Karnataka High Court stays ED summons to CM Siddaramaiah’s wife in MUDA scam

The Karnataka High Court on Monday granted an interim stay on the summons issued by the Enforcement Directorate (ED) to Chief Minister Siddaramaiah’s wife, BM Parvathi, who is also an accused in the alleged Mysore Urban Development Authority (MUDA) scam ..Single judge M Nagaprasanna also stayed the summons issued by ED to Minister Byrathi Suresh, who is not named as an accused, but whom the ED has sought to question in the case.The judge said since he had reserved orders on a related matter—a petition seeking a CBI probe into the scam—earlier today, and had also restrained the Lokayukta police from filing its probe report until pronouncement of the orders on the plea for transfer of probe, it cannot allow any parallel proceedings.“What is the tearing hurry? I cannot allow this as it will frustrate the proceedings before me since I have only heard the related case and reserved orders,” Justice Nagaprasanna said..The Court accordingly stayed the summons issued to both Parvathi and Suresh until February 10 this year..The Court was hearing two petitions filed by Parvathi and Suresh challenging the ED summons.Senior Counsel Sandesh Chouta, appearing for Parvathi, told the Court that ED was trying to initiate parallel proceedings by conducting an investigation into the alleged irregularities in the allotment of land sites by MUDA when the main issue was already being probed by the Lokayukta police and an SIT..Additional Solicitor General of India Arvind Kamath, appearing for ED, told the Court that Parvathi was the second accused in the predicate offence (the illegal land allotment) and was being summoned as she had received proceeds of crime.The Court however, refused to accept the ED’s submission.“What proceeds of crime? As far as I know, she (Parvathi) has already returned the sites,” Justice Nagaprasanna said..Senior Counsel CV Nagesh, appearing for minister Suresh, argued that the summons issued to him should be quashed since the State minister was not even named as an accused in the predicate offence.However, ASG Kamath told the court that Section 50(2) of the PMLA gives the central agency powers to summon even non-accused for acquiring documents and records etc.But the Court said no prejudice will be caused to any of the parties if an interim stay is issued on execution of such summons..“There is no urgency in the matter. What is the hurry now? I do not want my proceedings to get frustrated and I have directed the Lokayukta to not submit its report until my pronouncement. I have deferred the very proceedings related to the predicate offence. The summons so issued by ED will undoubtedly frustrate the proceedings before this Court which is heard and reserved,” the High Court said while ordering an interim stay on the ED summons.