Supreme Court: showing gold-limit circulars does not explain asset possession

The core issue was whether showing government circulars regarding permissible gold limits is sufficient to explain the possession of such assets under the Prevention of Corruption Act.

Who it concerns: The matter concerns the State of Bihar (Appellant) and Phulpari Kumari (Respondent). The Bench consisted of Justice K.V. Viswanathan and Justice Arun Palli.

What the court decided

• The Court held that merely showing press releases or circulars permitting the holding of gold does not amount to accounting for the possession of assets in a prosecution under Section 13(1)(e) read with Section 13(2) of the Prevention of Corruption Act, 1988.
• The Court set aside the impugned order of the High Court of Judicature at Patna dated 14th May, 2026.
• The Court restored the order of cognizance dated 28th January, 2021, passed by the Special Judge, Vigilance, Patna.
• The Court directed that the case shall proceed from the stage of the restored cognizance order.
• The Court allowed the respondent to initiate any proceedings available in law before the Trial Court, noting that such proceedings would be decided uninfluenced by the observations in the High Court or the present order.
• The Appeal was allowed.

Also in the document

• The Court found the reasoning of the High Court to be 'totally untenable'.
• The Court clarified that entitlement to possess gold is distinct from the requirement to account for it in a disproportionate assets prosecution.