Madras High Court Acquits Wife & Chartered Accountant In BSNL Disproportionate Assets Case
Law Firm News Correspondent
2 Sept 2026 12:52 PM IST
The Madras High Court has acquitted the wife and Chartered Accountant of a deceased former BSNL official in a disproportionate assets case, holding that the prosecution failed to prove criminal conspiracy, forgery or abetment and had not properly considered the wife's independent income and Income Tax Returns while assessing the alleged disproportionate assets.
The prosecution alleged that former BSNL official K. Raju had amassed assets disproportionate to his known sources of income to the tune of ₹58.86 lakh during the check period between October 1991 and September 2004. The Trial Court had convicted the accused under the IPC and Prevention of Corruption Act provisions.
Allowing the appeals, Justice G.K. Ilanthiraiyan noted that the wife (A2) was independently carrying on business through R.V. Enterprises and had disclosed her income and properties in Income Tax Returns filed even before registration of the FIR. The Court observed that the prosecution neither disputed the genuineness of those returns nor examined any Income Tax Officer to challenge them.
The Court further found that the prosecution failed to properly account for A2's business and rental income, adopted an unreliable valuation method for certain properties, and duplicated several heads of domestic expenditure while calculating the alleged disproportionate assets.
Rejecting the charges of conspiracy and abetment, the Court held that mere relationship with a public servant or ownership of property in a relative's name is insufficient to attract criminal liability in the absence of evidence showing instigation, conspiracy or intentional aid.
The Court also found that the forgery allegations relating to certain gold purchase receipts were not proved. As regards the Chartered Accountant (A3), the Court held that he had merely rendered professional services based on records furnished by his client and there was no evidence showing his involvement in any conspiracy or fabrication of documents.
Accordingly, the High Court set aside the convictions and sentences, acquitted the surviving appellants of all charges, directed refund of any fine amount paid and cancelled their bail bonds.
Case Title: K. Raju (Deceased) & Ors. v. State rep. by Inspector of Police, SPE: CBI: ACB, Chennai
Case No.: Criminal Appeal Nos. 662 & 674 of 2016.
Counsels:
Mr. A. Ashwinkumar appeared for the appellant in Crl.A.No.662 of 2016.
Mr. R. Rajarathinam, Senior Counsel, appeared for the appellant in Crl.A.No.674 of 2016, assisted by Mr. S.R. Ramachandran.
Mr. K. Srinivasan appeared as Special Public Prosecutor for the CBI.
