Sabka Vishwas discharge certificate bars reopening absent a finding that a material declaration was false

Under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, a discharge certificate in a voluntary disclosure case is conclusive for the matter and period covered, and reopening is permitted only if a material particular in the declaration is later found false within one year. The HC held that this exception requires a prior finding of falsity as to a material particular, not merely a general suspicion or request for documents. Because the impugned communication did not record such a finding and amounted to a roving enquiry, further proceedings were barred and the communications were quashed.

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Issues: Whether, after issuance of a discharge certificate under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 in a case of voluntary disclosure, proceedings could be initiated under the proviso relating to false declarations without a finding that any material particular in the declaration was false.

Analysis: The scheme makes the discharge certificate conclusive for the matter and time period covered by the declaration and bars reopening in other proceedings, save for the limited exception where, in a case of voluntary disclosure, any material particular furnished in the declaration is subsequently found to be false within one year of issue of the discharge certificate. That exception operates only when there is a prior finding that a material particular, and not merely any particular, was false. The impugned communication did not record such a finding and instead called for documents in the nature of a roving enquiry, which was impermissible.

Conclusion: Proceedings could not be initiated in the absence of a finding that a material particular in the declaration was false, and the impugned communications were quashed.

Ratio Decidendi: Under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, reopening after a discharge certificate in a voluntary disclosure case is permissible only upon a prior finding that a material particular in the declaration was false; absent such finding, further proceedings are barred.

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