IMPORTANT POINT
When the accused does not explain the circumstances of tainted money found with him, presumption u/s 20 is not rebutted. Prosecution case stands completely established.

Judgment

Uday Umesh Lalit, J.

1. This appeal by special leave challenges the judgment and order dated 13.05.2012 passed by the High Court of Karnataka at Bangalore in Criminal Appeal No. 1501 of 2007 setting aside the judgment of acquittal rendered by the trial court and convicting the appellant under Sections 7, 13(1)(d) read with Section 13(2) of the Prevention of Corruption Act, 1988 (the Act, for short) and sentencing him to undergo rigorous imprisonment for a period of 1 year on each of the aforesaid two counts and also to pay fine of Rs.5,000/-and Rs.10,000/-on the aforesaid two counts respectively, in default whereof to undergo further simple imprisonment for periods of 2 months and 3 months respectively. The sentences were ordered to run concurrently.

2. This matter arises out of complaint Ext. P -8 lodged by PW-3 Basavraju at 3:00 p.m. on 3.12.2005 with Lokayukta Police Station. It is the case of the prosecution that the Complainant and three others were granted anticipatory bail by the Additional Sessions Judge, Mandya and in connection therewith he had gone to Malavalli Rural Police Station for executing the bail bond. The appellant who was then working as Sub Inspector of Police allegedly demanded Rs.1,000/-from each of those persons in order to permit them to sign the bail bonds and avail the facility. It was alleged that said Complainant had gone to the Police Station along with surety Siddaraju and met the appellant but the appellant refused to permit him to execute the bail bond. On 1.12.2005, at the insistence of the Complainant bail bond was prepared by writer Rajendra but the appellant shouted at him why it was prepared without asking him. The Complainant thereafter approached Circle Police Inspector Ganagadhar Swami and sought his assistance but was told to take necessary steps open to him, whereafter the complainant lodged complaint Ext. P-8.

3. After recording the complaint, PW-6 D. Jairamu, Police Inspector working in Mysore Lokayukta Police Station took necessary steps to lay the trap. Two independent witnesses namely PW-1 K.L. Umashankar and PW-2 B.K. Nagaraju both working in the office of the Joint Director of Horticulture, Mandya, were associated with the trap proceedings as Panchas. After giving necessary instructions, two currency notes of Rs.500/-each given by the complainant were applied Phenolphthalein powder and their numbers were also noted. The party then proceeded to Malavalli Rural Police Station. However, since the appellant was not in the Police Station, the proceedings were deferred. The next day being a holiday, the concerned persons assembled in Lokayukta office on 5.12.2005 at 8:00 a.m. The Currency Notes were again checked and powder was applied. PW-3 Complainant was given a Micro Phone Recorder and was instructed to switch it on as he would enter the Police Station. PW-3 Complainant was to be accompanied by PW-1 Umashankar while the other Panch PW-2 Nagaraju was to be with the raiding party.

4. PW-3 Complainant and PW-1 Umashankar entered the Police Station and found the appellant sitting there. It is the case of the prosecution that pursuant to the demand made by the appellant, PW-3 complainant made over those two currency notes of Rs.500-each. The appellant received the Currency Notes in his right hand and kept the same in the hip pocket of his trouser. PW 3 Complainant and PW1 Umashankar came out of the Police Station and gave requisite signal whereafter the raiding party came inside and apprehended the appellant. Upon chemical examination, his right hand turned pink. The money was recovered from the possession of the appellant under a panchnama. The appellant on being asked, gave his explanation in writing Ext. P-3 to the effect that the money was thrust into his pocket forcibly. After due investigation, the appellant was tried for the offences punishable under Section 7 and 13(1)d read with 13(2) of the Act.

5. The prosecution examined seven witnesses including two Panchas as PW-1 an