NARAYAN MISHRA Vs. STATE OF BIHAR

JUDGEMENT

(1.) This confiscation proceeding is initiated on the application filed on behalf of State of Bihar supported with affidavit under Section 13 of the Bihar Special Courts Act, 2009 for confiscation of properties shown and identified in the application as well as the properties shown during investigation in supplementary petition in Schedules-A and B total worth valued at Rs. 1,40,04,217.00 in form of movable and immovable properties acquired and possessed by appellant No. 1 either in his name or in name of his wife, sons and daughters-in-law during check period of 1.1.1984 to 8.2.2007. Originally a case F.I.R. No. 1/2007/SVU, Patna dated 6.2.2007 was registered against him under Section 13(2) read with 13(1)(e) Prevention of Corruption Act, 1998 with the allegation that he possessed disproportionate asset worth Rs. 56,62,679/-. At that time he was Director General-cum-Commandant General (Home-guard) and Fire Services, Bihar, Patna. He was an IPS Officer of 1969 Bihar Cadre, joined service on 23.7.1969. Explanation for disproportionate asset given on behalf of delinquent was found not plausible or satisfactory. Appellant No. 1 originally comes from Village Sasanpurusotampur, P.O. and P.S. Barchana, Tahsil Danmandal, District-Cuttack (Jaipur), Orissa. His father (ate Krishna Chandra Mishra is said an ordinary farmer and purohit which was his livelihood. He died on 27.3.1993. He was maintaining two saving bank accounts at his native village, one in Danmandal Post Office and another in Indian Overseas Bank, Jaipur. Balance of the account was below Rs. 1,200/- at the time of his death which is still in tact. He was also maintaining MD account with Indian Overseas Bank, Jaipur in which the balance was Rs. 1,00,192.50 at the time of his death. He was having some agricultural land also having some income. Appellant No. 1 is his sole son and married to appellant No. 2. Appellant No. 2 remained a house wife. It is said that he started to purchase plots of land and flats in his own name and in name of his wife since the year 1984. House was constructed over plot at 36, Ved Nagar, Rukunpura, Patna and Nepali Nagar Sector-3, Digha. One plot of land was purchased at Singhani, Hazaribagh and a house was existing at native village in Orissa. After the death of his father on 27.3.1993 till 31.3.2000 or till 27.6.2000 he opened HUF SB A/c No. 3604 with Central Bank of India, CBD, Belapur, Mumbai--

(2.) Further it is said that appellant opposite party No. 1 submitted first income-tax Return of HUF on 26.6.2000 while he opened HUF Saving Bank A/c No. 3604 in Central Bank of India, CBD, Belapur, Navi Mumbai on 27.6.2000 a day after return. He made deposit by cash to the tune Rs. 1,55,000.00 in between 27.6.2000 to 16.11.2000. He opened another HUF saving bank A/c No. 5401000086030 with D-Mat A/c 19079838 with HDFC Bank, Vashi, Navi Mumbai in the next month i.e. on 10.7.2000 in which he deposited Rs. 5,65,000.00 by cash in between 10.7.2000 to 15.11.2000 within five months of the day from the date of submission of Return without giving satisfactory account of his pecuniary resources. Further it is said that Narayan Mishra prepared balance sheet as on 31.3.1993 by showing balance of matured NSCs of Rs. 2,11,575.00 which were encashed prior to death of his father and face value of unmatured NSCs were of Rs. 1,20,000.00 including NSCs worth Rs. 50,000.00 purchased in name of his eldest son Subrat Mishra who was fully dependent on him and NSCs worth Rs. 30,000.00 for which Subrat Mishra was the nominee. Narayan Mishra was the only nominee of face value of NSCs worth Rs. 40,000.00. Therefore, the matured amount of NSCs encashed for Rs. 2,11,575.00 by his father during his lifetime cannot be treated in HUF A/c of Narayan Mishra because there is no evidence on record to establish the transfer of matured amount of Rs. 2,11,575.00 to the account of Narayan Mishra or HUF account of Narayan Mishra. So, the balance sheet is fabricated document. Further it is said that deposit of Rs. 7,20,000.00 in two HUF account by cash as indicated above against total income of Rs. 4,78,190.50 and that too after two years from the date of death of his father is not in consonance with the amount inherited from ancestral properties. At best that can be accepted for Rs. 4,78,190.50 as income of Narayan Mishra HUF which is also doubtful because there is nothing on record to link the cash deposit of Rs. 7,20,000.00. On the basis of said fabricated balance sheet as on 31.3.1993 the balance sheet ending on 31st March, for the year 1994 to 2000 showing balance of Rs. 9,76,607.73 as on 31.3.2000 was prepared and submitted before the 1st HUF return for the assessment year 2000-01 (financial year 1999 to 2000) is also a fabricated balance sheet, specifically it is said that income shown in the HUF Return does not match with known source of income from ancestral properties. Therefore, the income accrued out of purported HUF Account from transaction of shares, other income, dividends etc. may not be taken as income of HUF.

(3.) Further it is said that during investigation known source of income, expenditure and assets of Narayan Mishra, his wife Kanchan Mishra, his sons Subrat Mishra, Satyabrat Mishra and Deobrat Mishra and Smt. Pooja Mishra wife of Satyabrat Mishra and Smt. Rita Pandey Mishra wife of Subrat Mishra had been calculated and analysed.