MUDA Case: Karnataka High Court Extends Stay On ED Summons Issued To CM Siddaramaiah's Wife Parvathy, Minister Suresha

The Karnataka High Court on Monday extended its interim order staying the summons issued by Enforcement Directorate to Chief Minister Siddaramaiah's wife Parvathy and Minister B S Suresha, for their alleged involvement in the MUDA case, till February 20.

A single judge Justice M Nagaprasanna directed the ED to file its objection in a week's time and posted the matter for further hearing on February 20.

Senior Advocate Sandesh J Chouta and Senior Advocate Vikram Huilgol appeared for Parvathy. During the hearing, Chouta took the court through the points of submissions which he would be making to quash not only the summons issued by ED under Section 50 but also the ECIR registered.

Chouta said “What we are seeking is not only quashment of summons but the ECIR offence. As on the date of initiation of ECIR there exists no proceeds of crime.”

He further asked the Court, “Would it be permissible to permit an inquiry under PMLA when investigation is ongoing in the predicate offence (by lokayukta). The ECIR was registered four days after the FIR was registered by the Lokayukta police on the directions of the trial court.”

Emphasising that for invoking provisions of PMLA the accused should be in enjoyment of the proceeds of crime, Chouta said “The accused must be in enjoyment of the money, this is most crucial for the sake of PMLA. Section 3 of Act deals with enjoyment. In our case after the orders were passed the sites have been returned and they are with the authorities.”

To which the court said “The Crime will not vanish.” In reply Chouta said “PMLA wont lie if not initiated before I surrendered the sites.”

Senior Advocate C V Nagesh appearing for Suresha argued that “I assumed office as minister in June 2023. The offence is related to illegal or authorized allotment of sites. Proceeds of crime is in relation to the illegal allotment of sites, in what way am I connected to it. My tenure commenced only in June 2023. Before that I was an utter stranger to MUDA. Moreover, the basis of the complaint is a private complaint. In that there is not even a remotest mention about me. No reference has been made to the petitioner. Then what is the object of issuing the notice?"