In a major verdict, the Karnataka High Court on Friday cancelled the Enforcement Directorate (ED) summons issued to Karnataka Chief Minister Siddaramaiah's wife BM Parvathi in relation to the Mysore Urban Development Authority (MUDA) scam. The Justice M Nagaprasanna single-judge bench also set aside the ED summons served on State Minister Byrathi Suresh, who was not listed as an accused but was called for questioning in the case.
Court had previously stayed the summons
The High Court had previously stayed the ED summons on January 27 after Parvathi and Suresh moved petitions against the agency's notice. The court's final order now cancels the summons entirely.
Senior Counsel Sandesh Chouta, who appeared for Parvathi, contended that the ED was pursuing a parallel probe even though the alleged land allotment anomalies were already being investigated by the Lokayukta police and a Special Investigation Team (SIT).
ED stands up for summons, refers to proceeds of crime
Rebutting the contention, Additional Solicitor General of India Arvind Kamath, appearing for the ED, informed that Parvathi was listed as the second accused in the predicate offence regarding illegal allotment of land. The ED had alleged she was called as she had allegedly been given proceeds of crime in connection with the case.
Likewise, Senior Counsel CV Nagesh, who represented Minister Byrathi Suresh, contended that the summons to Suresh needed to be quashed since he was not even made an accused in the first case.
ASG Kamath, however, contended that Section 50(2) of the Prevention of Money Laundering Act (PMLA) authorises the ED to issue even non-accused persons a summons for verification of documents and questioning.
MUDA scam: Allegations against CM's wife
The MUDA scam is about charges of corruption in the allocation of land by the Mysore Urban Development Authority. According to the complaint, CM Siddaramaiah's wife Parvathi was gifted a plot of land by her brother Swamy. The land had originally been purchased by the government, then de-notified and purchased by Swamy, before being illegally developed by MUDA when it was privately owned.
Parvathi subsequently demanded compensation from MUDA, reportedly getting exorbitant compensation in the form of 14 developed alternative plots, whose value was much greater than the initial three-acre plot, under a 50:50 scheme.
Lokayukta police gave clean chit to CM's family
Notwithstanding the controversy, Mysore Lokayukta Police had already given a clean chit to CM Siddaramaiah, his wife Parvathi, and her brother BM Mallikarjuna in the case earlier.
The High Court's verdict quashing ED summons is perceived as a great relief for Minister Byrathi Suresh and Siddaramaiah's family, more or less ending further interrogation by the central agency in the matter.
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