In my previous post, I explained the numbers behind Jayalalitha's acquittal. Basically, assets got valued downwards, while income and liabilities got re-estimated upwards.
There are 2 major issues that arise from the numbers:
1. There is a totalling error of Rs. 13.5 crores in liabilities on page 852. Adjusted for this, explainable assets fall from Rs. 34.76 crores to Rs. 21.26 crores. Meanwhile, unexplained income rises from Rs. 2.82 crores to Rs. 16.32 crores. So, unexplained assets are 76.76% of explained. Not to put too fine a point to it, this is somewhat above the 10% threshold.
2. The court has added loans to income. Loans are not income. If a person has some assets and some loans, they need to be netted off to examine whether or not the (net) assets are disproportionate. Let us for a while ignore the arithmetic error in preceding para, but group the loans of Rs. 18.17 crores properly. The assets then fall from Rs. 37.59 crores to Rs. 19.42 crores. Meanwhile, income falls from Rs. 34.76 crores to Rs. 16.59 crores. The difference of Rs. 2.83 crores is 17% of known sources of income, not 8.12%
There are 2 major issues that arise from the numbers:
1. There is a totalling error of Rs. 13.5 crores in liabilities on page 852. Adjusted for this, explainable assets fall from Rs. 34.76 crores to Rs. 21.26 crores. Meanwhile, unexplained income rises from Rs. 2.82 crores to Rs. 16.32 crores. So, unexplained assets are 76.76% of explained. Not to put too fine a point to it, this is somewhat above the 10% threshold.
2. The court has added loans to income. Loans are not income. If a person has some assets and some loans, they need to be netted off to examine whether or not the (net) assets are disproportionate. Let us for a while ignore the arithmetic error in preceding para, but group the loans of Rs. 18.17 crores properly. The assets then fall from Rs. 37.59 crores to Rs. 19.42 crores. Meanwhile, income falls from Rs. 34.76 crores to Rs. 16.59 crores. The difference of Rs. 2.83 crores is 17% of known sources of income, not 8.12%
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