Supreme Court clears DK Shivakumar of money laundering charges ahead of elections

New Delhi: The Supreme Court has dismissed a 2018 money laundering case against Karnataka's Deputy Chief Minister, DK Shivakumar.

The case involved allegations of tax evasion and hawala transactions amounting to crores.

The verdict is presenting relief to the Congress leader ahead of the upcoming Lok Sabha polls.

The Enforcement Directorate (ED) had arrested Shivakumar in September 2019, following investigations triggered by Income Tax Department raids on premises associated with him and his aides in 2017, where nearly Rs 300 crore in cash was allegedly recovered. While Shivakumar obtained bail in October 2019, he accused the BJP of political vendetta.

The Supreme Court's decision took into account the interpretation of the 1998 judgment concerning whether Section 120B of the Indian Penal Code (IPC) could be a standalone offense, allowing the ED to invoke the Prevention of Money Laundering Act (PMLA).

The court highlighted its November 2023 ruling, stating that criminal conspiracy under Section 120B of IPC would be treated as a scheduled offense under PMLA only if it involves conspiracies to commit an offense listed in the Act. The ED has sought a review of this ruling.

While dismissing the case, the court mentioned that the agency could seek a recall of the order if the review request is accepted.

Shivakumar, who had previously approached the Karnataka High Court and the Supreme Court to dismiss the ED summons, hailed the recent order as a "big relief." He reiterated his accusations against the BJP, alleging harassment through central agencies.

It's worth noting that another corruption case involving Shivakumar has sparked controversy in Karnataka, with the state government withdrawing CBI sanction to probe the case. The CBI has challenged this decision in court.