The Supreme Court today heard pleas challenging the Karnataka government’s withdrawal of consent for the CBI to prosecute Congress leader and Deputy Chief Minister DK Shivakumar in a disproportionate assets case. The bench, consisting of Justices Surya Kant and Ujjal Bhuyan, expressed reluctance to pass an interim order regarding the ongoing investigation by the Karnataka Lokayukta.
The case arises from two petitions filed by BJP MLA Basangouda Patil Yatnal and the CBI, which assail the Karnataka High Court’s dismissal of their pleas questioning the withdrawal of consent. The High Court had ruled that the dispute should be adjudicated by the Supreme Court under Article 131 of the Constitution, as it involved a conflict between the state and the union.
During the hearing, CBI counsel sought a pass-over on behalf of Solicitor General Tushar Mehta. Senior Advocate Kapil Sibal, representing the Karnataka government, requested additional time to file a reply. Justice Kant and Justice Bhuyan noted that the matter would be heard on a non-miscellaneous day.
Senior Advocate K Parmeswar, representing Yatnal, argued that after the consent withdrawal, the investigation had been handed over to the Karnataka Lokayukta, which he claimed was likely to close the case due to Shivakumar’s position in the state government. In response, Justice Kant raised concerns about the possibility of one proceeding being annulled while another continued, emphasizing that the Court could intervene in such matters.
The matter was adjourned to January 22, 2025, with the Court requesting a counter-affidavit from the Karnataka government.
Background
Shivakumar faced scrutiny following an August 2017 raid by the Income Tax department, which led to the discovery of over Rs. 8.5 crore, including Rs. 41 lakh at his premises. This led to cases under the Income Tax Act and the Prevention of Money Laundering Act (PMLA). Shivakumar was arrested in September 2019, and the case was later referred to the CBI for investigation.
The Karnataka government granted consent for the CBI’s probe, but after the Congress party formed the state government in May 2023, the state withdrew its consent, leading to the current legal challenge. The Karnataka High Court had earlier stayed the investigation, and the Supreme Court refused to entertain a petition by the CBI to lift the stay. However, the Court issued a notice to the Karnataka High Court regarding its ruling in June 2023 and dismissed a subsequent appeal in November.
Case Title: Basanagouda R. Patil (Yatnal) v. The State of Karnataka and Others
SLP(Crl.) No. 12282/2024
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