- 1 - HC-KAR NC: 2025:KHC-D:7619 CRL.A No. 100081 of 2024 C/W CRL.A No. 100082 of 2024 CRL.A No. 100083 of 2024 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 13TH DAY OF JUNE, 2025 BEFORE THE HON'BLE MR. JUSTICE VENKATESH NAIK T CRIMINAL APPEAL NO.100081 OF 2024 C/W CRIMINAL APPEAL NO. 100082 OF 2024 CRIMINAL APPEAL NO. 100083 OF 2024 IN CRL.A.NO.100081 OF 2024 BETWEEN: SMT. SAROJINI W/O. L. B. NILOGAL, AGED ABOUT 58 YEARS, W/O. LAKSHMAPPA NILOGAL, R/O. NO.217, 8TH CROSS, BAPUJI LAYOUT, VIJAYANAGARA, BENGALURU-560040. …APPELLANT (BY SHRI G. N. NARASAMMANAVAR, ADVOCATE) AND: THE STATE OF KARNATAKA, BY LOKAYUKTA POLICE, REPTD. BY SUPERINTENDENT OF POLICE, KARNATAKA LOKAYUKTA, KOPPAL. …RESPONDENT (BY SHRI SANTOSH MALAGOUDAR, SPECIAL COUNSEL) THIS CRIMINAL APPEAL IS FILED U/S.11 OF THE CRIMINAL LAW AMENDMENT ORDINANCE, 1944, SEEKING TO CALL FOR RECORD IN SPL.CC(PC).NO.01/2017 PENDING ON THE FILE OF PRL. DISTRICT AND SESSIONS JUDGE AND SPL. JUDGE LOKAYUKTHA AT KOPPAL VIDE ANNEXURE-A AND SET ASIDE THE IMPUGNED ORDER DATED 10.03.2023 VIDE ANNEXURE-A, PASSED BY THE PRL. DISTRICT AND SESSIONS JUDGE AND SPL. JUDGE LOKAYUKTHA AT KOPPAL IN Digitally signed by RAKESH S HARIHAR Location: High Court of Karnataka, Dharwad Bench - 2 - HC-KAR NC: 2025:KHC-D:7619 CRL.A No. 100081 of 2024 C/W CRL.A No. 100082 of 2024 CRL.A No. 100083 of 2024 SPL.CC(PC).NO.01/2017 AND ALLOW THE APPLICATION PREFERRED BY THE APPELLANT BEFORE THE PRL. DISTRICT AND SESSIONS JUDGE AND SPL.JUDGE LOKAYUKTHA AT KOPPAL IN SPL.CC (PC) NO.01/2017, DATED 29.01.2018, VIDE ANNEXURE-B AND CONSEQUENTLY DIRECT RELEASE OF MOVABLE ARTICLES PRAYED BY THE APPELLANT AND ETC. IN CRL.A.NO.100082 OF 2024 BETWEEN: SRI. VINAYAKA NILOGAL, AGED ABOUT 35 YEARS, S/O. LAXMAPPA B. NILOGAL, R/O. NO.217, 8TH CROSS, BAPUJI LAYOUT, VIJAYANAGARA, BENGALURU-560040. …APPELLANT (BY SHRI G. N. NARASAMMANAVAR, ADVOCATE) AND: THE STATE OF KARNATAKA, BY LOKAYUKTA POLICE, REPTD. BY SUPERINTENDENT OF POLICE, KARNATAKA LOKAYUKTA, KOPPAL. …RESPONDENT (BY SHRI SANTOSH MALAGOUDAR, SPECIAL COUNSEL) THIS CRIMINAL APPEAL IS FILED U/S.11 OF THE CRIMINAL LAW AMENDMENT ORDINANCE, 1944, SEEKING TO CALL FOR RECORD IN SPL.CC(PC).NO.01/2017 PENDING ON THE FILE OF PRL. DISTRICT AND SESSIONS JUDGE AND SPL. JUDGE LOKAYUKTHA AT KOPPAL VIDE ANNEXURE-A AND SET ASIDE THE IMPUGNED ORDER DATED 10.03.2023 VIDE ANNEXURE-A, PASSED BY THE PRL. DISTRICT AND SESSIONS JUDGE AND SPL. JUDGE LOKAYUKTHA AT KOPPAL IN SPL.CC(PC).NO.01/2017 AND ALLOW THE APPLICATION PREFERRED BY THE APPELLANT BEFORE THE PRL. DISTRICT AND SESSIONS JUDGE AND SPL.JUDGE LOKAYUKTHA AT KOPPAL IN SPL.CC (PC) NO.01/2017, DATED 29.01.2018, VIDE ANNEXURE-B AND CONSEQUENTLY DIRECT RELEASE OF MOVABLE ARTICLES PRAYED BY THE APPELLANT AND ETC. - 3 - HC-KAR NC: 2025:KHC-D:7619 CRL.A No. 100081 of 2024 C/W CRL.A No. 100082 of 2024 CRL.A No. 100083 of 2024 IN CRL.A.NO.100083 OF 2024 BETWEEN: SRI. LAKSHMAPPA @ LAXMAPPA NILOGAL, AGED ABOUT 64 YEARS, S/O. BHEEMAPPA @ BHIMAPPA NILOGAL, R/O. NO.217, 