Karnataka to Supreme Court: Jayalalithaa aide diverted cash

Karnataka public prosecutor and senior advocate B.V. Acharya on Thursday informed the Supreme Court that Sasikala, a close aide of Tamil Nadu chief minister Jayalalithaa, floated several fake companies to divert unaccounted money which were in turn utilized to purchase disproportionate assets. Making this submission before a bench of Justice Pinaki Chandra Ghose and Amitav Roy, counsel said Sasikala, Ilavarasi and Sudhagaran floated 52 companies, several of them on a single day and opened accounts in Indian Bank, Abhirama-puram branch in Chennai and deposited cash into the company accounts. Pointing out a chart indicating the flow of funds, counsel said there were 330 entries in the bank accounts exceeding deposit of Rs 50,000.

The funds were then utilized to purchase properties, he said and explained how the trial judge had dealt with this aspect. He said the claim of subscription amount of Rs. 14 crores by Namadhu MGR newspaper was an after thought. He alleged that documents were fabricated to make the deposits as if the amounts were received under a subscription scheme. The claim of subscription scheme was made first time in 1998 and this fact was even suppressed in the income tax returns.

Mr. Acharya submitted that both the trial court and Karnataka High Court had disbelieved the claim that the amounts were received under the subscription scheme. Systematic attempts were made to divert the amounts from the accounts of Jaya Publications and Namadhu MGR to other company accounts.

Pointing out that there was conspiracy among Jayalalithaa and other accused to amass wealth, he said the whole object of constitution of different companies was to purchase properties. Reading out the statement of witnesses before the trial court, Mr. Acharya explained how currency notes were taken to the bank in suit cases and bags and there was evidence to suggest that the money was deposited in banks at the instance of Sasikala. Arguments will continue on March 29 after the Holi festival vacation.