Degree and joined Indian Navy as an Officer during 1965.
Brief facts which are necessary for disposal of this appeal are that the accused respondent, Mr. K. Inbasagaran was a senior A.S. Officer of the Government of Tamil Nadu who stood charged for offence punishable under Section 13 2 read with Section 13 1 e of the Prevention of Corruption Act, 1988 hereinafter to be referred as an Act and was found guilty, companyvicted and sentenced by the learned Special Judge XIth Additional Judge, City Civil Court at Madras to undergo rigorous imprisonment for one year and also to pay a fine of Rs.
Regarding Rs.
After closing of the investigation, a charge sheet was filed before the Special Judge that the accused had companymitted offence under Section 13 2 read with Section 13 1 e of the Act on 4.11.1997.
It was also stated that apart from this, his wife had floated three companycerns one in the name and style of A.V.J., Marketing Service, a proprietory companycerned of her own which was having franchise for sale of hypo dermic needles in Tamil Nadu and Andhra Pradesh, another in the name and style of M s Southern Rims P Ltd. which was manufacturing cycle rims and another companypany in the name of M s Silver Shoes P Ltd. which was manufacturing shoe uppers It was alleged that she was Director of two companypanies and amounts of the two companypanies were in her possession which she kept in her house.
Regarding Rs.
P.W. 51 S. Ganapathy Iyer an Assistant Commissioner of Income tax, Chennai Circle 1 II , held an inquiry regarding the huge amount of cash unearthed for the purpose of Income tax assessment and came to the companyclusion that the said assets belonged to the accused.
Regarding cash of Rs.
Out of 1118, 800 belonged to his wife which she had earned as salary in U.S.A. and 318 belonged to his son in law, S. Rajasankar who went to Europe in September, 1988 for which he obtained F.T.S. of 500 out of which he saved 318.
Likewise, the learned Single Judge also found the purchase of gold biscuits by his wife has been properly explained and likewise, the purchase of the property by the wife from her unaccounted money and also found that the money belonged to his wife and she has made a clean breast before the Income tax Officer.
The accused justified these unaccounted money by examining himself as D.W.13 alongwith other witnesses as D.Ws.
Learned Single Judge also found that since the entire money has been admitted by his wife who had companye in witness box as DW 12 admitted that she earned this money by selling cycle rims and leather shoe uppers without any bill and this money belonged to her and she had made a clean breast before the Income tax authority and thereby she had accepted this unaccounted money being belonging to her.
1 t o 12.
Aggrieved against this, the present appeal was filed by the State, through Deputy Superintendent of Police, Vigilance.
A parallel criminal proceedings was also taken by the Department regarding the assets unearthed at the time of raid by the Income tax Department.
30 lakhs recovered from his house, it was urged that a sum of Rs.
The companyputer centre also generated funds.
The Government of Tamil Nadu initiated the disciplinary proceedings against the accused during February, 1994.
This reopening of the case was challenged by the accused petitioner by filing Crl.
At the time of her return from America, she brought cash, video camera and a companyputer.
During 1982 he went to America for studies alongwith his wife and children.
7453/1996 on 9.12.1996.
29 lakhs was unaccounted money obtained by sale of cycle rims and shoe uppers by the two companypanies without bill and that money belonged to her companypanies.
The prosecution examined 53 witnesses as PWs 1 to 53 and marked executed documents as Exs.
30 lakh seized by the Income tax Department as it belonged to the unaccounted money of his wife.
25,000/ in the name of third parties.
PW 53 Vishwanathan, Deputy Superintendent of Police, VAC, Chennai City 1, companytinued investigation at the instance of the Special Judge, Madras.
M.P. No.
2,00,000/ by Punjab National Bank.
The Income tax Authorities registered the case but subsequently they referred the matter on 15.2.1994 to the State Government to take departmental action against the accused.
So far as the recovery of the 1118 is companycerned, the learned Single Judge found the explanation satisfactory and his son in law has been found to be guilty by foreign exchange authorities and fined.
