Today, the Supreme Court dismissed Karnataka Deputy Chief Minister DK Shivakumar's petition challenging a High Court order. The High Court had previously rejected his plea to quash the Central Bureau of Investigation's disproportionate assets case under the Prevention of Corruption Act.
The matter was heard by a bench comprising Justices Bela M Trivedi and Satish Chandra Sharma.
Senior Advocate Mukul Rohatgi, representing Shivakumar, argued that the investigation had begun without obtaining sanction under Section 17A of the Prevention of Corruption Act. He also raised the contention that the applicability of Section 17A to offenses allegedly committed before the 2018 amendment (which introduced Section 17A) has been referred to a larger bench, citing the Chandrababu Naidu case.
In response, Justice Trivedi emphasized that proceedings cannot be quashed solely on the basis of a split verdict. Rohatgi clarified that he was simply requesting for the issuance of notice on the petition.
Justice Trivedi specifically mentioned the allegation that Rs. 41 lakhs were recovered from Shivakumar. Rohatgi clarified that this allegation was made in proceedings under the Income Tax Act.
Rohatgi argued that there shouldn't be a CBI FIR on the same issue. Justice Trivedi disagreed, stating that the case pertained to a distinct offense under the Prevention of Corruption Act. The judge clarified that the Income Tax authorities do not prosecute under the PC Act.
Notably, the bench also expressed its disapproval of the High Court's order for staying the sanction accorded to CBI. "How can High Court stay sanction? This is unheard of...", Justice Trivedi said. On this aspect, counsels for Shivakumar informed that the Karnataka government has withdrawn the consent accorded to CBI.
To recap, in August 2017, the Income Tax department conducted raids at multiple premises belonging to Shivakumar in New Delhi and other locations. During these raids, a total of Rs. 8,59,69,100 was collected, with Rs. 41 lakhs allegedly recovered from Shivakumar's premises.
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