To retain ill-gotten property, heirs need to pay market price - Supreme Court

The Supreme Court has added a stringent clause to the well-settled law that ill-gotten properties of a convicted corrupt public servant would be put up for public auction, proceeds of which go the government.

It said if the heirs of the convicted official want to retain the illgotten property, they have to pay its market price and not the cost price, or participate in the public auction and be the highest bidder.

One N Ramakrishnaiah was convicted under the P reve n - tion of C o r r u p - tion Act by a Hyderabad court and sentenced to undergo simple imprisonment for one year and pay a fine of Rs 20,000.

The trial court also identified four properties which were acquired through corrupt means and ordered their auction. The accused challenged this order before the Andhra Pradesh high court, which dismissed the appeal. However, during the pendency of the appeal before the HC, Ramakrishnaiah died and the sentence of imprisonment stood abated.

However, when the time came for public auction of the four properties, the son and daughter of the accused moved the HC pleading that they be permitted to deposit the entire amount of Rs 6.37 lakh and allowed to retain the house and other properties.

Source:- The Times of India 24 Oct. 08 P.13 New Delhi
For any query:- legalpoint@aol.in