The Karnataka High Court on Thursday dismissed the bail petitions filed by S C Jayachandra, the suspended chief project officer of the State Highway Development Project.
Jayachandra had approached the high court seeking bail after he was arrested following an income tax department raid connected with illegal currency exchange racket.
Justice P S Dinesh Kumar rejected the bail applications filed by Jayachandra in cases registered by Enforcement Directorate (ED) and Anti-Corruption Bureau (ACB). On November 30, 2016 the income tax officials during raid on Jayachandra’s house found Rs 5 lakh in Rs 2,000 denomination notes besides other unaccounted-for wealth. Following this, ED officials arrested him in a money-laundering case. The CBI and the ACB too have registered cases against Jayachandra.
The I-T department during the raid had in all found Rs 27 lakh and Jayachandra has argued that the payment was made by flat buyers as advance sale consideration to Shaakya Constructions belonging to his wife and son.
The bench in the order has said, “If the amount of Rs 27 lakh was indeed a part of sale consideration of flat proposal to be sold by the construction company, the same would have been received...in the manner known to law … and would have been converted in accordance with law. The currency of Rs 27 lakh found in Jayachandra's premises does not appear to be legitimate.” The bench said that the explanation given by Jayachandra for Rs 27 lakh currency found on his premises is ‘unsatisfactory’.
The bench also took note of the fact that the Lokayukta had raided his house in 2008 and it was found that he had acquired assets disproportionate to his known sources of income by 102.69% between February 1, 1988 and December 18, 2008. The Lokayukta is awaiting approval for sanction from the state government to prosecute him in the case. Justice Kumar in the order said that it was not a fit case to be granted bail and rejected the bail applications.
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