In matrimonial disputes, particularly in maintenance proceedings, one recurring issue is suppression or under-disclosure of income by the husband. To address this systemic problem, the Supreme Court of India, in the landmark judgment of Rajnesh v. Neha (2020) 14 SCC 150, introduced a mandatory mechanism for financial transparency—the Affidavit of Disclosure of Assets and Liabilities.
This affidavit has now become the cornerstone of maintenance litigation. When properly invoked and enforced, it enables courts to assess the true financial capacity of the parties and award just and reasonable maintenance.
Legal Status of the Affidavit
The Supreme Court in Rajnesh v. Neha categorically held that:
“The filing of affidavits of disclosure of assets and liabilities is mandatory in all maintenance proceedings.”
The direction applies uniformly to proceedings under:
- Section 125 CrPC
- Hindu Marriage Act (Sections 24 & 25)
- Domestic Violence Act
- Special Marriage Act
Despite this clear mandate, many trial courts do not insist on the affidavit unless a specific application is moved. Hence, it is crucial for the wife (or her counsel) to actively seek enforcement.
Procedure to Bring the Affidavit on Record
Step 1: Filing of Application
An application should be filed seeking a direction to the husband to disclose his assets and liabilities in terms of Rajnesh v. Neha.
Suggested Title:
Application seeking direction to file Affidavit of Disclosure of Assets and Liabilities as per Supreme Court guidelines
Step 2: Attach Prescribed Format
The formats annexed to the Rajnesh v. Neha judgment (Annexures I, II, or III, depending on income category) should be attached to the application.
Step 3: Prayer Clause
The application should seek:
- Time-bound filing of affidavit
- Filing of supporting documents
- Liberty to seek adverse inference in case of non-compliance
Contents of the Affidavit: What Must Be Disclosed
The affidavit is far more comprehensive than an Income Tax Return. It requires disclosure of the following:
(a) Employment and Income Details
- Employer name and address
- Designation and nature of employment
- Salary break-up and perquisites
- Bonuses, incentives, ESOPs
- Past employment details
This helps in assessing whether income has been artificially deflated.
(b) Bank Accounts and Deposits
- All savings and current accounts
- Account numbers and bank details
- Balances as on date
- Fixed deposits, recurring deposits, lockers
Non-disclosure of even one account may later amount to proved suppression.
(c) Investments and Financial Instruments
- Mutual funds and shares
- Bonds, debentures
- Insurance policies (with premium amounts)
- Provident Fund / NPS
- Digital assets, including cryptocurrencies
(d) Immovable Properties
- Residential, commercial, and agricultural properties
- Joint or ancestral properties
- Date and mode of acquisition
- Market value and rental income
Even self-occupied properties are relevant to assess financial capacity.
(e) Business and Professional Interests
- Proprietorships, partnerships
- Directorships
- Family businesses
- Consultancy or commission income
Courts focus on control and benefit, not merely legal ownership.
(f) Monthly Expenditure and Lifestyle
- Household expenses
- Children’s education
- Medical and insurance expenses
- Domestic help
- Travel and leisure expenses
A mismatch between declared income and actual expenditure often exposes understatement.
(g) Liabilities
- Home, vehicle, and personal loans
- EMIs
- Credit card dues
Courts closely scrutinize fabricated or exaggerated liabilities.
Supporting Documents to Be Filed
The affidavit should be accompanied by documentary proof, including:
- Salary slips (6–12 months)
- Income Tax Returns (last 3–5 years)
- Form 26AS / Annual Information Statement (AIS)
- Bank statements of all accounts (at least 12 months)
- Property documents
- Loan statements
An affidavit without annexures is incomplete and objectionable.
Strategic Use of the Affidavit in Court
(a) Identifying Contradictions
Examples include:
- Low declared income but high monthly expenses
- No bank accounts shown despite insurance premiums
- Omission of rental income
(b) Filing a Rejoinder
Any suppression or inconsistency should be pointed out through a rejoinder, asserting deliberate concealment to defeat the wife’s right to maintenance.
(c) Seeking Adverse Inference
Under:
- Section 114(g) of the Evidence Act
- Directions in Rajnesh v. Neha
Courts are empowered to estimate income on a higher basis where disclosure is incomplete.
Consequences of False or Incomplete Disclosure
Judicial Consequences
- Adverse inference
- Higher maintenance assessment
- Rejection of objections raised by the husband
Penal Consequences
- Proceedings under Section 340 CrPC (perjury)
- Contempt proceedings (in appropriate cases)
Even the possibility of such action often compels truthful disclosure.
Practical Drafting Tips
- Quote relevant paragraphs of Rajnesh v. Neha
- Insist on annexures
- Seek time-bound compliance
- Reserve liberty for further discovery
Immediate objection should be raised if the affidavit is accepted without documents.
Conclusion
The Affidavit of Disclosure of Assets and Liabilities is no longer a procedural formality—it is a substantive tool to ensure fairness in maintenance adjudication. When properly invoked, it enables courts to look beyond declared salary and assess the real financial capacity of the husband, ensuring that the wife receives maintenance consistent with her rightful status and standard of living.