Karnataka High Court Deliberates on ED Summons to CM's Spouse and Minister

Bengaluru, Feb 20 (NationPress) The Karnataka High Court has reserved its judgement regarding two distinct Enforcement Directorate (ED) summons involving Chief Minister Siddaramaiah's spouse, B.M. Parvathi, and Urban Development Minister Bhyrati Suresh in relation to the Mysuru Urban Development Authority (MUDA) scam case.

Justice M. Nagaprasanna reviewed the arguments and counter-arguments on Thursday, extending the interim order that prohibits the ED summons and reserving the case for judgement.

Parvathi, identified as the second accused in the case, is attempting to invalidate the ED summons requiring her appearance for questioning. Urban Development Minister Bhyrati Suresh, a close ally of CM Siddaramaiah, has also filed a petition to seek relief from the ED's summons.

During the proceedings, Additional Solicitor General Arvind Kamath represented the ED, stating that the ED initiated the case and registered an ECIR (Enforcement Case Information Report) when 14 allocated sites were under the control of CM Siddaramaiah's wife.

The inquiry is deemed necessary as these 14 sites are considered the proceeds of crime. The ED has not filed any charges in the summons and has called for information from her, Kamath noted.

The ASG mentioned that directives originated from Minister Bhyrati Suresh's office, which had issued endorsements leading to the summons for questioning.

He added that properties belonging to MUDA that were unlawfully taken have been transferred to relatives.

"Influential individuals are acquiring sites allotted in the names of their relatives. Numerous relatives of former MUDA Commissioner have received site allocations. Sites have been illegally allocated to grandfathers, wives' grandfathers, and nephews. This information will be shared with the investigation agency," he stated.

The ASG further articulated that corruption and the money amassed through crime are inseparable. "Whenever corruption occurs, funds are illegally accumulated. The private complaint cites a Rs 5,000 crore scam, prompting the Lokayukta to file an FIR. This involves more than just the allotment of 14 sites; the ED is investigating broader illegalities associated with MUDA."

Senior counsel Sandeep Chowta, representing CM Siddaramaiah’s wife, remarked: "The ED's inquiry extends beyond the allotment of 1,708 sites, encompassing more than just the 14 sites. They are overstepping their jurisdiction. They have temporarily seized 160 sites and are examining issues related to land acquisition and conversions.”

"The ED has intruded upon the jurisdiction of Lokayukta police. While the ED has not seized the 14 sites returned to MUDA, it has taken control of other 160 sites. The Lokayukta police have submitted a closure report indicating no misappropriation in this matter,” he continued.

Chowta further asserted: "On October 1, 2024, CM’s wife Parvathi returned all 14 sites, claiming she is not in possession of the MUDA-allotted sites and is not benefiting from them. Thus, the alleged proceeds of crime are not in her possession.”

“If the proceeds of crime were concealed, the ED would have jurisdiction for investigation. However, since the assets are no longer in possession and not utilized, the ED's jurisdiction does not apply here,” Chowta argued.

Nevertheless, he contested that the ED's registration of an ECIR was inherently incorrect.

He also highlighted that the ED registered the ECIR a mere four days post the FIR filing.

He contended that the ED is merely reiterating the investigation already being pursued by Lokayukta Police.