DK Shivakumar remanded to ED custody till Sept 13 in money laundering case

Team Udayavani, Sep 4, 2019, 9:01 PM IST

New Delhi: Congress leader D K Shivakumar, arrested in a money laundering case, was sent to the ED custody till September 13 by a Delhi court on Wednesday.

“The allegations made against the accused are serious in nature. The investigation in my considered view would justify the custodial interrogation of the accused keeping in view the nature of the offence,” Special judge Ajay Kumar Kuhar said.

“He has to be confronted with voluminous incriminating material and other crucial aspect of the case with regard to the source of the money and his further interest in the other properties and accounts. Therefore, I consider it to be a fit case for grant of custody of the accused to Enforcement Directorate,” the judge added.

The court passed the order after the ED sought 14-day custodial interrogation of Shivakumar, arrested on Tuesday night, claiming that he was evasive and non-cooperative in the probe and there was “phenomenal growth” in his income while he was in important position.

Shivakumar, 57, was produced after his medical check up in Ram Manohar Lohia Hospital.

Shivakumar’s counsel opposed the Enforcement Directorate’s allegations and said that the Congress leader has already been quizzed for 33 hours by the agency and he is not a flight risk.

After the court passed the order, Shivakumar’s counsel sought permission for the Congress leader to make appeal to his supporters, who have come in large number outside the court premises, to maintain peace.

The court denied the permission and asked the investigation officer to ensure that Shivakumar does not do so.

However, it allowed Shivakumar to meet his family members in the courtroom itself.

During the arguments, Shivakumar’s lawyers Abhishek Manu Singhvi and Dayan Krishnan opposed the ED’s plea for custodial interrogation saying he had joined the probe and never absconded.

His counsel claimed that Shivakumar has not been given food today and seemed that it is “slow torture” by ED.

Singhvi said the police remand is a rare exception and cannot be granted in a mechanical manner and the ED’s plea for Shivakumar’s custodial interrogation is perverse.

He was opposing the ED’s submissions which told the court that Income Tax investigation and statement of various witnesses have revealed “incriminating evidence” against Shivakumar.

The probe agency claimed that he was “evasive and non-cooperative” during the probe and there was phenomenal growth in his income while he was in an important position.

The ED said his custody is required as he has to be confronted with voluminous documents and to unearth illegal properties.

Custodial interrogation of Shivakumar is necessary as some facts are in his personal knowledge, it said, adding that he tried to misguide the investigation.

It said Shivakumar’s interrogation was needed to ascertain the source of money and unearth the modus operandi and that he did not explain cash seized in search.

Additional Solicitor General K M Natraj and advocate N K Matta are representing the ED.

Singhvi opposed the ED’s plea for custodial interrogation, saying the agency’s submission was without “application of mind” as Shivakumar has already been quizzed for 33 hours and he was not a flight risk.

Unless ED shows that something startling and new has happened, Shivakumar cannot be sent to its custody as he never absconded, he contended.

A bail application was also moved on behalf of Shivakumar and his counsels, including Krishnan, submitted that the whole case was based upon Income Tax search which started from August 2017, and the search leads to an I-T complaint filed on June 13, 2018.

“This is the foundation of the entire charge against me (Shivakumar). The remand application itself says Income Tax, and this is the offence with respect to which money laundering is done,” Singhvi said.

He submitted that the Karnataka High Court has stayed the entire process arising out of the Income Tax case against Shivakumar and the offence under the I-T Act is compoundable (offences where, the complainant enters into a compromise and agrees to have the charges dropped against the accused).

The former cabinet minister and sitting MLA from Kanakapura seat had appeared before the ED for questioning on Tuesday for the fourth time at its headquarters here.

After a long session of grilling, Shivakumar was placed under arrest as per provisions of the Prevention of Money Laundering Act (PMLA).

The ED had in September last year registered the money laundering case against Shivakumar, Haumanthaiah, an employee at Karnataka Bhavan in New Delhi, and others.

Shivakumar had to appear before the ED after Karnataka High Court last week dismissed his petition challenging the summons issued to him by the agency.

The ED had filed the PMLA case against him and others based on a charge sheet (prosecution complaint) filed by the Income Tax Department against them last year before a special court in Bengaluru on charges of alleged tax evasion and hawala transactions worth crores.

The I-T department has accused Shivakumar and his alleged associate S K Sharma of transporting huge amount of unaccounted cash on a regular basis through ‘hawala’ channels with the help of three other accused.