On November 26, the Supreme Court upheld the Kerala High Court’s rulings quashing bribery and money laundering cases against Indian Union Muslim League (IUML) leader and former MLA KM Shaji. A bench comprising Justice Abhay S Oka and Justice Augustine George Masih dismissed the special leave petitions (SLPs) filed by the State of Kerala and the Directorate of Enforcement (ED) challenging the High Court’s orders.
The case revolved around allegations that Shaji accepted a ₹25 lakh bribe from the manager of Azhikode Higher Secondary School in Kannur for approving a Plus Two course during the 2014–15 academic year. The money laundering case under the Prevention of Money Laundering Act (PMLA) stemmed from this bribery allegation.
Supreme Court’s Observations
After reviewing the investigation records, including the statements of 54 witnesses, the Court found no evidence directly implicating Shaji. Justice Abhay S Oka noted that none of the witnesses, including the manager who allegedly paid the bribe, confirmed that Shaji had demanded or received any money. He remarked,
“Not a single witness says that the demand was made in his presence or money was paid to him… All hearsay… Not a whisper about demand made by the respondent.”
The Court also cautioned against the misuse of allegations, stating, “If we allow this, any politician can be roped in.”
Rejecting the petitioner’s argument to continue the investigation, the bench upheld the High Court’s findings and dismissed both SLPs.
Background and High Court Findings
The Kerala High Court had earlier quashed proceedings initiated by the Vigilance and Anti-Corruption Bureau (VACB) and the Enforcement Directorate (ED):
April 13, 2023: Justice Kauser Edappagath quashed the FIR filed by the VACB, stating no prima facie evidence of illegal gratification by Shaji.
June 19, 2023: Justice PV Kunhikrishnan quashed ED proceedings under the PMLA, relying on the principle established in Vijay Madanlal Choudhary & Others v. Union of India. The High Court reasoned that since the bribery case was quashed, the money laundering case could not proceed.
Case Details
Case No.: SLP(Crl) No. 8039/2023 and SLP(C) No. 28324/2023
Title: State of Kerala v. KM Shaji & Director, Directorate of Enforcement v. KM Shaji
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