Supreme Court dismisses Karnataka Deputy CM D K Shivakumar's plea challenging CBI's FIR against him in disproportionate assets case

New Delhi: The Supreme Court on Monday declined to consider a plea by Karnataka Deputy Chief Minister D K Shivakumar for quashing a CBI case against him related to a possession of disproportionate case lodged on alleged recovery of unaccounted for cash in a raid by the Income Tax authorities.

A bench of Justices Bela M Trivedi and Satish Chandra Sharma dismissed the petition filed by the senior Congress leader after hearing his counsel senior advocate Mukul Rohatgi.

The counsel contended Income Tax sleuths raided his alleged premises on August 2, 2017. There can't be two proceedings arising out of the same incident, when the I-T proceedings are on, there can't be a CBI case.

The court, however, pointed out that I-T authorities cannot proceed under the Prevention of Corruption Act.

Rohatgi also referred to the issue of applicability of Section 17A --related to mandatory prior approval for prosecuting a public servant-- introduced in 2018 in the PC Act. The provision puts an embargo upon an enquiry and investigation until prior permission is taken, he said.

He said since the FIR is dated October 3, 2020, Section 17A would come into play here.

The counsel said the Supreme Court had on January 16, 2024 gave a split verdict on the issue of obtaining prior sanction before initiating inquiry, enquiry or investigation against public servants under the Prevention of Corruption Act.

"One judge is in my favour in principle on Section 17A, though the matter has been referred to the larger bench," he said.

The bench said the split verdict can't be a basis of quashing the case.

The counsel also submitted that proceedings initiated against the petitioner by the Enforcement Directorate has already been quashed by the apex court.

In the case, the bench had initially asked, "How can the HC stay the sanction order granted by the government? It is unheard of."

The court said since events are different, a sum of Rs 41 lakh was recovered, the proceedings can't be quashed.

The CBI had registered the disproportionate case against Shivakumar on October 3, 2020, based on consent given by the previous BJP government on September 25, 2019. They had come upon a reference by the Enforcement Directorate to corruption charges that emerged after an Income Tax probe.

On November 28, 2023, the Congress government, however, withdrew consent for the agency to probe assets of Shivakumar.

On December 26, 2023, the state government referred the matter to the Karnataka Lokayukta for investigation. The CBI, however, challenged the decision before the Karnataka High Court, which is pending consideration.