Sasikala floated fake firms to divert money'
The claim of the subscription scheme was made for the first time in 1998 and this fact was suppressed even in the income tax returns.
New Delhi: Karnataka Public Prosecutor and senior advocate B.V. Acharya on Thursday informed the Supreme Court that Sasikala, close aide of Tamil Nadu Chief Minister Jayalalithaa, floated several fake companies to divert unaccounted-for money which was in turn utilized to purchase disproportionate assets.
Making this submission before a bench of Justice Pinaki Chandra Ghose and Amitav Roy, counsel said Sasikala, Ilavarasi and Sudhagaran floated 52 companies, several of them on a single day and opened accounts in Indian Bank, Abhiramapuram branch in Chennai and deposited cash into the company accounts.
Pointing out a chart indicating the flow of funds, counsel said there were 330 entries in the bank accounts exceeding the deposit of Rs 50,000. The funds were then utilized to purchase properties, he said and explained how the trial judge had dealt with this aspect. He said the claim of the subscription amount of Rs 14 crores by the Namadhu MGR newspaper was an afterthought. He alleged that documents were fabricated to make the deposits look as if the amounts were received under a subscription scheme.
The claim of the subscription scheme was made for the first time in 1998 and this fact was suppressed even in the income tax returns.
Mr. Acharya submitted that both the trial court and Karnataka High Court had disbelieved the claim that the amounts were received under the subscription scheme. Systematic attempts were made to divert the amounts from the accounts of Jaya Publications and Namadhu MGR to other company accounts.
Pointing out that there was a conspiracy among Jayalalithaa and other accused to amass wealth, he said the whole object of constituting different companies was to purchase properties. Reading out the statements of witnesses before the trial court, Mr. Acharya explained how currency notes were taken to the bank in suitcases and bags and there was evidence to suggest that the money was deposited in banks at the instance of Sasikala. Arguments will continue on March 29 after the Holi festival vacation.