5,000/ , in default to undergo Rigorous Imprisonment for three months.
Later on he entered the Indian Administrative Service during 1970 and was allotted the Tamil Nadu Cadre.
He worked in various capacities under the Government of Tamil Nadu, like Managing Director of Tamil Nadu Chemical Products, Chairman of Tamil Nadu Leather Corporation and lastly he was appointed as a Secretary to the Health Department.
1 lakh, it was stated that amount belonged to PW 46 Girish A. Darvey.
However, the charges against the accused were dropped with a warning to the accused in disciplinary proceedings and the criminal case was also closed on mistake of facts.
According to prosecution on 13th September, 1993 and on 14th September, 1993 there was a raid by the Income tax Authorities in the house of the accused.
Therefore, learned Single Judge held that this unaccounted money did number belong to the accused.
including his wife and had also got the documents exhibited as D.1 to D.99 to substantiate his allegation.
30 lakhs, 7 gold biscuits weighing 819 grams, 1118 and certain documents regarding purchase of immovable properties and also fixed deposit receipts of the Bank for Rs.
Video camera and companyputer were revenue earning assets, his wife leased out the video camera for marriage companyerage and earned sufficient monies.
It was submitted that he had numberproprietary companytrol over sum of Rs.
After the permission by the Special Judge to reopen the case, the investigation was taken up by the PW 53, Viswanathan, he issued numberice to the accused, his wife and children to appear before him but they did number appear.
Hence, after hearing both the parties the learned Single Judge acquitted the accused and held that the money was number found from the possession of the accused and it was unaccounted money belonged to his wife who was dealing with various business and it was also pointed out that Income tax authorities had assessed the money in her account, it was also held that numberunaccounted money has been recovered from the exclusive possession of the accused, hence learned Single Judge acquitted the accused.
The accused denied the charges and according to the accused the assets which had been unearthed during the raid by the Income tax department was number his assets but they were the assets of his wife who was running certain companypanies.
The Special Judge discussed the evidence on record and found that the purchase of gold biscuits, US dollars and cash recovered from the house of the accused belonged the accused and source of money for the purchase of land also traceable to the accused.
According to him, his wife accompanied him when he went to America where she worked in a pharmaceutical companypany and also as a clerk in State Bank of India and she earned salaries and was also assessed by Income tax Department in America.
On the basis of the inquiry by PW 51, the criminal case against the accused was reopened as per the Order of the Special Judge passed in Crl.
Regarding the purchase of immovable properties, he stated that for the purpose of a factory for M s Silver Shoes P Limited, land was purchased at Vannagaram in the name of Rajasankar who happened to be the Managing Director of the companypany with the funds of the companypany.
The raid by Income tax Department yielded a huge amount of cash amounting to Rs.
P.1 to P.185.
Aggrieved against this Order, the accused preferred an appeal before the Madras High Court at Chennai and the learned Single Judge of the Madras High Court acquitted the accused of the aforesaid charges.
19 lakhs deposited in various branches of Punjab National Bank in Karnataka State, it was submitted that all these monies belonged to the companypanies owned by his wife and the same was deposited at the instance of his wife.
1 lakh kept in plastic bag and two packets of sweets found on the dining table at the time of raid, belonged to Girish and it does number belong to the accused.
She had started a companyputer companycern under the name and style of Tamil Nadu Computer Service by incurring a loan of Rs.
The accused, Inbasagaran obtained B.E. Hons.
Hence the present appeal has been filed against the order of acquittal by the Deputy Superintendent of Police, Chennai.
K. MATHUR, J. This appeal is directed against an order of the Madras High Court whereby the Single Bench of the High Court has acquitted the accused by its order dated 11th July, 2001 passed in Criminal Appeal No.231/2000.
M.P. 6812/1997 before the Madras High Court but it was dismissed by the Court on 24.2.1998.
Hence, the present appeal filed by the State of Tamil Nadu through the Deputy Superintendent of Police, Directorate of Vigilance and Anti Corruption, Chennai.
