CBI Moves Supreme Court Against Karnataka Govt's Withdrawal Of Consent For Probe Against Dy CM DK Shivakumar

The Supreme Court was today informed that the Central Bureau of Investigation has filed a Special Leave Petition before it challenging the Karnataka government's withdrawal of consent for probe against Congress leader and Deputy CM DK Shivakumar in a disproportionate assets case.

A bench of Justices Surya Kant and Ujjal Bhuyan was hearing another plea assailing the withdrawal of consent, filed by BJP MLA Basangouda Patil Yatnal, when Solicitor General Tushar Mehta apprised about the filing of CBI's appeal. The SG urged that both cases may be listed together.

The matter has been listed after 4 weeks, with an indication that CBI's plea will also be heard on the same date.

To recap, Yatnal filed a petition challenging Karnataka High Court's judgment, which dismissed his plea questioning the withdrawal of consent for the CBI. Dismissing two petitions filed by CBI and B Patil Yatnal, the High Court had said that the matter can be adjudicated only under Article 131 of the Constitution by the Supreme Court since it was a dispute between a State and the Union.

“We hold that present writ petitions are not maintainable. The dispute is between the CBI representing the Union Government and the State government. Such disputes which involve Central Government authority and State government autonomy are more appropriately addressed within the original jurisdiction of the Supreme Court. Accordingly, writ petitions are dismissed as not maintainable. Petitioners are granted liberty to pursue appropriate remedies before the Supreme Court."

The top Court issued notice on Yatnal's petition in September, with Justice Kant questioning the parties on the applicability of Article 131 of the Constitution. On behalf of Shivakumar, it was pointed out that the CBI, from which consent was taken away, had not filed an appeal against the High Court judgment.

Background

To recap, the Income Tax department had carried out a raid in August, 2017 at various premises of Shivakumar in New Delhi and other places. It collected a total of Rs.8,59,69,100, out of which Rs.41 lakhs were allegedly recovered from Shivakumar's premises.

Subsequently, a case was registered against Shivakumar before the Special Court for Economic Offences under provisions of the Income Tax Act, 1961. Based upon the income tax case, ED also registered a case and Shivakumar was arrested on September 3, 2019.

On 09.09.2019, ED issued a letter to the Karnataka government under Section 66(2) of PMLA. Following the same, sanction against Shivakumar was accorded and the matter referred to CBI for investigation.

Shivakumar moved the Karnataka High Court challenging the sanction and proceedings against him. In April, a single judge bench dismissed his petition, but during the course of the hearing, granted the Karnataka Pradesh Congress Committee chief temporary relief by staying the CBI probe on multiple occasions. The single judge's dismissal led Shivakumar to file an appeal before a division bench.

The interim orders were challenged by CBI through a special leave petition, but the Supreme Court in July refused to entertain the agency's plea arising out of 'purely interlocutory' orders.

Subsequently, in October, the top Court issued notice on a plea by CBI challenging Karnataka High Court's June 2023 order which stayed investigation against Shivakumar in the disproportionate assets case. This plea was ultimately dismissed on 10th November, however, the High Court was requested to consider the application filed by CBI for vacating the stay granted and the appeal pending before it preferably within 2 weeks.

Be that as it may, after the Congress party formed the Karnataka government in May 2023, the state government withdrew consent accorded to CBI and the High Court permitted Shivakumar to withdraw his petition challenging the consent to prosecute him.

Case Title: BASANAGOUDA R. PATIL (YATNAL) Versus THE STATE OF KARNATAKA AND ORS., SLP(Crl) No. 12282/2024