SC Grants Bail to Ex-Minister's Husband in Corruption Case Upon Rs 5 Crore Voluntary Deposit

The Supreme Court has directed the release of Tr A Babu, husband of former Tamil Nadu Minister Indirakumari, on bail after he voluntarily offered to deposit an enhanced amount of ₹5 crore as a gesture of repentance in a corruption case involving misappropriation of public funds.

A bench comprising Justices Vikram Nath and Sandeep Mehta affirmed the findings of guilt recorded by the trial court and upheld by the High Court. However, it agreed to entertain his appeal limited to the quantum of sentence.

The appellant was convicted for criminal misconduct under the Prevention of Corruption Act, 1988, as well as for criminal breach of trust and misappropriation of grant-in-aid funds amounting to ₹15.45 lakh. These funds were sanctioned for operating schools catering to “Severely Orthopedically Handicapped Children” and “Deaf” children.

The offences were allegedly committed between 1990 and 1996. The trial culminated with a judgment on September 29, 2001, wherein both the appellant and his wife were sentenced to five years of rigorous imprisonment. Indirakumari, who was then the Minister for Social Welfare and Nutritious Meals Scheme, passed away during the pendency of the joint appeal, which led to the abatement of her appeal. The High Court subsequently dismissed the appellant's appeal on September 5, 2024.

While issuing directions for his release on bail, the Supreme Court observed that the appellant is approximately 68 years old and that the criminal proceedings had continued for over two decades. Noting the appellant's willingness to deposit ₹5 crore unconditionally, including the ₹50 lakh already deposited, the Court observed:

“In the facts and circumstances and considering the fact that the appellant by way of repentance has volunteered to deposit an enhanced fine of ₹5 crores, we hereby direct that the appellant shall be released on bail subject to such terms and conditions as may be imposed by the trial court.”

The bench clarified that failure to deposit the full amount would result in automatic cancellation of the bail and the appellant would have to return to custody to serve the remainder of his sentence. The matter has been posted for compliance verification on July 14.

The prosecution alleged that two charitable trusts, M/s Mercy Mother India Charitable Trust and M/s Bharani Swathi Educational Trust, were created by Indirakumari and the appellant, with the appellant serving as lifelong managing trustee. The government, through the social welfare department, had sanctioned a sum of ₹15.45 lakh to these trusts as grant-in-aid. However, subsequent investigation revealed that no proper audit or inspection had been conducted prior to the release of funds, and the beneficiary schools for specially-abled children did not actually exist.

The Court further recorded:

“We find that so far as the findings of the trial court and the appellate court regarding the charges of criminal misconduct and criminal breach of trust and misappropriation attributed to Indirakumari are concerned, the same have attained finality because the appeal against conviction filed on behalf of the said accused has abated.”

During the hearing, the appellant’s counsel submitted that the appellant is repentant and, in a bid to demonstrate his bona fides, was willing to deposit the enhanced sum for the benefit of children in need of care and protection or in conflict with law, in alignment with the objectives of the Juvenile Justice (Care and Protection of Children) Act, 2015.

The Court’s order for interim bail is conditional upon the full deposit of the ₹5 crore amount, failing which custody will resume.

Case Title: Tr. A. Babu v. State of Tamil Nadu