MUDA site allotment case: Karnataka High Court quashes ED’s proceedings against CM’s wife Parvathi and Minister Byrathi Suresh  

Justice M. Nagaprasanna passed the order while dismissing the separate petitions filed by Ms. Parvathi and Mr. Suresh, who had challenged the case registered by the ED and the summons issued to them asking them to appear before the investigating officer for recording of their statements.

In a relief to Chief Minister Siddaramaiah’s wife, B.M. Parvathi, and Urban Development Minister Byrathi Suresh, the High Court of Karnataka on March 7 set aside the alleged money laundering proceedings initiated against them by the Enforcement Directorate (ED) in connection with alleged illegal allotment of sites by the Mysuru Urban Development Authority (MUDA).

Justice M. Nagaprasanna passed the order while dismissing the separate petitions filed by Ms. Parvathi and Mr. Suresh, who had challenged the case registered by the ED and the summons issued to them asking them to appear before the investigating officer for recording of their statements.

The court orally told the advocates representing the ED and the petitioners that it has followed extensively the judgment passed by another single judge, who had quashed the ED’s summons and recorded statements of MUDA’s former commissioner D.B. Natesh.

It was contended on behalf of the petitioners that there must exist a clear element of ‘laundering’ of ‘proceeds of crime’, and in the present case, there is no transaction in allotment of 14 sites to Ms. Parvathi to attract the offence of ‘laundering’ under the provisions of the Prevention of Money Laundering Act (PMLA).

It was also contended on behalf of Ms. Parvathi that she had surrendered the 14 sites, and she was neither in possession of nor enjoying any ‘so-called proceeds of crime’ while questioning the haste with which the ED initiated proceedings under PMLA based on the First Information Report (FIR) registered by the Lokayukta police on trial court’s order in the case of alleged illegality in allotment of sites to various persons by MUDA, including those allotted to Ms. Parvathi.

The ED, while justifying its summons, had told the court that investigation is not confined to only the allegation of allotment of 14 sites to Ms. Parvathi but also on the alleged illegalities in allotment of hundreds of sites by MUDA to various individuals, including real estate businessmen, agents, officials, and various influential individuals.

Though Ms. Parvathi is arraigned as an accused in the FIR filed by the Lokayukta police, the ED had said that it is not bound to treat her either as accused or witness at this stage, as it would depend on the evidences collected in the investigation.