Bengaluru, 6 March

Karnataka High Court has stayed the process of handing over gold and diamond jewellery belonging to former Tamil Nadu Chief Minister late J Jayalalithaa to the neighbouring state government till 26 March.

The stay was granted by a single judge bench of Justice Mohammed Nawaz on a plea by Jayalalithaa's niece J Deepa on Tuesday. The valuables were confiscated in a disproportionate assets case against the late AIADMK leader and slated to be handed over to the Tamil Nadu authorities from Wednesday by a special court.

The petitioner questioned the 12 July, 2023 special court order contending that Jayalalithaa should be treated as "acquitted" as the Apex court had stopped the proceedings against her. The special court here had said 27kg of gold and diamond jewellery -- part of the material evidence in the case against Jayalalithaa and others -- would be handed over to the Tamil Nadu government on March six and seven, paving the way for unlocking value of the assets to mobilise Rs 100 crore fine imposed on her.

While 20kg were allowed to be sold or auctioned, the remaining 7kg had been exempted by the Court considering the fact that it was inherited from her mother.

The Tamil Nadu Government will then take necessary action on the disposal of these gold and diamond jewellery, it had said.

The trial was held in Karnataka on the direction of the Supreme Court and therefore all material evidence is in the Karnataka treasury now under the custody of the court.

Ordering the transfer of the jewellery to the Tamil Nadu Government, the Special Court judge had said, “Instead of auctioning the jewels, it is better to transfer the same to Tamil Nadu by handing over the same through the Department of Home, State of Tamil Nadu."

The Court had then issued the direction that the Tamil Nadu Home Department authorise "competent persons preferably in the rank of Secretary along with police to come and collect the jewels.”

In the same order, the special court had ordered the payment of Rs five crore to Karnataka for the expenses of the trial conducted in the State. The payment will be made from a fixed deposit in an account related to Jayalalithaa in the State Bank of India branch in Chennai.

The trial against Jayalalithaa, her former close aide V Sasikala, VN Sudhakaran, who is the disowned foster son of Jayalalithaa, and Sasikala's sister-in-law J Ilavarasi was conducted by the special court here, which convicted them nearly ten years ago.