Karnataka High Court Dismisses Deputy CM DK Shivakumar's Plea To Quash CBI's Disproportionate Assets Case Against Him, Vacates Stay On Probe

The Income Tax department had carried out a raid in August 2017 at various premises of Shivakumar in New Delhi and other places and they collected Rs.8,59,69,100. It is alleged that Rs.41.00 lakhs was recovered from his premises.

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

Thereafter, the office of the Special Director of ED issued a letter dated 09.09.2019 to the State Government by acting under Section 66(2) of Prevention of Money Laundering Act, 2002. Following which the Government of Karnataka accorded sanction against Shivakumar, referring the matter to the CBI for investigating the case.

Shivakumar had earlier 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.

CBI's appeal against the stay orders is pending in the Supreme Court.

Citation: 2023 LiveLaw (Kar) 401