC cars from 06.09.1995 to 08.09.1995 on rent, raised bills in the name of A1 and received payment of ₹ 15,814/- through cheque issued by her. 454. PW228 Shri Rajasekharan, Chartered Accountant claimed to have filed Income Tax and Property Tax returns of A1 for year 1984-85 to 1996-97 and stated about seizures amongst others of a file Ex. P-2218 containing the expenditure bills, receipts etc. in connection with the marriage. This witness was not cross-examined at the first instance on behalf of the respondents and thereafter he failed to appear in spite of issuance of summons. Though the defence raised a plea that in absence of cross-examination of this witness, his untested testimony ought to be eschewed, the Trial Court noted that neither the respondents-accused had crossexamined this witness when the opportunity was available nor had thereafter, when as many as 145 witnesses have been recalled for cross-examination, did they seek the assistance of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Trial Court noted the evidence of PW-192 Mr. Sanjay Jain, Proprietor of Titan Show Room, Chennai to the effect that he had delivered 34 watches amounting to ₹ 1,34,565/- for which he was paid the amount in cash. 458. PW-196 Mr. Sayad Bawker, claimed to have done the stitching work of suits, shirts, sherwanis etc. for the bridegroom-A3 for which he received ₹ 1,41,025/- as the charges therefor. The witness conceded that the payment was made by Ram Kumar, the maternal uncle of the bride. The Trial Court however disbelieved the statement that the uncle of the bride had made the payment. 459. On the expenditure of 100 silver plates, the prosecution had examined PW-191, Mr. Srinivas and PW-214 Mr. A.R. Rehman who had conducted music concerts. Both of them stated to have made the performances on the request made on behalf of A1 and that they had not charged therefor. They however admitted to have been offered silver plate, silk saree and a small kumkum box at the time of their invitation for the event. They deposed that on being requisitioned by the investigating agency, those items had been handed over to the concerned officers. 460. Acting on the evidence ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rd. The witnesses also did concede that accounts/receipts in connection with the collection and expenditures had not been retained/maintained. 464. In addition to the above, the respondents examined DW64 S. Shanmugam, Chartered Accountant who claimed to be the auditor of A1 from 1996 to 2000 and had dealt with her accounts/assessment for the assessment years 1991-92 to 1997-98. He referred to the query made by the income tax department in the year 1995 about the amounts spent by her in the marriage and also the reply given by A1 in response thereto. He also deposed that on necessary enquries being made, the income tax authorities eventually did write off the expenditure of ₹ 94 lakhs, which earlier, it had observed, had been spent by A1 on the event. Reference was also made to the assessment made by the income tax authorities with regard to food expenses to the tune of ₹ 3 lakhs which also stood deleted in appeal. 465. DW24 T. Tharani, who was a painter and also Art Director of the films, was examined to affirm that in connection with the marriage, people from AIADMK party had approached him for designing the facade of the entrance of the marriage hall and tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issioner of Income Tax, Central Circle-II, Chennai produced documents containing 10 volumes and exhibited Ex. D325 to D364, referred to by the other witnesses for the defence. This witness however admitted that the assessment for the year 1993-94 pertaining to the concerned respondents was sub judice before the High Court in appeal and that the assessment orders relating to them had not been finalised and were pending before various authorities. 470. It has been emphatically urged that the evidence of PW181 ought to have been summarily rejected being hearsay and besides speculative, arbitrary and based on no verifiable data and that this witness is wholly untrustworthy even otherwise. It was insisted on behalf of the respondents that the learned Trial Court had also rejected the evidence of PW181 to be hearsay in character and thus in absence of any other admissible evidence, its computation of the expenditure at ₹ 3 crores is also without any tangible basis and is wholly inferential. The testimony of PW181 being clearly hearsay in nature, in terms of Section 60 of the Evidence Act, the same could not have been accepted as substantive evidence and thus the Trial Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he testimony of PW181 and the report Ex.P1019 primarily on the ground that this witness had no personal knowledge or idea of the structures raised at the venue of the marriage and of the reception and that his version with regard thereto was on the basis of derived inputs though it mentioned that