IMPORTANT POINTS
Acquisition of wealth disproportionate to known source of income – Confiscated properties in name of a closed relative/spouse can continue to remain confiscated with State, upon death of public servant.

JUDGMENT :

SANJAY KAROL, J.

Leave Granted.

Criminal Appeal@ SLP (Crl) 7454 of 2025

2. This appeal at the instance of the State of Bihar takes exception to Criminal Appeal (SJ) No.662 of 2013, which was allowed in favour of the Respondent herein in terms of judgment dated 27th September 2023, setting aside attachment proceedings against the respondent on account of the fact that her husband, namely Ravindra Prasad Singh, the main accused in two FIRs viz., Vigilance P.S. Case No.52/2009 under Sections 7, 13(2) read with 13(1)(d), of the Prevention of Corruption Act, 1988¹[PC Act], and 409, 201, 120-B, Indian Penal Code 1860²[IPC] Vigilance P.S. Case No. 84/2009 under Sections 7, 13(2) read with 13(1)(e), P.C. Act, had passed away.

3. The period during which the husband of the respondent is alleged to have amassed disproportionate assets was between 28th June 1975 to 11th May 2009 to the tune of Rs.12,96,516/-, apart from several immovable properties and other valuables. A chargesheet was filed on 7th October 2009. The Act under which the present proceedings came to be before the High Court, came into effect on 8th February 2010. Notice was issued to both the respondent and her husband on 17th August 2012. Having considered the responses, the Authorised Officer, by order dated 5th August 2013 passed in Confiscation Case No.6 of 2012, ordered confiscation of the assets listed in Schedule A -1 and 2 and B of the petition. The reasoning of the Authorised Officer is as follows:

17. Now I will come to the defence, taken by O.P. No. 2 and O.P. No.1, regarding income of O.P. No. 2 generated through her skills in stitching, knitting, sewing etc. O.P. No. 2 is wife of O.P. No.1 the delinquent Govt. Servant. Admittedly she boasts of doing business in stitching, knitting, sewing etc. and earning huge amounts to the tune of Rs. 13,20,392/-during the check period and through her personal income and through other sources as detailed in para 10 and 11 of her rejoinder she invested Rs.13,16,818 out of which amounts of investment in purchase of land is Rs.9,85,700/- O.P. No.1 was a govt. servant and as such was subject to Bihar govt. Servant conduct Rules 1976 and rule 16(2) of which clearly stipulates that if any member of the Govt. servant’s family is engaged in any business or trade, he will inform about the same to the govt. Further rule 19(2) enshrines that no Govt. servant shall, without prior information to the Govt. acquire any immovable properties either in his name or in name of any of his family members. /further sub rule 4 of Rule 19 stipulates that State Govt. or concerned authority may be special or general order demand/force its employees to give detail about acquisition of movable and immovable properties by him or his family members and movable properties includes life Insurance Policies, annual premium of which exceeds Rs.30,000/-. Now in this case nothing has been said about compliance of aforesaid rules by O.P. No.1. Such huge landed properties were acquired by his wife in Patna district and New Delhi without any information to the Govt. Such huge amount of investment have been made by his wife in different L.I.C. Polices but no information was given to the govt. Sub rule (1) of Rule 19 requires that every Govt. servant on the date of his first appointment and thereafter on interval of every 12 months shall given declaration of his assets and liabilities in the prescribed from which includes declaration about both immovable and movable properties acquired by him or in name of his family members or through ancestral property. But O.P. No.1 is completely silent about compliance of the same. The O.P. No. 1 and 2 have been boasting of filing I.T. Return by O.P. No. 2 but surprisingly O.P. No. 1 is completely silent about filing of his I.T. Return or statement of income or T.D.S. (Form 16). Since he was a Govt. servant he must have been filing T.D.S. and I.T. Returns but why he has not filed any of this schedule of income tax or T.D.S.