High Court Greenlights ED Probe Against CM Siddaramaiah in MUDA Scam, Overrides Lokayukta’s Clean Chit
MUDA Scam: Will the HC’s Nod to ED Probe Spell Trouble for Karnataka CM?
Bengaluru: In a significant development, the Karnataka High Court has allowed the Enforcement Directorate (ED) to proceed with its money laundering probe into alleged irregularities in the Mysuru Urban Development Authority (MUDA) case, despite the Lokayukta police giving a clean chit to Chief Minister Siddaramaiah and his family.
The court, however, refused to stay a single-judge order that had quashed ED summons issued to former MUDA Commissioner D.B. Natesh.
ED Challenges Lokayukta’s Closure Report
The ED had moved an appeal against a January 27, 2025, ruling by a single-judge bench that invalidated the agency’s search and seizure operations at Natesh’s residence in October 2024. The ED argued that the Lokayukta police ignored crucial evidence while closing the case.
A division bench comprising Chief Justice N.V. Anjaria and Justice K.V. Aravind held that the single-judge order should not derail the broader investigation. “All probes under the Prevention of Money Laundering Act must proceed as per the law,” the bench observed in its interim order.
Protest Petition Filed Against Lokayukta’s ‘B Report’
The ED is also probing an Enforcement Case Information Report (ECIR) against CM Siddaramaiah, his wife B.M. Parvathi, and his brother-in-law, among others. The agency has filed a protest petition challenging the Lokayukta’s closure report, which absolved the Chief Minister’s family of wrongdoing.
The ED alleges that the Lokayukta failed to examine key evidence, including the denotification and conversion of 3 acres and 16 guntas of land in Mysuru’s Kesare village—owned by Parvathi—and the subsequent allotment of alternative sites to her. The agency has urged a special court to reject the closure report.
Political Storm Brewing
Siddaramaiah and his wife were named as the primary accused in the case, but the Lokayukta recently filed a ‘B report’, claiming insufficient evidence. However, complainant Snehamayi Krishna has contested this conclusion. The special court is set to rule on the matter on April 3.
With the High Court permitting the ED to continue its investigation, the case could escalate into a major political and legal crisis for the Siddaramaiah-led government.
Court’s Key Observations
The division bench clarified that the ED’s probe should not be obstructed by the single-judge order and allowed the agency to use documents seized from Natesh’s residence. It also left open the question of whether Natesh’s statement under PMLA could be retracted.
The ED further argued that the single-judge order was being exploited by other accused to stall investigations in at least seven cases. The bench, however, upheld the agency’s right to proceed lawfully.
What Next?
As the legal tussle intensifies, the April 3 court order will be pivotal in shaping the case’s trajectory. The ED’s continued probe could spell fresh trouble for the Chief Minister, keeping the political heat on in Karnataka.
Statements & Quotes:
- Karnataka HC: “ED’s investigation under PMLA must proceed unhindered. The single-judge order should not stall the entire probe.”
- ED Spokesperson: “The Lokayukta ignored crucial evidence. We will pursue the case to ensure justice.”
- Siddaramaiah’s Legal Team: “The Lokayukta has already cleared the CM. The ED’s allegations are politically motivated.”
- Opposition Leader: “If the CM is innocent, why is the ED still investigating? The truth must come out.”
Q & A:
Q: What is the MUDA case about?
A: It involves alleged irregularities in land allotments by the Mysuru Urban Development Authority, where CM Siddaramaiah’s family reportedly received alternative plots illegally.
Q: Why did the ED challenge the Lokayukta’s report?
A: The ED claims the Lokayukta ignored key evidence, including land denotification and illegal allotments.
Q: What happens next?
A: The special court will rule on the Lokayukta’s closure report on April 3, while the ED continues its probe.
Short Summary:
The Karnataka HC has allowed the ED to continue its money laundering probe into the MUDA land scam, despite the Lokayukta giving a clean chit to CM Siddaramaiah. The ED alleges evidence was overlooked and has filed a protest petition. The case could have major political repercussions.
Context & Background:
- The MUDA case involves alleged illegal land allotments in Mysuru.
- CM Siddaramaiah, his wife, and relatives were accused of benefiting from irregularities.
- The Lokayukta closed the case, but the ED insists there was wrongdoing.
- The HC’s decision keeps the probe alive, escalating political tensions.
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