the witness, as attested by him, did consult the architect, the Art Director, the electrician etc. who accompanied him to the site and that he had been given as well a drawing of the wedding choultry and the measurements of the pandal along with the sketch of the decorative arches etc. It held the view that the witness had prepared the report on the basis of what the witness had heard and seen from the drawings and the sketches and was not personally aware of the authenticity thereof and that he did not ask for quotations or confirm the sketches. That his report Ex.P1019 was deficient and scanty in essential particulars to inspire confidence for its acceptance was recorded. On this aspect, the High Court also referred to the evidence of PW200 K.P. Muthuswamy, who claimed to have been entrusted to oversee the works related to the pandals by A2. This witness, to reiterate had confirmed that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e s father who would have been the best person to state about the actual expenses on the marriage. The High Court as well seem to have accepted that it was the customary practice for the bride s family to bear the expenses of the marriage normally and though it was of the view that such expenditure was comprised of verifiable and nonverifiable components, it was difficult to ascertain the nonverifiable segment while verifiable expenditure could be assessed through investigation. Et al, the High Court eventually accepted the figure of ₹ 28,67,520/-, as cited by the A1 to be the amount expended by her in the marriage and limited the liability of the respondent- accused, as stated above, to ₹ 28,68,000/-. Thereby the High Court reduced the expenditure of ₹ 6,45,04,222/- towards marriage expenditure by the R1/A1, as mentioned by the prosecution, to ₹ 28,68,000/-. 473. A2 to A4 also have positioned themselves to question the expenditure of ₹ 2,38,89,609/- attributed to them by the prosecution. This amount, as is apparent from annexure IV to the charge sheet, includes sums expended not only by A2, A3 and A4 but also by nine companies/firms as named ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Court and its computation of the marriage expenditure of ₹ 3 crores is correct and did not call for any interference. According to the prosecution, the Trial Court did not reject the evidence adduced by it, but on a rational appraisal thereof, had moderated the marriage expenditure to be ₹ 3 crores. It has been urged as well that the Trial Court had rightly disbelieved the evidence of the defence witnesses and more particularly the party workers who claimed to have collected funds to spend the same on the event. That A2 had failed to account for the expenditures, referred to by A1 in her reply to the notice to the Income Tax Department had been underlined too. 475. The break-up of expenditure of ₹ 6,45,04,222/- on the marriage has been furnished by the prosecution as hereunder. Expenses towards the erection of marriage pendal over and above the admitted/recorded payments Rs.5,21,23,532/- Expenditure incurred towards cost of food, mineral water and tamboolam Rs.1,14,96,125/- Cost of 34 Titan Watches Rs.1,34,565/- Amount paid t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arani had provided him with the plan and the sketch map on which the pandals and other structures at the venues had been constructed, cannot be discarded as hearsay. In this view of the matter, the approach of the Trial Court to weigh the probative worth of the testimony of PW181 in conjunction with PW200 cannot be repudiated to be impermissible in law or outrageously fallacious. 477. PW200 K.P. Muttuswamy, Chief Engineer, Public Works Department, Tamil Nadu did assert on oath that he was instructed by A2 to complete the pandal works as early as possible. He also referred to a plan to that effect furnished by the Architect Vijay Shankar in presence of the contractors entrusted for the execution thereof. The witness claimed to have arranged land at the identified sites to be levelled and also provided in details of the number, size and specification of the pandals together with the purposes thereof. The witness was candid to state that the father of the bride had paid ₹ 14 lakhs towards the expenditure and that therefrom, he disbursed payments. He deposed as well that A1 and A2 had inspected the work by visiting the site about a week prior to the marriage. He claimed to h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... department without independently appraising the evidence adduced by the parties at the trial. 