19 March 2024 Corruption >> Criminal Law   |   FIR >> Criminal Law  

The Supreme Court of India recently rejected the discharge plea of a public servant and his son accused of amassing disproportionate assets.

The Case:

• The appellants, Puneet Sabharwal and his father R.C. Sabharwal, were public servants residing in New Delhi. R.C. Sabharwal held the position of Additional Chief Architect in the New Delhi Municipal Corporation.
• An FIR was filed against them alleging corruption. The prosecution claimed that R.C. Sabharwal had accumulated assets exceeding his known sources of income. His son Puneet was accused of aiding him in this offense.
• The prosecution provided a detailed list of the assets allegedly acquired through corrupt means. They also presented evidence of R.C. Sabharwal's income from his salary and other legitimate sources.
• Furthermore, the prosecution highlighted R.C. Sabharwal's expenditures and bank balances alongside his family's assets. They argued that the accused could not explain the discrepancy between his income and the amassed wealth.
• To strengthen their case, the prosecution presented evidence suggesting a criminal conspiracy between the father and son. This included assets held in trusts and firms where the sole beneficiary was Puneet, despite R.C. Sabharwal handling all financial matters.

The Defense Argument:

The defense relied on orders passed by the Income Tax Appellate Tribunal (ITAT) to argue for the discharge of the accused. These orders reopened assessments for certain years, suggesting discrepancies in income calculations.

The Court's Reasoning:

The Supreme Court dismissed the defense argument, reasoning that:

• ITAT orders and subsequent assessments cannot be considered conclusive proof in a criminal case.
• The scope of income tax proceedings differs significantly from criminal prosecution under the Prevention of Corruption Act.
• Previous judgments cited by the defense were deemed inapplicable due to the distinct nature of those cases.

Conclusion:

The Supreme Court upheld the High Court's decision to reject the discharge plea based on the ITAT orders. The court emphasized the different purposes and standards of income tax proceedings and criminal prosecutions.

  Income Tax Act, 1961    Prevention of Corruption Act, 1988