Known Sources of Income in Disproportionate-Assets Cases after 2018
The amended explanation to Section 13 states that known sources of income means income received from a lawful source and intimated in accordance with applicable law, rules or orders. Both legality and required disclosure matter.
The check period
Investigators ordinarily define a period during which assets, income and expenditure are compared. Opening assets, income earned, expenditure incurred and closing assets must be calculated consistently. A distorted check period can materially affect the result.
Income is not every receipt
Loans, sale proceeds and transfers between accounts are not automatically income. A genuine loan may explain acquisition but creates a liability. Sale proceeds may merely convert one asset into another. Double counting must be avoided.
Family income
The spouse or family member’s independent earnings should be included where real, documented and used for the household or asset. At the same time, a nominal business or unexplained cash introduced through relatives may be rejected on evidence.
Intimation requirement
Tax returns, property statements, service declarations and departmental permissions are relevant. Late disclosure after investigation may carry less weight, but a technical reporting breach should not substitute for analysis of whether the source was lawful and available.
Burden and fairness
The prosecution must present a coherent foundational computation. The accused then has an opportunity to satisfactorily account for the disproportion. Courts should state accepted and rejected items with reasons rather than rely on a bare percentage.
A disproportionate-assets case is ultimately an accounting prosecution with a mental element. Accuracy, consistent classification and lawful source evidence determine its strength.
Sources
Prevention of Corruption Act, 1988, Section 13(1)(b) and explanation: https://indiacode.nic.in/bitstream/123456789/9317/1/corruptiona1988-49.pdf
Supreme Court of India, State of M.P. v. Awadh Kishore Gupta, (2004) 1 SCC 691.
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