How a corruption case against an engineer fell flat owing to a misclassification

A corruption case against a railway engineer and his wife collapsed after an investigation error by the CBI misclassified a sentimental gift as a financial asset, ToI reported on August 19. The error, involving a hand-me-down property gifted to their son, eventually led to their acquittal, as the court found that the CBI failed to prove the couple's assets exceeded their income, said the report (by Ram Sundaram).

Judge S Ezhil Velavan highlighted major mistakes in the investigation against KSSVP Murthy Raju, a deputy chief engineer in the railways, and his wife K Pushpavalli. The case, which spanned over a decade, accused the couple of possessing disproportionate assets totaling Rs 54.6 lakh.

The CBI meticulously looked at the couple's finances, going through salary slips, property deeds, bank accounts, and personal gifts. At the heart of this entire investigation was a Rs 92,900 property gift given to their 10-year-old son, Sushanth, by a relative.


This gift was given as a sentimental hand-me-down to secure Sushanth's future, not as a financial acquisition. However, the CBI mistakenly classified it as a significant financial transaction, adding it to the list of assets the couple was allegedly unable to explain.

This misclassification caused the couple's perceived wealth to be inflated, leading to corruption charges. The inclusion of this property as a disproportionate asset made the case appear bigger than it actually was.

Further errors by the CBI included overvaluing assets such as a Rs 1-lakh gold necklace and miscalculating cash and investments, such as Rs 6.4 lakh in a finance firm and Rs 2.2 lakh in a locker. The CBI also wrongfully included Rs 35,500 in gold jewelry and legitimate investments as disproportionate assets, failing to review documentation properly.

The defence exposed these errors, proving that the property gifted to Sushanth was a non-financial transfer wrongfully included as a disproportionate asset.

As a result, the court acquitted Raju and Pushpavalli of all charges, bringing the decade-long case to a close.