479. Though it is not unknown, that very often the bride's family shares or bears the expenditure of marriage, dependent on the practice prevalent, it is not an invariable phenomenon and permits of exception in varying fact situations and therefore no rigid assumption either way is tenable. In any case, necessary deductions would have to be drawn on the basis of the evidence adduced. As the investigation into the expenditure on the marriage had to be conducted more than two years after the event, it is logical that the exercise involved was expected to be informed with some assumptions, which if realistic and logical, would not as such vitiate the assessment as incurably infirm or non-est. 480. On an overall consideration of the evidence adduced by the parties, we are inclined to hold that the computation of the expenditure incurred by A1 in the marriage as made by the High Court is unacceptable in the teeth of the materials on record to the contrary. There being concurrent findings of the two forums on the rest of the items of expenditure, we construe it to be inessential to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nies/firms which were formed with A2, A3 and A4 and Lex Property Development (Pvt). Ltd. in different combinations were registered under the Companies Act. Noticeably, the properties of these companies/firms had been acquired during the check period and significantly about 50 bank accounts were opened with the Indian Bank, Abhirampuram and Canara Bank, Mylapore in the names of the respondents and their firms/companies during that time. The prosecution has also brought on record the fact that out of these firms/companies, six firms namely; Jay Farm House, J. Real Estate, Jaya Contractors and Builders, Green Farm House, J.J. Leasing and Maintenance and J.S. Housing Development had been registered on the same day ie. 25.1.1994 and ten other firms namely; Vigneshwara Builders, Lakshmi Constructions, Gopal Promoters, Namasivaya Housing Developments, Ayyappa Property Developments, Sea Enclave, Navasakthi Contractors and Builders, Oceanic Constructions, Green Garden Apartments and A.P. Advertising Services on 15.2.1995. According to the prosecution, all the respondents availed of the services of common auditors, architects and accountants. It has referred to numerous inter-account transfe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om much prior to the check period, A1 and A2 had been partners in the firms namely; M/s Jaya Publication and Sasi Enterprises and their business connection ipso fact also cannot be construed to be an incriminating circumstance. It has been maintained that A2 to A4 have purchased properties with their own resources and efforts and that the prosecution has failed to establish even a single instance to demonstrate that the funds for such acquisitions had been doled out by A1. Contending that starting of a firm by a non-public servant by itself cannot be an irrefutable determinant to assume conspiracy with a public servant more particularly when A1 had never been a partner in any of the firms started during the check period, it has been pleaded that the finding of the Trial Court that the evidence available did prove issuance of cheques by A1 in favour of the co-accused and the applications by her for availing loan for the firms involved is factually incorrect. It has been argued that the prosecution has failed to cite even one instance where A1 had transferred any fund to A3 and A4 and for that matter to any of the six companies in particular which allegedly have acquired properties t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6,00,000 and that it had borrowed a sum of ₹ 84,07,172 from the Indian Bank. Further, it had a receipt of ₹ 2,04,98,350 from sundry creditors. In addition to the above, it has been pleaded that the company also received an inter-corporate deposit (ICD) from Kalyani Constructions Pvt. Ltd. of an amount of ₹ 1,56,67,000 during the year ending 31.3.1996 and ₹ 45,00,000 from Altaf Constructions Private Ltd. That this company did make an investment of ₹ 2,63,49,857/- in immovable property apart from granting loans to A3 and three other firms including Sasi Enterprises, has been mentioned. According to the respondents, thus the total expenditure of this company including advances did sum up to ₹ 3,03,48,357/- which was met from its own corpus, as had been accepted by the income tax authorities. 485. It has been insisted in particular that the properties acquired by Signora Business Enterprises Private Limited were prior to A3 and A4 becoming the additional directors of the company and therefore the finding to the contrary as recorded by the Trial Court was apparently erroneous. 486. With regard to Ram Raj Agro Products Limited, it has been ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uired and constructions raised by the six companies have been from their own funds and therefore, the amount of ₹ 4,70,24,439/- towards the same is not liable to be integrated while adjudging the assets of A1 to A4. 488. In consolidation of the above, it has been urged on behalf of A2 to A4 that they along with the six companies whose assets, income and expenditure have been combined by the prosecution to lay the charge, being not public servants, cannot, in law, be called upon to explain their source of income or the manner of acquisition of their assets or the mode and extent of their expenditures. 