Karnataka HC declares ED proceedings against MUDA official over land allotted to CM Siddaramaiah’s wife as illegal

He questioned the ED’s actions against him, including the issuance of summons dated October 29 and November 6 and the signaling of his statements erstwhile helium was not accused successful the predicate offence of alleged corruption registered by the Karnataka Lokayukta constabulary against Siddaramaiah, his wife, and others connected September 28.

The Karnataka HC ruled that the searches conducted astatine the residence of Natesh and statements recorded aft the searches “under Section 17(1)(f) of PMLA, 2002 is vitiated connected the grounds of lack of ‘reason to believe’, and is hereby declared invalid and illegal”.

“The impugned summons issued nether Section 50 of PMLA, 2002, dated 29.10.2024 and 06.11.2024 and the assorted statements recorded nether Section 50 of the Act are hereby quashed,” a single-judge seat of Justice Hemant Chandangoudar ruled connected January 27.

Since the erstwhile MUDA authoritative is not accused successful the predicate corruption offence helium cannot beryllium expected to disclose immoderate facts implicit the alleged amerciable allotment of 14 sites, the HC said. it besides observed that the ED “is expected to discharge its duties with fairness” arsenic a premier probe agency.

Also Read | What is the ‘MUDA scam’ implicit which Siddaramaiah is facing BJP heat?

“The close to liberty and privateness nether Article 21 of the Constitution vests a close against the behaviour of arbitrary searches, and therefore, the hunt conducted connected the premises of the petitioner nether the garb of investigation, erstwhile determination is nary prima facie grounds to found the offence nether Section 3 is but an maltreatment of process of law,” Justice Hemant Chandangoudar said.

The tribunal noted, “The alleged predicate offence pertains to the amerciable allotment of sites during the petitioner’s tenure arsenic the Commissioner of MUDA. However, determination is nary grounds to show that immoderate information passed successful narration to the conveyance oregon relinquishment of specified sites was received by the petitioner.”

The HC observed that the reasons for the wealth laundering proceedings against the erstwhile MUDA commissioner provided by the ED “in the sealed cover, indicates nary circumstantial allegation against the petitioner, but that of improper allotment of sites successful favour of Smt B.M Parvathi, and that the petitioner is adjacent to realtors”.

“Thus, this tribunal is of the sentiment that the impugned hunt and seizure conducted astatine the residence of the petitioner was unwarranted and based connected unfounded suspicion and is, therefore, an maltreatment of process of law,” the HC added.

The HC said that since nary prima facie lawsuit had been established against the erstwhile MUDA commissioner nether the PMLA astatine the clip of the hunt of his residence, “the issuance of summons to the petitioner lacks ineligible authority”.

“The petitioners cannot beryllium compelled to look and grounds their statements oregon nutrient documents, arsenic specified actions would unjustly infringe upon their idiosyncratic close to liberty,” the tribunal observed.

“The Enforcement Directorate cannot springiness the elements of procedural fairness contained successful the PMLA a go-by successful the people of its administration. It is pertinent that the close to liberty and privateness of individuals cannot beryllium trampled upon and that immoderate curtailment of civilian liberties is taxable to the owed process of law,” Justice Hemant Chandangoudar noted.

Incidentally, connected the aforesaid day, a abstracted seat of the precocious tribunal stayed the summons issued by the ED to Parvathi and the Urban Development Minister B S Suresha connected the grounds that the ED notices could “frustrate proceedings” already underway successful the HC connected whether the predicate offence of corruption should beryllium handed implicit to the Central Bureau of Investigation (CBI).

MUDA case: A timeline

The ED registered an Enforcement Case Information Report (ECIR) connected October 1, 2024,  based connected an FIR filed by the Lokayukta constabulary connected September 28 implicit the alleged amerciable allotment of 14 sites by MUDA successful 2021 during the tenure of the BJP to Siddaramaiah’s wife.

The allotment of 14 lodging sites by MUDA successful speech for 3.16 acres of onshore acquired “wrongfully” by MUDA from Siddaramaiah’s woman was alleged to beryllium an enactment of corruption involving a summation of Rs 56 crore for the Karnataka CM’s family. Following the contention implicit the allotment of the 14 lodging sites past year, Parvathi returned the 14 lodging sites to the MUDA. She is named arsenic accused fig 2 successful the predicate corruption lawsuit registered by the Karnataka Lokayukta constabulary successful September 2024.

The ED, which investigates cases of wealth laundering, has provisionally attached 142 properties worthy Rs 300 crore successful transportation with its probe into alleged ample standard irregularities successful the allotment of lodging sites by MUDA. The properties of the CM’s household have, however, not been attached by the ED.

Allegations regarding irregularities successful onshore allotments by MUDA surfaced aft RTI activistic Senhamayi Krishna raised concerns astir the CM’sKrishna accused them of illegally profiting from the allotment of 14 MUDA lodging sites to Siddaramaiah’s woman successful 2021. This allotment was allegedly made successful speech for 3.16 acres of onshore that was claimed to person been acquired improperly by MUDA.

“Searches conducted during the probe further revealed that a ample fig of sites, different than the 14 sites allotted to Smt. BM Parvathi,have been illegally allotted by MUDA arsenic compensation to existent property businessmen, who successful crook person sold these sites astatine immense nett and generated immense amounts of unaccounted cash. The nett truthful generated has been laundered and shown arsenic derived retired of morganatic sources,” the ED said 2 weeks ago.

Siddaramaiah earlier questioned the filing of a PMLA lawsuit against him implicit the MUDA onshore scam case. “It is hard to recognize since determination is nary speech of wealth involved,” Siddaramaiah said successful October 2024, a time aft the ED filed a PMLA lawsuit against him, his woman and others.