Providing relief to Karnataka’s Deputy Chief Minister DK Shivakumar just before the Lok Sabha elections, the Supreme Court today rejected a money laundering case filed against the Congress leader in 2018. The case involved accusations of tax evasion and hawala transactions amounting to millions. The origins of the case lie in 2017, following a series of raids by the Income Tax Department on various properties associated with Shivakumar.
The Supreme Court Today (5th February) of India has absolved Karnataka Deputy Chief Minister DK Shivakumar of money laundering charges dating back to 2018. The apex court’s decision came after it found that the proceedings under the Prevention of Money Laundering Act (PMLA) against Shivakumar were not conducted in alignment with established legal standards and rules.
This legal battle traces back to when Shivakumar approached the Supreme Court, challenging the Karnataka High Court’s decision from 2019, which had declined to annul the Enforcement Directorate (ED) summons directed at him in connection with the alleged money laundering case.
The investigation by the Enforcement Directorate (ED) against the Congress leader stemmed from raids conducted by the Income Tax department on properties associated with him and his associates in 2017. At that time, officials reported the seizure of nearly ₹300 crore in cash. Mr. Shivakumar retaliated, alleging that the cash was connected to the BJP.
The origins of the case lie in 2017, following a series of raids by the Income Tax Department on various properties associated with Shivakumar. These actions set off a chain of investigations, with the Enforcement Directorate subsequently initiating its own probe into the allegations.
The case originated from an incident in August 2017, when an undisclosed amount of cash was discovered in Shivakumar’s residences in Delhi. The two-judge bench, consisting of Justices Aniruddha Bose and Bela M Trivedi, concluded that the investigative authorities failed to conclusively link the origin of the seized cash to any money laundering activities.
The situation escalated when, based on findings from the ED’s investigation, the Central Bureau of Investigation sought permission from the Karnataka government to file an FIR against the Congress leader. This led to Shivakumar’s arrest by the ED in September 2019, followed shortly by the registration of an FIR.
Today, the court remarked on the issue of whether Section 120B of the Indian Penal Code (IPC) could serve as an independent predicate offense, allowing the ED to invoke the Prevention of Money Laundering Act (PMLA).
Last November, the Supreme Court clarified that criminal conspiracy under Section 120B of the IPC (Punishment of criminal conspiracy) would be considered a scheduled offense under the Prevention of Money Laundering Act only if the alleged conspiracy pertains to committing an offense listed in the Act’s schedule. The ED has requested a review of this ruling.
Despite these challenges, Shivakumar contested the FIR and the underlying allegations in the Karnataka High Court, leading to a prolonged legal struggle that culminated in the recent Supreme Court verdict.
This ruling not only represents a significant legal victory for DK Shivakumar but also has broader implications for the political landscape in Karnataka, potentially impacting the dynamics within the state’s ruling party and opposition.
The dismissal of the case by the Supreme Court underscores the importance of adhering to legal procedures and standards in the prosecution of money laundering cases and highlights the judiciary’s role in safeguarding individual rights against unfounded allegations.