489. Referring to Section 13(1)(e) of the 1988 Act, it has been asserted that the same does not cast any obligation on a nonpublic servant even if arraigned as a co-accused with the public servant, to furnish explanation as otherwise contemplated therein. It has been maintained that though the clear mandate of this legal provision is that for the charge to succeed, the prosecution must establish that the public servant, had been during the term of his/her office holding his/her assets through some other person or to put it differently, some other person had been holding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f any of the six companies, it has been emphasized that these companies had been floated prior to the check period. Apart form contending that there is no evidence to suggest that A1 had either given loan to the six companies or had made any investment therein, it has been urged as well that these companies not having been arraigned as accused, their income and assets could not have been attributed to any of the respondents, being impermissible in law. In a way, thus it has been argued that the assimilation of the assets of these companies with those of the respondents and the eventual confiscation thereof amounts to condemning these entities unheard. The prosecution as well has been severely criticized to be unfair in withholding the audit report prepared by Mr. Chokkalingam in respect of Jaya Publications and Namadhu MGR. That several other documents seized in course of the investigation were also endeavoured to be withheld and that it was on the intervention of this Court that the respondents could secure an opportunity to traverse the same, has also been mentioned. In reiteration of their plea made with regard to the deficiencies in the assessment of the valuation of the constr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt to that of the other accused persons or the six companies. Such a factor was really non est but presumed and acted upon by the Trial Court to infer conspiracy and abetment. It has been emphatically contended that the Trial Court ignored as well the fact that M/s Jaya Publications and M/s Sasi Enterprises along with A2 to A4 and six companies had secured substantial amounts of loan from banks and other private sources which they rolled in their respective business to assume their inter dependence and sustenance through circulation of unaccounted reserves of A1 in their accounts. 494. On the aspects of abetment and conspiracy, the High Court dwelt upon the evidence in general without undertaking any minute analysis of the testimony of the individual witnesses or the documents/ transactions related thereto. It in particular, while dealing with the charge of accumulation of unaccounted wealth by A1 and diversion thereof to A2 to A4 to acquire immovable properties and administer the firms/companies involved, noted that the respondents along with the firms and companies had borrowed loans of ₹ 24,17,31,274/- from banks. The High Court therefore concluded that this amount ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dmitted of direct or circumstantial evidence leading to such inference and embarked on the process of scrutinizing the facts and circumstances attendant on the various transactions pertaining to acquisition of properties of the six companies of which A2 to A4, in different combinations, were the directors, as well as the cash flow inter se in their bank accounts. 496. As the narration outlined by the Trial Court would reveal, it dealt with in minutest details the oral and documentary evidence available on record. Without resorting to a dialectical appraisal of the evidence of the individual witnesses and the documents brought on record, it would be suffice in our comprehension to notice the salient features discernible therefrom and strikingly common to the transactions. 497. The evidence on record demonstrates that these companies though were in existence from before the commencement of the check period and of which A3 and A4 were not the directors then, did neither have any significant business activity nor transaction nor any profit earning pursuit to their credit. This the Trial Court rightly noticed was apparent from the relevant returns and balance sheets. The conte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A2 to A4 and their firms as well as these companies. 