Karnataka High Court acquits Jayalalithaa in disproportionate assets case

Bengaluru: In a major shot in the arm for former Tamil Nadu Chief Minister J Jayalalithaa, which paves the way for a dramatic political comeback as chief minister of the southern state, the Karnataka High Court on Monday acquitted the AIADMK supremo in a disproportionate assets case that has dragged on for 19 years.

Pronouncing the verdict in a jam-packed court at exactly 11 am, Justice C R Kumaraswamy also acquitted the AIADMK chief’s close aide Sasikala Natarajan and her relatives J Elavarasi and V N Sudhakaran, the AIADMK leader’s foster son whom she had disowned.

Within minutes of the High Court clean chit  - and despite Section 144 being imposed to prevent protests in case the judgement went against the AIADMK leader - victory celebrations broke out outside the Bengaluru High Court complex at the Cubbon Park gate where hundreds of her fans and supporters including several Tamil Nadu-based lawyers and party workers appeared, bursting firecrackers, shouting slogans and breaking into dance while waving posters of the larger than life former film star. Similar scenes were played out, outside Jayalalitha’s Poes Garden home and across the state of Tamil Nadu.

The Karnataka High Court judgement came following an appeal against the judgement of the Special Court Judge John Michael D'Cunha who had on September 27 2014, held the AIADMK supremo and the three others guilty of corruption and awarded four years jail term, due to which she was disqualified as an MLA, and stepped down as chief minister. The judge had also slapped a fine of Rs 100 crore on her and Rs 10 crore each on the three
others.

Expected to assume the reins of office in Fort St George, the judgement comes exactly one year ahead of Assembly elections in Tamil Nadu amid widespread speculation that the AIADMK leader who must get re-elected within the next six months, may call for early elections.

Karnataka government could appeal

In a sign that the verdict would not go unchalleneged,  B.V. Acharya, (the former advocate general) the recently appointed Special Public Prosecutor in the Jayalalithaa case said that the state government of Karnataka is the sole prosecutor, which can appeal before the SC.

Mr. B V Acharya  said the prosecution case had been “seriously prejudiced” in the disproportionate assets case against former Tamil Nadu CM Jayalalithaa and three others, as the state of Karnataka and SPP appointed by it was denied an opportunity to convince High Court through oral arguments.

Mr Acharya said he was appointed as SPP after the Supreme Court order which said that appointed Public Prosecutor can file written submission within one day and there was no chance for oral arguments.

“So High Court judge could not give me an opportunity ...the total effect is that the state of Karnataka and the Public Prosecutor appointed by it was denied an opportunity to convince High Court judge through oral arguments. This has seriously prejudiced the case of the prosecution,” he told reporters after the High Court acquitted Jayalalithaa and three others.

“Once, the trial was shifted, the Tamil Nadu government lost its authority over the case,” he said, adding that he will give his opinion to the state government after going through the judgment.

Wedding cost + construction expenses = Prosecution mix-up

In a detailed verdict running into 919 pages, the high court has said, “The percentage of disproportionate assets (DA) is 8.12%. It is relatively small. In the instant case, the DA is less than 10% and it is within permissible limit. Therefore, accused are entitled for acquittal. When the principal accused, Jayalalithaa has been acquitted, the other accused who have played a lesser role are also entitled for acquittal.”

The high court in its finding has recorded that the total income of Jayalalithaa, her firms and companies is Rs 34,76,65,654 and that she possessed DA amount of Rs 2,82,36,812 while declining to accept the case of the prosecution that she had DA of Rs 66.65 crore or the DA amount of Rs 53.6 crore as per the special court.

The high court while arriving at the percentage of DA amount, has removed the exaggerated value of cost of construction and marriage expenses, and has even said that the trial court has erred in not considering the loans as income.

“The prosecution has mixed up assets of accused, firms and companies and also added the cost of construction Rs 27,79,88,945 and marriage expenses at Rs 6,45,04,222 and valued the assets at Rs 66,44,73,573.”

The court has also said that the value of apparels and slippers and so on are of insignificant value. Insofar of Oscar winner composer A.R. Rahman, and Mandoiln Srinivas connection in the case, the court has said that they performed ‘free of cost’ at the marriage reception of V.N. Sudhakaran, foster son of Jayalalithaa. The court has also set aside the order of the trial court relating to confiscation of the properties both movable and immovable.

In respect of income tax, and loans, the court said that the trial court has ignored the income tax proceedings as minimum evidentiary value. “The trial court has not appreciated the evidence in a proper perspective. Though the trial court in its judgment mentioned that the accused availed loan by the Indian Bank, it has not considered the same as income. Therefore, the trial court has erred in not considering the loans as income.” If the witness gives different statements at different stages, it is unsafe to place reliance on them, high court said.