Reddy loses Bagepalli MLA post with false claim of ‘nil’ tax dues when he actually owed over ₹1.3 crore

S.N. Subba Reddy loses Bagepalli MLA post for falsely declaring 'nil' tax dues while owing over ₹1.3 crore.

Declaring “nil” tax dues in the assets and liabilities statement filed with his nomination papers - despite owing ₹1.3 crore in property tax arrears since 2018 - cost S.N. Subba Reddy his MLA post.

This false declaration is one of the main reasons based on which his election from the Bagepalli constituency was declared invalid and was set aside by the High Court of Karnataka in its February 16 verdict while terming his action of making false declaration as “corrupt practice” under Section 123(2) of the Representation of Peoples Act, 1951.

“False statement or a false declaration, that too made on oath, inherently carries with it corrupt, deceitful, dishonest and fraudulent intent, which once proved, neither requires further probe of its innocence nor the need of testing the same through the lens of substantiality,” observed Justice M.G.S. Kamal in his verdict.

With this verdict, Mr. Reddy ceases to be a MLA unless the Supreme Court stays this verdict as the High Court had declined to keep its verdict in abeyance to enable him to approach the apex court.

Apart from this false disclosure, the court also found that Mr. Reddy had neither disclosed his sources of income nor the details of his business entities/concern - R and R Bar and Restaurant; Bhagini Residency; Srinivasa Wines; Bhagini Palace; Wholesale Liquor Proprietorship Concern – and their corresponding current account balance details. Similarly, there is no disclosure with regard to business being run by his wife.

The court also found that he had not declared some of the land besides not disclosing nature of some of the land as he had declared them as “agriculture land” even though they were converted for non-agricultural purposes before the filling of nomination papers.