Writ petition against MP's illegal Income Tax Evasion by Hiding Huge Property not Amounts to PIL: Jharkhand HC dismisses Petition [Read Order]

Somnath Chatterjee, the petitioner filed writ petition to order or direction constituting a Special Investigation Team (SIT) headed by a retired judge of the Court and comprising of a Superintendent of Police (SP) rank officer each from the Income Tax Department (ITD), Directorate of Enforcement (ED), Central Bureau of Investigation (CBI), and Jharkhand Police to investigate into the various allegations of disproportionate assets beyond known sources of income, corruption and various illegal activities against Shri Dhullu Mahto (Member of Parliament, Lok Sabha, Dhanbad) in a time bound manner.

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The petitioner had approached the Court by way of a Public Interest Litigation being W.P.(PIL) No. 6438 of 2011 seeking investigation into, inter alia, the disproportionate assets beyond the known sources of income of Shri Dhullu Mahto. After hearing the said PIL, this Court disposed of the same by an order dated 30.03.2016 observing that the authorities would carry out the necessary investigation into the petitioner's allegations after giving an opportunity of hearing to Shri Dhullu Mahto.

When no action was taken by the investigating authorities/agencies on the petitioner's representations/ complaints, he filed one Civil Miscellaneous Petition being C.M.P. No. 184 of 2018 seeking status report of the investigation, if any, carried out as per this Court's order dated 30.03.2016 in W.P.(PIL) No.6438 of 2011.

The Income Tax Department filed an affidavit dated 10.02.2020 stating that after preliminary investigation into the complaints of the petitioner, several income tax violations and a few benami properties were discovered. The affidavit further stated that necessary action as per the Income Tax Act had been initiated against Shri Dhullu Mahto and his associates and that the investigation into the benami properties was being carried out by the Benami Property Unit, Patna.

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It is the further case of the petitioner that when the Income Tax Department did not provide any detail on the status of the pending investigation to the Court as per its own affidavit dated 10.02.2020, thE Court vide its order dated 20.06.2022 sought the status of the said pending investigation. The Income Tax Department filed a supplementary counter affidavit on 06.07.2022 indicating that investigation was still being carried out.

The petitioner sent a representation dated 06.08.2022 to the Enforcement Directorate informing them about an additional 670 crores worth of Benami properties/assets of Shri Dhullu Mahto. He also filed an interlocutory application furnishing the said information before this Court. The Court vide its order dated 26.08.2022 directed the respondents to file their reply to the said interlocutory application.

The Income Tax Department filed its affidavit dated 15.09.2022 stating that a preliminary investigation regarding the veracity of the petitioner's complaint/representation dated 06.08.2022 was being carried out by the department. The Court dismissed the C.M.P. by noting that the petition was only a wagering attempt by the petitioner.

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Shri Saryu Roy, Former Finance Minister for the State of Jharkhand and presently a Member of the Jharkhand Legislative Assembly conducted a press conference wherein he pointed out that Shri Dhullu Mahto has been associated with several private companies which are involved in money laundering through coal scam in Dhanbad District. He sought for an independent investigation into the matter by the Enforcement Directorate.

The writ petitioner, claiming himself to be the social worker, has no personal interest, direct or indirect, has filed the instant Public Interest Litigation for the welfare and benefit of public at large. It appears from the allegation as has been stated in the pleading in the instant Public Interest Litigation that Shri Dhullu Mahto, a sitting Member of Parliament from Dhanbad in the State of Jharkhand, that he has amassed huge property beyond the known sources of income.

It has been mentioned that the petitioner though in the earlier filed PIL, WPC and CMP had impleaded Shri Dhullu Mahto as a party respondent, however, in the instant PIL, the Petitioner has not impleaded Shri Dhullu Mahto as a party Respondent, and on the score of non impleadment of the affected party as a party respondent, several PILs have been dismissed by the Court.

The Court, however, has passed order holding the petition not a Public Interest Litigation. Counsel for the ED has further submitted that the ED has already registered ECIR on the basis of 7 FIRs instituted against said Shri Dhullu Mahto.

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Counsel for the Income Tax Department has submitted that the notice under Section under Section 143(3) of the Income Tax Act, 1961 has already been issued and the Income Tax Department is in the process of reassessment and the proceeding to take appropriate decision on the basis of the statutory requirement.

A division bench of Justice Sujit Narayan Prasad and Justice Rajesh Kumar viewed that once the Court has expressed its view holding the nature of allegation as has been made against Shri Dhullu Mahto as not the Public Interest Litigation, hence, if that order has been referred to raise the issue of maintainability of the present writ petition, then such issue cannot be said to be baseless.

It was held that the nature of allegation not to be a Public Interest Litigation has not been challenged before higher forum and, as such, the same has attained its finality. The court held that the present writ petition is not maintainable and the same is accordingly dismissed.

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