Jaya DA case: How K’taka HC’s BAD arithmetic led to acquittals

The Karnataka high court’s blunder in arithmetic led to the acquittal of the accused in the DA case.

The Supreme Court which ordered the conviction of Sasikala dealt with the arithmetic blunder made by the Karnataka high court while passing an order of acquittal. The Supreme Court termed it as a fundamental blunder while striking down the order of the high court.

Where the high court had erred:

Calculation error: The method of calculating DA is wrong. If all the findings of the high court is accepted in toto, then the amount of DA is Rs 14.38 crore i.e. 41.3% and not Rs 282 crore i.e. 8.12% as held by the high court.

[#SasikalaConvicted: SC says HC made fundamental arithmetic blunder]

Arithmetic error: While totalling loans as income, the high court has committed an arithmetic error to the tune of 13.50 crore. If this arithmetic alone is error corrected, then the disproportionate asset comes to Rs 16.32 crore, i.e. 76.7%.

[Sasikala convicted, ordered to be taken into custody]

On the basis of finding of high court: Rs 14.38 crore. On the basis of finding of high court , correction of the other mistakes in arithmetic, admissions of accused and disallowing gifts as income:

Omission of expenses- Corrected: Rs 14.38 crore
Totaling error-Corrected: Rs 13.50 crore
Admission Reg valuation of construction: Rs 3.5 crore
Admission Reg business income of Jaya publication: Rs 2.84 crore
Gift- which is illegal: Rs 1.5 crore
Disproportionate assets : Rs 35.73 crore
Income will have to be: Rs 16.92 crore
Disproportionate assets: Rs 35.73 crore
Percentage of DA: Rs 35.73 crore x 100 = 211.09%

The Supreme Court's observation:

Therefore if the above corrections are carried out, the disproportionate assets will be:
On the basis of finding of high court: Rs 14.38 crore. On the basis of finding of high court, correction of the other mistakes in arithmetic, admissions of accused and disallowing gifts as income:

While noting the loans availed by the respondents from different firms and companies, as named therein, the High court did, however limit itself only to the loans borrowed from the nationalised banks, as referred to hereinabove, but wrongly totalled the amounts to inflate figure to Rs 24.17 crore which in fact ought to have been Rs 10.67 crore on a correct arithmetic.

The high court, thereafter, adjusting Rs 5.99 crore, i.e. the income quantified by the DVAC added Rs 18.17 crore (Rs 24.17 crore - Rs 5.99 crore) to the income of the respondents.
In any case however even assuming that the arithmetic undertaken by the high court is correct, it having accepted the value of assets to be Rs 66.44 crore, the remainder would still value at Rs 43.75 crore.

In other words, in calculating the disproportionate assets, the amount of Rs 43.75 crore has to be applied even if there is a reduction in value of assets by Rs 22.69 crore i.e. (Rs 29,82,71,254.32 -- Rs.5,10,54,060).

According to the prosecution, the high court scaled down the marriage expenditure from Rs 6.45 crore, as quantified by the prosecution to Rs 28.68 lakh, though the trial court had computed the same to be Rs 3 crores. Arithmetically thus, the high court endorsed the total expenditure to be Rs 5.40 crore instead of Rs 11.56 crore quoted by the prosecution.

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