Firms formed to siphon off "unlawful resources" of Jaya: Court

As many as 18 firms were formed in the 1991-96 period only with a view to siphoning off the "unlawful resources" accumulated by then Chief Minister Jayalalithaa, the special court in the disproportionate assets case against her and three others has held.
Tracing the maze of transactions, the court said, during the "check period" (1991-96), as many as 18 firms had come into existence but it was proved in evidence that none of them carried on any business then.
Special court judge John Michael D'Cunha said ten firms were constituted in a single day with the identical terms and conditions, even though none of them carried on business in terms of the said deeds.

At the beginning of the check period, Jayalalithaa and her close aide Sasikala were involved in only two concerns-- Jaya Publications and Sasi Enterprises.
In his verdict on Saturday last, the judge sent Jayalalithaa to four years in jail and slapped a fine of Rs 100 crore on her. She is presently lodged in Bangalore jail.
Sasikala, her relatives V N Sudhakaran, also Jayalalithaa's disowned foster son, and Elavarasi were also been sentenced to four years imprisonment, besides a fine of Rs 10 crore each.

"Large amount of funds were diverted to these (firms') accounts giving a clear indication that the firms were constituted only with a view to siphon off the unlawful resources accumulated by Jayalalithaa," the court said.

The judge said Sasikala and Sudhakaran started independent concerns in their names during the period. Not satisfied with this, even the defunct companies were bought by the accused, he said.
"...What has transpired in the evidence is that except buying large number of properties, no other business is carried on by any of these entities," the judge, whose verdict unseated Jayalalithaa as the Tamil Nadu Chief Minister, said.
Accounts were opened during the 1991-96 period and none of these firms or companies had their own accounts or independent resources, the judge said.
"The circumstances proved in evidence undoubtedly establish that these firms are nothing but extensions of Namadhu MGR and Jaya Publications. They owed their existence to the benevolence of Jayalalithaa and Sasikala and drew continued sustenance from the funds transferred to their accounts," he said.