Relief for Karti, wife as HC quashes I-T proceedings

Allowing the criminal revision petitions filed by Karti and Srinidhi challenging the dismissal of the discharge petition filed before the Special Court, Justice N Satish Kumar quashed the prosecution after holding that the proceeding initiated was premature. He also held that the Deputy Director of Income Tax Department was not the competent authority to initiate the reassessment proceedings.

The Department had contended that the couple had received the money in cash for the sale of property at Muttukadu in 2015 but failed to disclose it in their I-T returns. Based on this, Deputy Director, I-T Department, Chennai, filed a complaint on September 12, 2018, against the couple before the economic offences court and the case was subsequently transferred to the special court for offences by MPs and MLAs.

The High Court had earlier rejected Karti’s plea challenging the transfer of the case to the special court, setting aside his submission that he was neither an MP nor an MLA on the date of the alleged offence or when the complaints were lodged. The court had held that the Supreme Court has directed all pending cases to be transferred to the special court. Later, the special court had dismissed the discharge application moved by the duo and directed the prosecution to proceed with framing charges against the accused.

The couple then moved the High Court challenging the dismissal and obtained an interim stay against the prosecution from framing charges against him and his wife.

Now, the prosecution bid against the former finance minister’s son and his wife has been quashed.