SC stays proceedings against Jaya and Sasikala in evasion case

New Delhi, Jan 3 (UNI) The Supreme Court today stayed till further orders the proceedings against former Tamil Nadu Chief Minister J Jayalalitha and her close associate Sasikala Natarajan in a debt evasion case.

A bench comprising Justices B N Agarawal and P P Naolekar admitted the petitions filed by Jaya and Sasikala Natarjan and others challenging Madras High Court judgement dismissing their appeals seeking to quash the criminal proceedings pending against them in the court of judicial magistrate.

The petitioner had moved an application for discharge before the trial court which was dismissed, then they went to high court in appeal against the trial court order which was also dismissed.

The Income Tax department had initiated proceedings against the former Chief Minister and others for not filing Income Tax returns despite having taxable income and thereby evading their Income Tax liabilities which is a criminal offence.

According to the petitioner, till the assessment proceedings attain finality the prosecution against the petitioner firm cannot be initiated and in this case the petitioner firm namely Sasi Enterprises has been assessed having nil tax liability.

UNI