8TH CROSS, BAPUJI LAYOUT, VIJAYANAGARA, BENGALURU-560040. …APPELLANT (BY SHRI G. N. NARASAMMANAVAR, ADVOCATE) AND: THE STATE OF KARNATAKA, BY LOKAYUKTA POLICE, REPTD. BY SUPERINTENDENT OF POLICE, KARNATAKA LOKAYUKTA, KOPPAL. …RESPONDENT (BY SHRI SANTOSH MALAGOUDAR, SPECIAL COUNSEL) THIS CRIMINAL APPEAL IS FILED U/S.11 OF THE CRIMINAL LAW AMENDMENT ORDINANCE, 1944, SEEKING TO CALL FOR RECORD IN SPL.CC(PC).NO.01/2017 PENDING ON THE FILE OF PRL. DISTRICT AND SESSIONS JUDGE AND SPL. JUDGE LOKAYUKTHA AT KOPPAL VIDE ANNEXURE-A AND SET ASIDE THE IMPUGNED ORDER DATED 10.03.2023 VIDE ANNEXURE-A, PASSED BY THE PRL. DISTRICT AND SESSIONS JUDGE AND SPL.JUDGE LOKAYUKTHA AT KOPPAL IN SPL.CC(PC).NO.01/2017 AND ALLOW THE APPLICATION PREFERRED BY THE APPELLANT BEFORE THE PRL. DISTRICT AND SESSIONS JUDGE AND SPL. JUDGE LOKAYUKTHA AT KOPPAL IN SPL.CC (PC) NO.01/2017, DATED 16.02.2018, VIDE ANNEXURE-B AND CONSEQUENTLY DIRECT RELEASE OF MOVABLE ARTICLES PRAYED BY THE APPELLANT AND ETC. THESE APPEALS ARE COMING ON FOR HEARING ON IA, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: - 4 - HC-KAR NC: 2025:KHC-D:7619 CRL.A No. 100081 of 2024 C/W CRL.A No. 100082 of 2024 CRL.A No. 100083 of 2024 ORAL JUDGMENT (PER: THE HON'BLE MR. JUSTICE VENKATESH NAIK T) Heard Sri. G. N. Narasammanavar, learned counsel for the appellants and Sri S.B.Malagoudar, learned Special counsel for respondent. 2. The appellant-Smt.Sarojini W/o L.B.Nilogal has filed Criminal Appeal No.100081/2024, the appellant- Vinayaka Nilogal filed Criminal Appeal No.100081/2024 and the appellant-Lakshmappa @ Laxmappa Nilogal filed Criminal Appeal No.100083/2024 under Section 11 of the Criminal Law Amendment Ordinance, 1944, praying to set- aside order dated 10.03.2023 passed by learned Prl.District and Sessions Judge, Koppal in Spl.CC (PC) 1/2017 and to allow the application filed under Section 451/457 of Cr.P.C R/w Section 5, 22 of P.C.Act, 1988 and Section 132 A of Income Tax Act seeking for release of the properties in favour of the appellants. - 5 - HC-KAR NC: 2025:KHC-D:7619 CRL.A No. 100081 of 2024 C/W CRL.A No. 100082 of 2024 CRL.A No. 100083 of 2024 3. Brief facts of the prosecution case are that; On an information/complaint, the Lokayukta officers have conducted raid in the house of accused/appellants and an inventory was prepared, the bank locker at Bengaluru is opened and the articles were seized. The appellant in Crl.A.No.100081/2024 is the wife of the accused and she is having small scale business and also loans availed from banks and private persons. The lokayuktha police issued prohibitory orders to the manager restraining from operating their bank accounts. The bank accounts of the appellants are seized, which caused great hardship to the appellants. Further, the lokayuktha police have seized documents from the house of appellants. There are 17 documents, which include NSC certificates and other gold and silver articles seized in the house of accused at Badami and Bengaluru. Thus, in all 30 items weighing 97.95 grams of gold ornaments were also seized and the same are kept in the locker No.10 of the State - 6 - HC-KAR NC: 2025:KHC-D:7619 CRL.A No. 100081 of 2024 C/W CRL.A No. 100082 of 2024 CRL.A No. 100083 of 2024 Bank of Bikaner and Jaipur, Gandhinagar Branch, Bengaluru. 