The Supreme Court stated it is “not powerless to annul proceedings” regarding the Karnataka government’s decision to transfer the investigation against D.K. Shivakumar to the Lokayukta. The court was hearing pleas from the CBI and BJP leader Basanagouda Patil Yatnal, who separately challenged the state government’s withdrawal of consent for the CBI to probe a disproportionate assets case against Shivakumar.
New Delhi: The Supreme Court stated that it is not powerless to annul proceedings related to the Karnataka Lokayukta in the investigation of a disproportionate assets case against Deputy Chief Minister D.K. Shivakumar.
Justices Surya Kant and Ujjal Bhuyan emphasized that the court is not obligated to accept the situation as it stands.
This comment arose during a hearing where senior advocate K. Parameshwar, representing BJP MLA Basanagouda Patil Yatnal, argued that efforts were underway to nullify the entire process, despite the CBI’s investigation, because the case had been transferred to the Lokayukta, which might issue a closure report concerning Shivakumar.
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The court was reviewing a plea from the CBI and Yatnal that challenged the withdrawal of consent for investigating the disproportionate assets case against Shivakumar. The CBI’s counsel requested a postponement since Solicitor General Tushar Mehta was occupied in another court. The bench stated that it would address the matter on a non-miscellaneous day.
The CBI’s counsel indicated that an interim order might be necessary, while senior advocate Kapil Sibal, representing the Karnataka government, asked for additional time to respond. The court scheduled the case for consideration on January 22, 2025.
The CBI and Yatnal are contesting the Karnataka High Court’s order from August 29, 2024, which dismissed their petitions against the Congress government’s decision to withdraw consent for investigating the corruption case against Shivakumar, labeling them as “non-maintainable.”
The High Court also rejected the CBI’s challenge to the state’s November 28, 2023, decision to withdraw consent for probing Shivakumar’s alleged illegal assets. The CBI initially filed a case against Shivakumar for disproportionate assets on October 3, 2020, based on consent granted by the prior BJP government on September 25, 2019, alleging he amassed Rs. 74.93 crore in wealth beyond his known income sources from April 2013 to April 2018 while serving as energy minister in a previous Congress government.
D.K. Shivakumar, the Deputy Chief Minister of Karnataka, is currently embroiled in a legal dispute over allegations of possessing disproportionate assets. The case has witnessed significant developments involving both the Central Bureau of Investigation (CBI) and the Karnataka Lokayukta.
- Income Tax Raid (2017): In August 2017, the Income Tax Department conducted raids on Shivakumar’s properties in New Delhi and other locations. During the searches, authorities reportedly seized approximately Rs.8.59 crore, including Rs.41 lakh allegedly recovered from his premises.
- CBI Investigation (2020): Following these findings, the Enforcement Directorate (ED) launched a money laundering investigation, which led to Shivakumar’s arrest on September 3, 2019. Subsequently, on October 3, 2020, the CBI filed a disproportionate assets case against him after obtaining consent from the then BJP-led Karnataka government.
The case remains ongoing, with the Supreme Court scheduled to deliberate further in January 2025. The outcome is expected to have significant implications for the jurisdictional powers of central and state investigative agencies in cases involving state officials.