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      Question

      Under Section 61 of the BNS, 2023, three business

      associates, A, B, and C, separately attend a seminar where a presentation discusses illegal methods to evade corporate taxes. After the seminar, they separately and independently decide to implement these methods for their own businesses without any prior discussion or coordination. Subsequently, through coincidence, their tax evasion schemes are discovered and they are prosecuted together. Additionally, during investigation, it is found that earlier, A had informally mentioned to B at a social gathering that "many companies manipulate financial statements," and B had nodded in agreement. Which of the following correctly determines their criminal liability under Section 61?
      A All three are equally guilty of criminal conspiracy because they independently adopted the same illegal scheme Correct Answer Incorrect Answer
      B Only A and B are guilty of conspiracy because of A's remark and B's affirmative nod, which constitutes a prior meeting of minds; C cannot be included without direct communication Correct Answer Incorrect Answer
      C All three are liable for conspiracy because any coordination, formal or informal, combined with common illegal purpose constitutes conspiracy Correct Answer Incorrect Answer
      D None of them are guilty of conspiracy because they acted independently without any prior arrangement or agreement between them Correct Answer Incorrect Answer
      E A and B are guilty of abetment only (not conspiracy), while C is guilty of the substantive tax evasion offence onl Correct Answer Incorrect Answer

      Solution

      Explanation: Section 61 of the BNS, 2023 (Criminal Conspiracy) defines conspiracy as occurring when "two or more persons agree to do, or cause to be done, an illegal act, or an act which is illegal by means which is illegal." The essential ingredient of conspiracy is an agreement or meeting of minds prior to or during the commission of the act, not merely parallel or coincidental independent actions leading to the same unlawful result. Under established jurisprudence, mere similarity of design or independent adoption of the same unlawful method does not constitute conspiracy. Additionally, A's casual observation about financial statement manipulation and B's affirmative nod, occurring in a social context without any clear agreement to commit illegal tax evasion, do not constitute a meeting of minds. There must be a conscious, deliberate agreement to do the illegal act. Since none of the three had any pre-arranged agreement or coordination, and their discovery of similar schemes was coincidental, they do not constitute a conspiracy. They may be individually liable for the substantive offence (tax evasion) under other provisions, but not for conspiracy under Section 61. Thus, option (D) is correct.

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