SC to hear plea against quashing of PC kin case

New Delhi, April 16

The Supreme Court today agreed to hear the Income Tax Department’s appeal challenging the Madras High Court order which quashed criminal prosecution against senior Congress leader P Chidambaram’s family members under the Black Money law. The top court, however, refused to stay the order of the high court.

A Bench of Chief Justice Ranjan Gogoi and Justice Sanjiv Khanna issued notice to Chidambaram’s wife Nalini and their son Karti, who is contesting Lok Sabha election from Sivaganga constituency in Tamil Nadu.

The Bench also sought reply from Karti’s wife Srinidhi and others in the case. The HC had quashed criminal prosecution initiated by the I-T Department under the Black Money Act against the three.

Solicitor General Tushar Mehta, appearing for the department, sought stay of the HC order of November 2, 2018, on various grounds, including that it could be used by other accused to avoid criminal prosecution in cases related to black money.

To this, the Bench said granting stay at this stage without hearing the other side would amount to allowing the appeal of the I-T department. The Solicitor General further said if the stay was not granted then other HCs might quash the criminal prosecution against similarly placed accused under the black money law and urged that the November HC order should not be treated as a precedent.

The Bench said it would not be treated as a precedent as the HC would be cognisant of the fact that the SC was seized of the matter and was scrutinising the Madras High Court order. The issue relates to alleged non-disclosure of overseas assets and bank accounts held by the trio.

According to the I-T Department, the three had not disclosed a property they jointly owned in Cambridge in the UK worth Rs 5.37 crore in their returns which amounted to an offence under the Black Money (Undisclosed Foreign Income and Assets) Act and Imposition of Tax Act.  — PTI

‘Non-disclosure’ of assets

• The case relates to alleged non-disclosure of overseas assets and bank accounts held by Chidambaram’s kin
• PC’s wife Nalini, son Karti and his wife are accused of not disclosing in I-T returns property worth Rs 5.37 cr held in UK
• Karti is also accused of not disclosing an overseas bank account and investments made in Nano Holdings LLC, USA