NI Bureau
The Supreme Court has thrown out a money laundering case against DK Shivakumar, Karnataka’s Deputy Chief Minister and a prominent figure in the Congress party. The case, dating back to 2018, involved allegations of tax evasion and illegal financial transactions worth millions of rupees.
Shivakumar was arrested by the Enforcement Directorate (ED) in September 2019 in connection with this case, but was granted bail by the Delhi High Court the following month. He had consistently maintained that the charges against him were politically motivated and expressed confidence in the judicial system.
The investigation by the ED stemmed from raids conducted by the Income Tax department in 2017 on properties associated with Shivakumar and his associates, during which a large sum of cash, nearly ₹300 crore, was reportedly seized. Shivakumar, in response, alleged that the cash was linked to the Bharatiya Janata Party (BJP).
Today, the Supreme Court clarified that for the ED to invoke the Prevention of Money Laundering Act (PMLA) based on Section 120B of the Indian Penal Code (IPC), the alleged conspiracy must involve an offence listed in the Act’s schedule. This follows a ruling in November last year. The ED has expressed its intention to challenge this ruling.
Shivakumar had previously sought relief from the Karnataka High Court regarding the ED’s summons, before escalating the matter to the Supreme Court.
Meanwhile, another corruption case involving Shivakumar has sparked a political controversy in Karnataka. The state government, led by Siddaramaiah, has rescinded permission for the Central Bureau of Investigation (CBI) to investigate the case. The CBI, which had been given the green light when the Congress was in power in Karnataka, is contesting this decision in court.
Peksha Nahata
