Big Relief for Sarfaraz Khan: HC Halts Further Action in ₹2.84 Crore Disproportionate Assets Case

The Bengaluru Live February 13, 2026 8:04 AM 2 minutes read

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Bengaluru: The Karnataka High Court has stayed further proceedings in Crime No.63/2025 registered by the Karnataka Lokayukta Police against Sardar Sarfaraz Khan in connection with alleged disproportionate assets under the Prevention of Corruption Act, 1988.

The writ petition (WP 4307/2026) was filed challenging the FIR dated December 23, 2025, which was based on a source report dated December 1, 2025. The case pertains to alleged offences under Sections 13(1)(b) read with Section 13(2) of the Prevention of Corruption Act and is pending before the XXIII Additional City Civil and Sessions Judge (Special Court), Bengaluru.

The matter came up before Justice M. Nagaprasanna on February 12. After hearing the Senior Counsel appearing for the petitioner, the Court recorded submissions that the entire “check period” considered by the Lokayukta while registering the crime had already been disclosed to the Income Tax Department long ago.

The petitioner relied on a recent Supreme Court judgment in Nirankar Nath Pandey vs. State of U.P. & Others (Crl. Appeal No.5009/2024), wherein the Apex Court held that if assets have already been declared to the Income Tax authorities, prima facie it may not constitute an offence of disproportionate assets under the Prevention of Corruption Act.

On behalf of the Lokayukta Police, objections were filed stating that preliminary scrutiny of seized documents still indicates disproportionate assets to the extent of 131.94%. The prosecution further submitted that while only Rs.66,500 in cash was recovered during the search, scrutiny of documents allegedly reflects assets worth approximately ₹2.84 crore beyond known sources of income.

The High Court observed that the core issue requiring consideration is whether all assets and liabilities were duly declared to the Income Tax authorities, or whether discrepancies remain as claimed by the prosecution.

The Court has directed the petitioner’s Senior Counsel to place clarifications regarding the asset declarations on the next date of hearing. Meanwhile, further proceedings in Crime No.63/2025 against the petitioner have been stayed until the next hearing.

The matter has been adjourned to February 27, 2026.