Kerala High Court orders vigilance authorities to release ₹47 lakh seized from residence of IUML leader KM Shaji

The Kerala High Court recently directed the State vigilance authorities to release ₹47.35 lakh seized in 2021 from the residence of Indian Union Muslim League (IUML) leader and former Member of Legislative Assembly (MLA), KM Shaji [KM Shaji v State of Kerala & Anr.]. .Justice Ziyad Rahman AA reasoned that even if there were prima facie concerns over whether Shaji held disproportionate wealth, such allegations of corruption can only be proved after a full-fledged trial and a man cannot be deprived of his money in the meantime. .“Depriving a person of his articles or amounts on mere accusations until the same are properly proved through the fact-finding mechanism of the trial is not justifiable,” underscored the High Court..Therefore, the Court directed the money seized from the IUML leader's residence should be released back to him while the disproportionate assets case trial against him was still pending. While ordering the release of the money, the judge also ordered Shaji to furnish a bank guarantee for the amount to be released..The judge explained that in ordering such a release under Section 451 of the Code of Criminal Procedure (CrPC) the seized article is only being entrusted so that it can be preserved until the trial is over. The person so entrusted has an obligation to return the article to the court as and when required, the Court said. The title or the right of such person on such article has not been decided, the Court added. .The High Court was considering a petition filed by Shaji challenging the decision of a Special Court dismissing his application to release the seized amount.A complaint had been filed alleging that Shaji had amassed wealth that was disproportionate to his known and legal sources of income.The vigilance authorities claimed that Shaji had amassed wealth beyond his known sources of income by a margin of 166% from June 1, 2011, to October 31, 2020.Thereafter, the vigilance conducted a search in Shaji's residence and seized 16.21 grams of gold, and ₹ 47,35,500. A large part of this money was found concealed in the bedroom under a cot.This seizure prompted Shaji to file an application to release the seized amount. After a Special Judge dismissed the application, Shaji approached the High Court for relief. .The High Court agreed with the Special Court's prima facie concerns that Shaji's explanation regarding the seized money was questionable.All the same, it opined that the seized money could not be withheld when the corruption trial against Shaji was still pending. The Court also noted that even after the amounts were seized from Shaji's residence, no one else had claimed the amount.“The said amount is included in the income tax return of the petitioner as well, by paying tax for the same, even though such income tax return was filed after the seizure,” the judge added..Therefore, it granted Shaji interim relief and ordered the vigilance authorities to release the seized money back to him provided he furnishes a bank guarantee for the said amount. The High Court also ordered the Special Court to ensure that Shaji keeps the bank guarantee valid until the corruption case against him is disposed of..Advocate Babu S Nair appeared for Shaji while Special Government Pleader A Rajesh appeared for the State authorities. .[Read Order]