Mumbai: 20 years after death, sales tax officer acquitted of graft charges by Bombay High Court

Bombay High Court. File Pic

The Bombay High Court recently acquitted a sales tax officer, dead for almost two decades, in a 1985 corruption and refunds conspiracy case, 25 years after his conviction.

Tax officer Suresh Kagne's widow and son had in 2015 stepped into his shoes to continue with the appeal filed in 1996, against the conviction--an 18-month jail and Rs 26,000 fine--stated a report in The Times of India.

In September 1996, a Solapur special trial court had convicted Kagne and two other officials, relying largely on the testimony of an approver - son of a co-accused, an oil mill owner. He had been granted pardon at the end of the trial after 92 of the 94 prosecution witnesses were examined, "obviously to fill up lacunae in the case", said the HC in its judgment by Justice S K Shinde.

Kagne was tried with two other public servants and a registered ‘dealer' of an oil extraction business and his son. The charges included conspiracy to making and securing a false claim of refund of sales tax, admissible to those engaged in business of extracting oil from oilseeds and ‘tel ghanis' (mini oil mills). A co-accused had granted registration to the dealer's son. Kagne had allegedly "without following due process accepted the claims for set-off" of Rs 2.6 lakh, thus causing a loss to the state exchequer.

The HC, after analysing the evidence, did not find the approver's testimony reliable.

In 2013, the HC, in a judgment by then Justice M L Tahaliyani, had acquitted two of Kagne's co-accused, also sales tax officials, while allowing their separate appeals against their conviction. He had said, "Basically, the approver has to be a reliable witness… It is possible, that the approver may have accepted pardon when he realized some heat may turn on him. It is highly risky to rely on him as a witness…he had filled up a wide gap in the prosecution case."

"The ultimate aim of trial is quest for truth and the prosecution case has to stand on its legs…The judge has to be circumspect… Had the (trial court) judge used his discretion judiciously, he probably would not have tendered pardon to a person of highly dubious character…and the prosecution would have failed miserably," said the HC now, quoting from and relying on the 2013 judgment.

The departmental enquiry found the officials guilty of "dereliction of duty for failing to follow procedure".

The rest of the evidence pointed to "procedural irregularity'' and "not sufficient" to establish guilt, said justice Shinde, allowing Kagne's appeal. The fine, if any paid, must be refunded to Kagne's legal heirs directed the HC.

In March 2015, Justice Abhay Thipsay had, on submissions of their advocate Harshad Bhadbhade, permitted the widow and son to continue with his appeal as legal heirs. The HC had observed that since his punishment also included a fine, the appeal would not abate with his death.

The law allows near relatives -- lineal descendants -- to apply within 30 days, and get permission from court to continue an appeal if a convict dies pending appeal.