Karnataka HC Quashes DA Case, Terms Lokayukta Probe Flawed
In a significant ruling, the Karnataka High Court has quashed the disproportionate assets (DA) case against Sardar Sarfaraz Khan, a retired public servant and former Private Secretary to Housing Minister B.Z. Zameer Ahmed Khan. The court found that the Lokayukta police had failed to follow their own procedure by not conducting a preliminary inquiry before registering the FIR.
Justice M. Nagaprasanna, allowing the petition filed by Mr. Sarfaraz, noted that the Lokayukta police had registered the FIR on December 23, 2025, just days before his retirement on December 31, 2025, based on a source report of December 1, 2025. The court observed that the procedure evolved by the Lokayukta police in 2023 mandated a preliminary inquiry before filing a DA case, which was not done.
The court further highlighted that Mr. Sarfaraz had declared all his assets in his income tax returns and before the Competent Authority under the Karnataka State Civil Service (Conduct) Rules, 2021. Citing the Supreme Court judgment in Nirankar Nath Pandey's case, Justice Nagaprasanna stated that for evaluating DA cases, authorities must consider economic fluctuations and presume income tax returns to be accurate unless proven false.
The Lokayukta police had alleged that Mr. Sarfaraz amassed assets worth ₹9.42 crore, which were 135.04% disproportionate to his known income. However, the court noted that no significant cash recovery was made during searches, except for ₹66,500 in cash.
The court was informed that the petitioner came from an affluent family, with his grandfather having served as a police inspector in the pre-Independence Madras Presidency, his father a landlord and senior government official, and his mother owning prime lands and houses. His younger brother runs a sports training centre and horse-riding school, and his sister is married to a retired Director General of Police from Kerala.
The High Court's decision underscores the importance of adhering to procedural safeguards in corruption cases involving public servants.
