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Suspension of Commercial Tax Officer Based on News Report: HC Directs Non-Enforcement of Order

Case Law Details

TaxGuru Citation
2024 taxguru.in 3071
Case Name
Dhanaraju. M. K. Vs Commissioner Of Commercial Taxes (Karnataka High Court)
Date of Judgement/Order
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Dhanaraju. M. K. Vs Commissioner of Commercial Taxes (Karnataka High Court)

In the case of Dhanaraju. M. K. vs Commissioner of Commercial Taxes, Karnataka High Court addressed a series of writ petitions challenging orders of suspension issued against several officers of the Commercial Tax Department. These suspensions were triggered by allegations aired in a news report by Asianet Suvarna News, alleging habitual acceptance of illegal gratification by officers. The orders were swiftly executed on November 25, 2022, and in subsequent days, based solely on this news broadcast.

The petitioners contended that their suspensions were unjustified, primarily because they were based on unverified allegations from a news program rather than on substantive evidence or due process. They argued that the suspensions were premature and lacked legal merit. Initially, some petitioners obtained interim relief from the High Court against the suspension orders, and subsequently, the Karnataka State Administrative Tribunal (SAT) reviewed the cases and upheld the suspensions in an order dated October 5, 2023.

During the course of the legal proceedings, additional developments emerged. On August 3, 2023, FIRs were registered by the Lokayukta police based on a sting operation related to the allegations made in the news report. These FIRs were challenged by the petitioners in the High Court under Article 226 of the Constitution of India and Section 482 of the Criminal Procedure Code (CrPC). The High Court, in a judgment dated October 6, 2023, quashed the FIRs, citing non-compliance with Section 17-A of the Prevention of Corruption Act, 1988.

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 19,652

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