4. Learned counsel for the appellants contended that the golden ornaments were given to the appellant- Sarojini at the time of her marriage. The gold and silver articles were required for daily use of the appellant. The appellants are ready to execute indemnity bond and they undertakes to furnish those articles at the time of trial. Hence, prayed for allowing the appeals. 5. Sri Santosh B.Malagoudar, learned Special counsel appearing for the Lokayukta contended that charge has been framed against the accused and now the matter is set-down for trial. At this juncture, the appellants have filed applications for release of the gold, silver articles and other documents, which is not permissible under law. 6. Perused the material available on record. - 7 - HC-KAR NC: 2025:KHC-D:7619 CRL.A No. 100081 of 2024 C/W CRL.A No. 100082 of 2024 CRL.A No. 100083 of 2024 7. The Lokayukta Police conducted raid on the house of accused and seized gold, silver articles and other documents from the house of accused. The allegation that there is a disproportionate of assets i.e., 83.18% excess properties owned by the accused. It is an admitted fact that the wife of accused is a house-maker. Now she is claiming gold, silver articles and other documents. Since the charge has been framed by the trial Court and the matter is set-down for trial. If gold and silver articles and other documents are released in favour of appellants, it would hamper the trial and trial will be postponed for in- definite period. The matter pertains to the year 2015 and the matter is not concluded till date. The primary concern is to present the accused from transferring assets that are allegedly disproportionate to his known source of income. At this juncture, the appellants have failed to provide compelling evidence of their legitimate origin and non- involvement in the alleged crime. I am satisfied that, the article/Bank Accounts seized are appears to be potential - 8 - HC-KAR NC: 2025:KHC-D:7619 CRL.A No. 100081 of 2024 C/W CRL.A No. 100082 of 2024 CRL.A No. 100083 of 2024 evidence during the trial. Thus, seized assets are held as evidence to prove the disproportionate assets charge. 8. The prosecution used them to demonstrate the discrepancy between the accused known income and the value of his assets. Therefore, keeping the assets in the Court’s custody helps to prevent the accused from tampering with, destroying or concealing them, which could hinder the Court. 9. Hence, there is no merit in the appeals, accordingly are dismissed. 10. In view of submission made by learned counsel for the appellants, the trial Court is directed to expedite the trial. Sd/- (VENKATESH NAIK T) JUDGE AM /CT-AN List No.: 1 Sl No.: 14