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Supreme Court sentences the owner of JPLP to five years and ordered to restitute Nu 154 M

May 17, 2021
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The Supreme Court sentenced an Indian national, the owner of Jatan Prasad Lal Chand Prasad (JPLP), a departmental store in Phuentshogling, to five years in prison for evading tax. The judgment was passed on Friday. He was also ordered to restitute Nu 154 M within a month from the date of the judgment. 

The OAG has charged him for tax evasion amounting to over Nu 184 M.

Earlier, the larger bench of the High Court overturned the ruling of the High Court’s judgment and upheld the judgement of the Dungkhag Court where Jatan Lal Prasad will be liable to restitute more than Nu 14.487 M and additional Nu 7.875 M in back taxes and penalties after the deduction of direct cost.

The High Court had overturned the Dungkhag Court’s judgment and sentenced the defendant to five years non-compoundable prison term and also increased JPLP’s tax liability from Nu 14.487 M to Nu 126.897 M by including purchase cost after the Office of the Attorney General (OAG) appealed against the lower court’s ruling.

Until the Larger Bench of the High Court, the OAG prosecuted the case. However, after the judgment by the Larger Bench, the Anti Corruption Commission appealed the case to the Supreme Court in 2019.

In 2015, the Anti-Corruption Commission uncovered that the JPLP had evaded tax.

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