The Supreme Court upheld the Kerala High Court’s dismissal of bribery and money laundering cases against IUML leader KM Shaji, citing lack of direct evidence. Justice Oka emphasized that all witness statements were hearsay. This ruling reinforces the need for concrete evidence in corruption cases, protecting individuals from politically motivated allegations and ensuring a fair judicial process.
New Delhi: The Supreme Court on Sunday upheld the Kerala High Court’s judgments quashing bribery and money laundering cases against Indian Union Muslim League (IUML) leader and former MLA KM Shaji.
“You recorded 54 statements. Not a single witness says that the demand was made in his presence and money was paid to him, not a single witness,”
Justice Abhay S. Oka observed during the proceedings.
Case Background and Allegations
The allegations against Shaji stemmed from a complaint filed in 2017 by a local CPM leader, accusing him of accepting a bribe of Rs 25 lakh to sanction a Plus Two course for Azhikode Higher Secondary School in Kannur during the 2014–2015 academic year. Initially, the dispute arose as an internal controversy within the Muslim League, later taken over by the CPM.
In 2020, the Vigilance and Anti-Corruption Bureau (VACB) registered a bribery case against Shaji. Following this, the Enforcement Directorate (ED) initiated a money laundering investigation. However, on June 19, 2022, the Kerala High Court quashed the bribery and money laundering cases against Shaji, a decision challenged in the Supreme Court.
Supreme Court’s Observations
A bench of Justice Abhay S. Oka and Justice Augustine George Masih dismissed the Special Leave Petitions (SLPs) filed by the State of Kerala and the ED. The Court noted that statements from 54 witnesses did not establish any direct evidence of Shaji demanding or receiving money.
“All hearsay that somebody else told me that money was demanded. Not a whisper about demand made by the respondent,”
Justice Oka remarked.
The Court further observed, “If we allow this, any politician can be roped in,” emphasizing the potential misuse of such cases in the absence of substantive evidence.
Arguments from the State and ED
Solicitor General Tushar Mehta, representing the petitioners, argued that the investigation should not have been interrupted. He contended that political motives or rivalry should not be used as grounds to quash an investigation at its initial stages.
“Issues like political motive, issues like political rivalry are not grounds to be taken at the stage of investigation,”
he asserted.
However, the Court found no merit in these arguments and upheld the High Court’s quashing of the FIR and subsequent ED proceedings under the Prevention of Money Laundering Act (PMLA).
Kerala High Court’s Earlier Rulings
On April 13, 2023, Justice Kauser Edappagath quashed the VACB FIR, ruling that no prima facie case had been made against Shaji. On June 19, 2023, Justice PV Kunhikrishnan quashed the ED proceedings, citing the Supreme Court’s ruling in Vijay Madanlal Choudhary & Others v. Union of India, which establishes that PMLA cases cannot proceed in the absence of a predicate offence.
Legal Representation
The state government was represented by Senior Advocate Neeraj Kishan Kaul and Standing Counsel Harshad V. Hameed. Senior Advocate Nikhil Goyal and Advocate Harris Biran appeared on behalf of KM Shaji.
Implications of the Verdict
This verdict underscores the necessity of concrete evidence when pursuing corruption and money laundering charges against public figures. The Court’s observations highlight the importance of safeguarding individuals from politically motivated allegations in the absence of credible evidence.
The dismissal of these cases reinforces the judiciary’s commitment to a fair and evidence-based legal process, ensuring that “political motives” and “hearsay” do not override the principles of justice. The Court’s decision is a significant win for KM Shaji, clearing his name from long-standing allegations.
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