The Karnataka High Court on Friday quashed the summons issued by the Enforcement Directorate to Chief Minister Siddaramaiah’s wife, BM Parvathi, and state minister BS Suresh in the alleged Mysore Urban Development Authority scam, reported Live Law.
Suresh has not been named as an accused in the case but the central agency had sought to question him, according to Bar and Bench.
The alleged scam pertains to the allotment of 14 high-value housing sites in Mysuru’s Vijaynagar area to Parvathi in 2021 by the Mysore Urban Development Authority under a state government scheme.
This was allegedly done in exchange for 3.1 acres of land that Parvathi owned in another part of the city. The land was allegedly illegally acquired from Dalit families.
On September 27, the Lokayukta police registered a first information report against Siddaramaiah, Parvathi, her brother Mallikarjuna Swamy and a person named Devaraju.
Swamy had reportedly purchased the land in question from Devaraju and gifted it to Parvathi.
On October 1, Parvathi offered to return the 14 plots in question. This came after the Enforcement Directorate booked Siddaramaiah under the Prevention of Money Laundering Act in connection with the alleged scam.
The central agency had summoned Parvathi and Suresh to appear before it on January 28. In February, the High Court reserved its verdict on their plea challenging the summons.
Parvathi’s counsel had told the court that she has surrendered the plots and thus, is neither in possession nor enjoying the proceeds of the alleged crime, reported Live Law.
“Just the existence of dirty money is not enough for Prevention of Money Laundering Act,” her counsel argued. “The entire argument of mine would be that to attract provisions of PMLA unless there is activity in furtherance of proceeds of crime, PMLA will not be attracted.”
In response, Additional Solicitor General Arvind Kamath, appearing for the Enforcement Directorate, said the case was about corruption and that the investigation was not limited to the 14 sites.
“The complaint is that MUDA has been granting sites by violating rules,” he said. “I am not concerned with the accused in the predicate offence, we are behind the proceeds of crime.”
On February 19, the Lokayukta Police told Mysuru-based social activist Snehamayi Krishna, the complainant in the matter, that it had found “no evidence” against Siddaramaiah, Parvathi and other persons accused in the case.
The anti-corruption ombudsman said it had submitted its final report to the Karnataka High Court.
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