Can birthday gifts be legal sources of income, Karnataka asks SC in DA case

“Can the Rs. 1.5 crore received from (party) cadres as gifts on birthdays be said to be lawful source of income? It can’t be,” Karnataka’s counsel told a Supreme Court bench of justices P.C. Ghose and Amitava Roy.

February 24, 2016 08:38 pm | Updated November 17, 2021 03:09 am IST - New Delhi

An AIADMK supporter offers a gold ring to a newborn at the Government Hospital in Tiruchi to mark the 68th birthday of Tamil Nadu Chief Minister J. Jayalalithaa on Wednesday. Photo: A. Muralitharan

An AIADMK supporter offers a gold ring to a newborn at the Government Hospital in Tiruchi to mark the 68th birthday of Tamil Nadu Chief Minister J. Jayalalithaa on Wednesday. Photo: A. Muralitharan

Noting that some political leaders are considered as “demigods” by their followers, the Karnataka government on Wednesday asked the Supreme Court whether money allegedly received from party cadres as “birthday gifts” can be categorised as a legal source of income.

This was part of the second day of hearing before a Bench of Justices P.C. Ghose and Amitava Roy on appeals filed against the acquittal of Tamil Nadu Chief Minister Jayalalithaa and three co-accused in the disproportionate assets case.

“Can Rs. 1.5 crore received from [party] cadres as gifts on birthdays be said to be lawful source of income,” senior advocate Dushyant Dave, for Karnataka, asked.

If so, Mr. Dave, contended such a defence would open the doors for a free-for-all for politicians to escape criminal liability under the Prevention of Corruption Act, saying the “gifts” were a manifestation of the reverence cadres felt for their leaders.

“These leaders are like demigods. They command enormous power. They have the capacity to subvert the system to their advantage,” Mr. Dave said.

On the question of the loan of Rs. 15 crore allegedly taken by Jaya Publications, Mr. Dave, assisted by Special Prosecutor B.V. Acharya and Karnataka State counsel Joseph Aristotle, said no intimation of the loan was given to the authorities during the check period between 1991 and 1996. Delayed intimation given to the Income Tax after a period of five years was just an “after-thought”.

“A public servant is required to intimate the authorities about loans taken or properties acquired,” Mr. Dave argued.

This saw the Bench ask whether there is any legal requirement of rule in Karnataka which mandates a public servant to disclose his assets while in office.

The clinching argument

The value of disproportionate assets was Rs. 2.82 crore and this value was not enough to convict them on charges of corruption, said Justice C.R. Kumaraswamy in his verdict while disagreeing with the verdict of the Special Court, which had computed the value of DA at Rs. 53.6 crore.

AIADMK chief keeps her plans under wraps

In a statement, Ms. Jayalalithaa said the verdict gave her immense satisfaction and proved that she was innocent. She warned her political opponents to end their conspiracies against her and thanked the partymen and people who prayed for her. But she did not reveal any of her plans. > Read more

What the SPP said

“Counsel for the accused were allowed to make oral arguments for nearly two months, but no prosecutor authorised by Karnataka was present during such arguments,” B.V. Acharya said. > Read more

Comment

>Trial, errors and judgment - Sanjay Hegde After a long and convoluted progress through the courts, Ms. Jayalalithaa has finally been acquitted by the High Court. But this might not be the end of the morality play, with another appeal looking likely.

>Amma’s apogee moment - A.R. Venkatachalapathy History, the Marxist cliché goes, repeats itself twice — usually as a tragedy and then as a farce. But sometimes it repeats itself as a bigger tragedy. As the implications of the Karnataka High Court’s blanket acquittal of former Tamil Nadu Chief Minister Jayalalithaa are thrashed threadbare, some crucial cultural questions remain to be explored.

>Where loyalty trumps all - Meera Srinivasan Loyalty, in a sense, has been the hallmark of Tamil Nadu politics. A person’s political commitment is primarily judged, in political circles, by her steely resolve to stick to a leader no matter what he or she is accused of. So what if critics label their leaders corrupt, authoritarian or power-hungry? “None like our leader,” they will vouch, with unmistakable earnestness.

How DA came to account for less than 10% of income

  • Vigilance probe’s findings: Construction costs: Rs.27,79,88, 945 Marriage expenses: Rs.6,25,04,222
  • High Court’s findings: Construction costs: Rs.5,10,54,060 Marriage expenses: Rs.28,68,000
  • Exaggerated value: Construction costs: Rs.2,69,34,885 Marriage expenses: Rs.6,16,36,222
  • Total assets: Vigilance estimate - Exaggerated value Rs. 37,59,02,466
  • Disproportionate assets: Total assets - Total income
  • Rs.37,59,02,466-Rs.34,76,65,654 = Rs.2,82,36,812
  • Rs.2,82,36,812 x 100/Rs.34,76,65,654=

The Hindu Editorial

  • > A sensational comeback The Karnataka HC’s judgment absolving Ms. Jayalalithaa of the grave charge that she amassed wealth illegally is undoubtedly a resounding political victory for her.
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