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SC reverses acquittal of former TN minister in disproportionate assets case

A FIR was lodged in 2011 accused Nehru and his family of acquiring assets far beyond their means

Press Trust of India  |  New Delhi 

Tripods of television crew stand in front of the Indian Supreme Court building in New Delhi
Tripods of television crew stand in front of the Indian Supreme Court building in New Delhi. Photo: Reuters

In a setback to veteran K N Nehru, the Supreme has paved the way for further investigation into the alleged disproportionate assets of his son and set aside his exoneration in the case.

The apex has set aside the order of the Madras High exonerating Nehru, a former transport minister, and his wife terming their discharge pending investigation as "visibly-premature" and "unsustainable in as well as on facts".


Nehru, his wife Shanta and son Arun are accused of acquiring assets disproportionate to their known sources of during his tenure as the transport minister of between 2006 and 2011.

Currently an from the Tiruchirappalli West constituency, he has been a four-time legislator of the Dravida Munnetra Kazhagam (DMK) party.

"The impugned order directing the discharge of the respondents is hereby set aside and the order of the Trial vis-a-vis them is restored," a bench of Justices Arun Mishra and Amitava Roy said.

It directed the vigilance department to complete further investigation at the earliest so as to enable the trial to proceed in accordance with

The bench upheld the direction of High and the trial for further probe and said the probe agency should keep in mind "the seriousness of the charge and the avowed objectives of the anti-corruption involved and conduct the investigation as expected of it and submit its report as expeditiously as possible".

The apex allowed the appeal of the state government challenging the High order exonerating Nehru and his wife but affirming the direction for further probe against his son Arun.

"Having regard to the FIR, the explanation provided by the respondent No.1 (Nehru), the charge-sheet submitted as well as the indispensability of the scrutiny of the sources of of Arun and his assets, we are of the view that the courts below had rightly directed further investigation to verify the genuineness or otherwise of the source(s) of of Arun and his assets and the bearing thereof, if any, on the charge levelled against the respondents," it said.

The observed that the High Court, having endorsed the direction for further investigation vis-a-vis Arun, ought not to have recorded its findings of exoneration of Nehru and his wife at this stage.

"In fact, the discharge of the respondents flies in the face of the direction for further investigation into the affairs of Arun in order to verify the lawfulness or otherwise of his source of and his assets.

"In our estimate, in view of the correlation of the explanation provided by the respondent No.1 to the imputation of disproportionate assets and the probe ordered into the affairs of Arun, to say the least, the discharge of the respondents before the completion of the investigation is visibly premature," the bench said.

Nehru in his explanation about his said he had received the amount only from his son Arun and the latter had received remuneration for which he had paid TDS under the Tax Act and therefore the question of disproportionateness of his assets did not arise.

The said that the exoneration of Nehru and his wife pending investigation amounted to "prejudging the charge" against them.

"We have thus no hesitation to hold that the order of the High Court, discharging the respondents herein, pending the investigation against Arun, at this stage, is unsustainable in as well as on facts," the bench said.

Senior advocate Mukul Rohatgi, appearing for the state government, contended that on taking into account the materials on record, the High ought not to have discharged them at this stage while affirming further probe into the sources of of Arun.

He said the outcome of the further probe would have a vital bearing on the charge levelled against the accused and their discharge at this stage is wholly unwarranted.

Counsel appearing for Nehru and others said that the available materials do not substantiate the allegation and the discharge of the respondents are perfectly justified and does not merit any interference.

An FIR was lodged in 2011 against Nehru, his wife and son by the Deputy Superintendent of Police (vigilance & anti- corruption), Trichy, alleging that Nehru while serving as the transport minister had acquired assets in his name and in the names of his wife and son far beyond their known sources of

Before the check-period (May 13, 2006-March 24, 2011) both husband, wife and son had assets worth over Rs 2.83 crore which swelled to over Rs 18.52 crore at the end of the period.

After the charge sheet was filed against them, the accused moved trial seeking discharge but the ordered a further probe into the assets and of Arun.

The High on December 19, 2013, exonerated Nehru and his wife but affirmed further probe into the assets and of Arun.

First Published: Sun, July 23 2017. 12:30 IST
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