499. In respect of the acquisition of the immovable properties, the evidence attested that soon after A3 and A4 had become directors of these companies, they got involved in the negotiations and survey of lands intended to be purchased. The sales were got executed through the attorneys of the owners of the lands for which deeds of power of attorney were obtained from such owners. Not only uneven bargains but also inadequate consideration/price by undervaluing the properties was noticeable in the transactions. Evidence on record disclosed that instructions were issued from the higher authorities to the Registrars/Sub-Registrars to respond to the directions issued from the office of A1 for documentation and registration of the deeds involving such purchases and as a matter of fact, on various occasions, such precepts did come and were readily complied with. Several registrations were executed in the house of the vendors and at times, also in the concerned office of the Registrar/Sub-Registrar. The sale deeds executed, which are not disputed so far as those relate to these companies, did not indicate that the purchases had been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... companies was noted. The Trial Court also recorded the non-compliance of the various provisions namely, i.e. Sections 209, 210, 211, 215 and 220 of the Companies Act in particular to conclude that as required by these provisions, no proper books of accounts had been maintained, no returns had been filed by these companies from the date of incorporation till the date of attachment of their properties pursuant to the notifications issued by the Government of Tamil Nadu under the provisions of Section 3 of the Criminal Law Amendment Ordinance 1944 as per GOMS No. 120 dated 29.1.1997 and GOMS No. 1183 dated 25.9.1997. That the balance sheet and profit and loss account of the companies were not maintained and processed as mandated by Sections 213 and 220 of the Companies Act was also underlined. It was of the view as well that there was nothing on record to show that A2 to A4 had convened any general meeting of the companies during the relevant time or that regular returns were filed before the Registrar as required under the law. It also noted that the companies did not have their own auditors appointed under Section 234 of the Companies Act and that the auditors of A1 to A4 themselves ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Minister of the State. It thus concluded that the properties registered in the names of these companies and which formed the subject matter of GOMs No. 1183 dated 25.9.1997 and GOMs No. 120 dated 12.1.1997 issued by the State of Tamil Nadu were really the properties acquired and held by A2 to A4 for and on behalf of A1. 502. The evidence on record thus propel several conspicuous and singular features as noted comprehensively by the Trial Court. Apart from the fact that the properties aforementioned had been acquired during the check period, the general phenomenon decipherable is that the acquisitions had been made in the names of the newly formed or acquired firms/companies with their directorial composition, as noticed hereinabove and the two existing firms i.e. M.s. Jaya Publications and Sasi Enterprises of which A1 and A2 were partners. 503. Evidently about 50 banks accounts were opened with the Indian Bank, Abhaypuram and Carana Bank, Mylapore in the names of accused persons and the firms/companies as has been stated by PW182 and PW201, details of which are as under: Sl.No. A/C No. Name of the Bank ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dian Bank Meadow Agro Farms Pvt. Ltd. 13.03.1994 18 C.A.No.1095 Indian Bank River Way Agro Products Pvt. Ltd. 06.08.1994 19 C.A.No.1134 Indian Bank Signora Business Enterprises Pvt. Ltd. 23.11.1994 20 C.A.No.1107 Indian Bank Lex Property Developments Pvt. Ltd. 31.08.1994 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 994 42 C.A.No.1146 -do- Gopla Promoters (A.2,3 and 4) 23.03.1995 43 C.A.No.1140 -do- Lakshmi Construc- tions (A.2,3 and 4) 23.03.1995 44 C.A.No.1137 -do- Vigneswara Printers (A.2,3 and 4) 23.03.1995 45 C.A.No.1164 -do- Navshakti Contractors and Builders 23.03.1995 46 C.A.No.1161 -do- M/s. Sea Enclave Enterprises (A.2,3 and 4) 23.03.1995 47 C.A.No.1158 -do- Ayyappa Property Development (A.2,3 and 4) 02.03.1995 48 C.A.No.1155 -do- Namo Sivaya Housing Development (A.2,3 and 4) 23.03.1995 49 C.A.No.1149 -do- Sakthi Constructions (A.2,3 and 4) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss 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 above companies bearing their seal. It concluded on this premise that the properties purchased in the names of the companies thus never acquired the status of the assets thereof. It noticed, as well, to reiterate, that in 90% of the registered deeds, the companies were not represented either by the Secretary or the Director and the documents also did not contain the address of the companies which was a clear indication of the shady and murky deals undertaken in their names with a view to screen the properties acquired through illegal means. