HC stays I-T proceedings against Jaya, Sasikala

CHENNAI, Nov 26: The Madras High Court has stayed the proceedings pending before the Additional Chief Metropolitan Magistrate, Economic Off...

CHENNAI, Nov 26: The Madras High Court has stayed the proceedings pending before the Additional Chief Metropolitan Magistrate, Economic Offences Court-II, Egmore, Chennai, against former Chief Minister J Jayalalitha and her close confidant N Sasikala with regard to Income-Tax arrears. The HC has also allowed Sasikala to leave Chennai and pulled up the Enforcement Directorate for vengeful attitude’. Justice A Raman granted the stay on Tuesday and posted the matter for further hearing after two weeks. The stay will be valid till then.

The IT department filed a complaint against Sasi Enterprises, in which Jayalalitha and her close friend N Sasikala are partners, alleging that the firm had not filed its income-tax return for the assessment year 1991-92. The proceedings are pending before the EO court in Egmore.

In her counter-affidavit, Jayalalitha submitted that in response to notices from the department, she sent a reply on Oct 23, 1996 stating that from the time she became a partner in the firm in May, 1990, she did not participate in its management. Her status should be described only as a dormant or sleeping partner.

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In spite of the reply, the department launched prosecution against her and Sasi Enterprises. She had sent an appeal to the Commission of Income-Tax (Appeals) against the assessment made under Sec. 144 of the IT Act. Another appeal was also sent for the assessment years 1992-93 and 1993-94 and orders on these appeals have been reserved. While so, the department hurriedly filed the complaint. If the prosecution is allowed to go on, she would suffer and undergo the ordeal of trial. The criminal prosecution is premature and it would be a sheer harassment, she said and prayed for quashing the proceedings. Her interim plea is to stay them.

The judge has also stayed similar proceedings pending against N Sasikala, a close friend of Jayalalitha in the EO court for the assessment year 1993-94.The High Court has also relaxed the conditions imposed on Sasikala, while she was granted bail 11 months ago in a FERA violation case.

Justice Raman, who permitted her to leave Chennai, accused the Enforcement Directorate (ED) of adopting a vengeful attitude’.

He observed that Sasikala has been complying with the bail conditions, about which there is no dispute. The ED is not able to state how relaxation of the conditions will, in any manner, affect its position.

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In these days, when so much is talked about violation of human rights, the department has to take a more humanistic view of the matter. It should not adopt a vengeful attitude.

It cannot proceed to deprive the valuable rights of the petitioner, the judge said and permitted Sasikala to leave City limits. He, however, said that Sasikala shall inform the department about her movements outside the city limits.

The judge was passing orders on a relaxation petition from Sasikala. She submitted that she wants to take treatment at Sri Ramachandra Medical College Hospital, which is situated outside city limits and to visit temples in her native place.