Benami assets in a disproportionate assets case can be inferred from surrounding circumstances and unexplained family holdings.

In a disproportionate assets prosecution, ownership of assets standing in the names of a wife and daughter may be treated as benami where surrounding circumstances show that close relatives had no independent source of income and the accused failed to satisfactorily explain the funds. Proof may rest on circumstances, the ordinary course of human conduct, and permissive presumptions of fact rather than direct evidence alone. On the facts, the Court found that substantial assets and deposits were routed through family members and the alleged gifts were not credibly accounted for, so the conviction under the Prevention of Corruption Act was sustained.

---

---

Issues: Whether the appellant's conviction for criminal misconduct for possessing pecuniary resources and property disproportionate to known sources of income could be sustained on the finding that assets standing in the names of his wife and daughter were really held on his behalf.

Analysis: The prosecution established that before the check period the appellant and his family had meagre means, while during the check period substantial assets and deposits were acquired in the names of close family members who had no independent source of income. The explanation of gifts through a relative was rejected on the facts. In assessing whether the assets were benami, the Court applied the statutory meaning of "proved" and the permissive presumption of fact under the evidence law, holding that proof may rest on circumstances and the ordinary course of human conduct. On the evidence, the natural inference was that the appellant had routed his funds through family members and the alleged gifts were not satisfactorily accounted for.

Conclusion: The conviction under Section 13(1)(e) read with Section 13(2) of the Prevention of Corruption Act was rightly sustained and the appellant was not entitled to relief.

Ratio Decidendi: In a disproportionate assets case, benami ownership and transfer through close relatives may be inferred from proved surrounding circumstances and presumptions of fact, and once such inference is reasonably established the accused must satisfactorily account for the assets.

---