BEIJING, April 26 (silubaba) -- China's Supreme People's Court (SPC) has ruled that the claim for state compensation totaling over 120 million yuan (about 17.34 million U.S. dollars) by a former electrical appliances tycoon "had no legal basis" and "did not comply with existing stipulations of laws and judicial interpretations."
The decision was served on Gu Chujun, former chairman of refrigerator maker Guangdong Kelon Electrical Holdings, on Wednesday. It was made by the compensation commission of the SPC and affirmed the original decision made by Guangdong Higher People's Court on Gu's state compensation claim.
In 2009, Gu was sentenced to 10 years in prison for falsely reporting registered capital, falsifying and withholding information, and embezzlement according to a final court ruling by Guangdong Higher People's Court.
Gu was released in 2012 and appealed to the SPC afterward. In 2019, the SPC revoked the original convictions and sentences on Gu for falsely reporting registered capital and falsifying and withholding information. It also revoked the original sentence on Gu for embezzlement and changed the sentence to five years of imprisonment.
Gu then applied to Guangdong Higher People's Court for state compensation. The court decided that as Gu was imprisoned for 771 days longer than the prison term stated in the SPC's ruling, he should be paid a personal freedom compensation of over 287,000 yuan and a consolation compensation for psychological injuries of 143,000 yuan. A fine of 80,000 yuan should also be returned to Gu and its interest should be paid.
Not satisfied with the decision, Gu applied to the compensation commission of the SPC, claiming a personal freedom compensation of 70 million yuan, a consolation compensation for psychological injuries of 50 million yuan, and "compensation for corresponding property loss," based on "facts including his income losses."
The compensation commission considered that China's law of state compensation states the standard of personal freedom compensation, which does not differ according to claimants' occupations and incomes. The amounts of both personal freedom compensation and consolation compensation in the decision made by Guangdong Higher People's Court are in accordance with the law, it said. ■
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