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered 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, the Special Judge had the power to try not only an offence punishable under the said statute but also one for conspiracy to commit or attempt to commit or abetment of any offence thereunder. The Trial Court thus held that private individuals could be prosecuted by the Special Court under the Act on the ground that they had conspired with and abetted the act of criminal misconduct committed by a public servant within the meaning of Section 13(1)(e) of the 1988 Act. 509. Turning to the charge of criminal conspiracy, the Trial Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount of ₹ 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 ₹ 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 ₹ 501 by A3, on 24.9.1994, a sum of ₹ 4,10,000 was received in deposit in the account by way of cash. The Trial Court made an itemised reference to various deposits made in this account of heavy sums varying from ₹ 26000 to ₹ 11 lakhs from other accounts standing inter alia in the name of A2 and several other firms of which A1, A2 and A3 in particular were partners. That huge amounts were credited through clearance and were similarly withdrawn were referred to by this witness. 510. The Trial Court, thus deduced that the acquisitions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 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 ₹ 12000/- to ₹ 25,00,000/- as would be evident from the particulars of such transfers involving the accounts of A1, A2, A3, A4, Namadhu MGR, Fax Universal, Anjaneya Printers, Green Farm House and Meadow Agro Farm. 514. Oral evidence in the form of testimony of M. Jayaraman (PW-198), Mani, Ram Vijayan Balakrishnan and the documents adduced by the prosecution through the witnesses prove that an amount of ₹ 13,55,28,685.50 in all, had been deposited by cash through pay-in-slips in the current accounts of A2 to A4 and the firms by these witnesses and others. These deposits significan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 the partners of the other firms named above. 516. In this context, the Trial Court inter alia referred to the decision of this Court in Kale Khan Mohammad Hanif Vs. C.I.T. , (1963) 50 ITR 1 (SC), wherein it was expounded that the onus was on the assessee to explain the nature and source of cash credits as to whether those stood in the assessee's account or in the account of a third party and that the assessee had a leg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rough 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. These witnesses had stated further, as noted by the Trial Court, that the pay orders and the demand drafts issued by them for the purpose of acquisition of the assets as involved were at the instance of the respondents. That these demand drafts or the pay orders could be directly related to the cheques or pay orders mentioned in the various sales deeds was recorded as well. This too, as held by the Trial Court, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 with regard to the transfer of the funds and the mode of utilization thereof. 522. The constitution of various firms during the check period was cited as well to be another circumstance to prove the conspiracy amongst the respondents. The Trial Court recounted that at the commencement of the check period, A1 and A2 were involved in the two concerns namely M/s Jaya Publication and M/s Sasi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 accused were interested therein. The Trial Court rightly did mark as well, referring in particular to the evidence of PW159 Sub- Registrar, North Beach, Sub Registrar s Office and PW71 Radha Krishnan, Horticulture Officer that they were called to Poes Garden and on the instructions of higher officers, they did oblige A1 even by relaxing the rules in the registration of large number of doc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. 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 ₹ 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 of registration of six of these had been 25.1.1994 and three bank accounts of five of them had b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or 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 ₹ 32 lakhs towards the price of sarees and further reduced the value of gold and diamond to the extent of ₹ 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 adduced by it, suffice it to state that the decision rendered by it proclaim t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 and while doing so, he is required to issue to the pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... han 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 urged on behalf of the State that having regar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f 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 ₹ 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 Act provided for confisc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 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, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an concern, rather the 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 ₹ 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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