SUPREME COURT QUASHED MONEY LAUNDERING CASE AGAINST KARNATAKA DY CM DK SHIVAKUMAR AND AIDE

The Supreme Court in the case Anjaneya Hanuman thaiah v. Principal Director of Income Tax and Ors and has allowed the appeals filed by Karnataka Deputy Chief Minister DK Shivakumar and his aide challenging the criminal proceedings in a 2018 money laundering case.

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The bench comprising of Justice Surya Kant and Justice KV Viswanathan in the case observed and has allowed the petition filed by the Congress leader and his aide Anjaneya Hanumanthaiah against a 2019 Karnataka High Court verdict wherein upholding the summonses issued to them by the Enforcement Directorate. Thus, the primary reason cited by the single-judge bench of the high court was that Section 120B of the Indian Penal constituted a stand-alone offence adequate to invoke the Prevention of Money Laundering Act.

The court held that same as ‘unsustainable’ by the apex court in view of its recent Pavana Dibbur judgment.

Therefore, the case stems from allegations of money laundering against Shivakumar and four others, following income tax raids in 2017 where unaccounted cash worth over Rs seven crore was reportedly seized.