On 28 October 2026, the Supreme Court (Justice Sanjay Kumar and Justice Sanjeev Sachdeva) dismissed an appeal against conviction in a disproportionate-assets (DA) case from Kerala and explained how the burden of proof works under Section 13(1)(e) read with Section 13(2) of the Prevention of Corruption Act, 1988 (pre-2018 provisions). The judgment is reported as 2026 INSC 1172. It concerned a former Sub-Registrar, with a check period from 1 January 1993 to 16 January 2001 and alleged DA of about Rs 5.25 lakh, or 51.88% of income.
What was decided
The prosecution must first prove the known sources of income and the assets and expenditure attributable to the public servant. “Known sources” means sources known to the prosecution after a thorough and lawful investigation. Once a disproportion is shown, a prima facie case is established and the evidentiary burden shifts to the accused.
The prosecution need not disprove every hypothetical source of income; requiring a roving inquiry would, in the Court’s words, “impose an impracticable burden upon the prosecution”. Because undisclosed income is within the accused’s special knowledge, Section 109 of the Bharatiya Sakshya Adhiniyam, 2023 (corresponding to Section 106 of the Evidence Act) applies. The explanation must be worthy of acceptance, not merely plausible. The Court added that the 10% margin from Krishnanand Agnihotri is not a rigid rule.
The conviction was upheld, interim bail was vacated and the appellant was given two weeks to surrender.
Why it matters
DA cases are a frequent tool of the CBI, UP Vigilance Establishment and state anti-corruption bodies against serving and retired officers. The ruling confirms that once the agency’s calculation shows a gap, the outcome largely turns on the quality of the accused’s explanation and documents.
For officers and their families, the period to build that explanation is long before a chargesheet: during the vigilance enquiry and investigation, when asset returns, gifts, agricultural income, loans and family members’ earnings can be documented.
Practical points
- Keep annual property returns, intimations and approvals under the Conduct Rules complete and consistent.
- Maintain evidence of family members’ independent income and of loans, inheritance and gifts.
- Scrutinise the agency’s valuation of assets and its treatment of expenditure; errors here affect the percentage.
- Do not rely on the 10% margin as an automatic safe harbour.
Sources: Verdictum, 29 October 2026; Indian Kanoon, judgment of 28 October 2026.
For a confidential discussion on disproportionate-assets investigations, see Prevention of Corruption Act, CBI and vigilance matters.
General legal information only; not legal advice or solicitation.
