‘Courts must be vigilant’: Madras HC reverses discharge of DMK ministers in disproportionate assets cases

The court’s decision marks a significant turn in the protracted legal battles that have seen multiple twists over the years. The cases were initially registered against the ministers and their associates in 2011 and 2012 under the All India Anna Dravida Munnetra Kazhagam government headed by the then Chief Minister J Jayalalithaa.

They were accused of amassing wealth disproportionate to their known sources of income during their tenures in the previous Dravida Munnetra Kazhagam (DMK) rule. The revision petitions were initiated by the HC itself.

The cases against Ramachandran, who served as Minister for Health and later as Minister for Backward Classes, and Thennarasu, the incumbent finance minister, had initially faced significant opposition from the Directorate of Vigilance and Anti-Corruption (DVAC). In July 2023, a special court for MP/MLA cases discharged Ramachandran, his wife R. Adhilakshmi, and their associate K.S.P. Shanmugamoorthy, accepting a closure report filed by the investigating officer, which concluded that no offence had been made out.

This closure report contradicted the original findings of the investigation, which alleged substantial accumulation of unexplained wealth.

Justice Venkatesh’s ruling dissected the procedural and substantive aspects of the case. He noted that the discharge by the special court was influenced by a supplementary report filed by the subsequent investigating officer after a change in the state’s political leadership in 2021. This supplementary report, termed as a “final closure report,” had cleared the accused of all charges, which was a stark departure from the DVAC’s earlier stance.

The HC also highlighted several discrepancies and procedural lapses in the supplementary investigation, observing that it appeared tailored to benefit the accused, given the previously established “shady transactions” involving large sums of money routed through various accounts to mask their origins.

Justice Venkatesh underscored the misuse of the statutory power of further investigation for collateral purposes. He cited the glaring contradiction between the earlier findings and the subsequent investigation, which essentially overturned the allegations of disproportionate assets without a credible basis.

The order referenced several key legal precedents that outline the scope and limitations of further investigation under Section 173(8) of the Criminal Procedure Code and emphasised that while the power of further investigation is well-established, its misuse to serve ulterior motives is unacceptable.

In setting aside the discharge order, the HC restored the cases to the special court for MP/MLA cases. Justice Venkatesh directed the trial court to frame charges but also made it clear that the trial must be conducted without being influenced by any observations made during the suo motu proceedings.

The judge directed the accused to appear before the special court and furnish a bond under Section 88 of the Code of Criminal Procedure. He also ordered the trial to be conducted on a day-to-day basis and completed as expeditiously as possible.

In the case of Thennarasu, who served as Minister for School Education during the DMK regime from 2006-2011, similar allegations were made. The DVAC had conducted searches and filed a case under the Prevention of Corruption Act (PCA). However, after taking note of a final report saying no offence was made out, the special court discharged him in December 2023.

Noting that the special court’s approach in discharging the accused was ex-facie illegal, Justice Venkatesh criticised it for failing to provide independent reasoning and “blindfolding itself” to facts.