ED summons without evidence violates personal liberty, HC says in MUDA case against Karnataka chief minister’s wife

On March 7, the high court allowed two separate pleas against summons issued by the ED earlier this year to B M Parvathi, the wife of the Karnataka CM, and minister B S Suresh. The full copies of the two orders by Justice M Nagaprasanna were published by the high court this week.

“The facts as on the date of registration of ECIR (Enforcement Case Information Report) is that the petitioner is not in possession, enjoyment and usage of sites that were allotted to her, as they have been surrendered and cancellation of allotment has happened. Therefore, there is no laundering in the case at hand,” the HC ruled in the plea filed by Parvathi against the ED summons.

“As submitted by the learned Additional Solicitor General, the Enforcement Directorate has found a larger picture of corruption and laundering in MUDA to which the present petitioner is no way responsible. The information gathered qua others could be taken forward by the Enforcement Directorate in a manner known to law,” the high court ruled in Parvathi’s ED case.

In the case of the urban development minister, the HC ruled that the ED’s move to summon the minister when he was not connected to the MUDA land allotments was violative of his right to life. The HC said that the “petitioner does not even know what has happened in MUDA. He comes into the picture only in the year 2023.”

“Therefore, there is no prima facie case made out by the Enforcement Directorate to summon the petitioner and not stopping at summons, taking entire financial credentials of the petitioner, his family members, his close or distant relatives is undoubtedly violative of petitioner’s right to life,” the HC stated.

Parvathi and Suresh filed pleas in the high court in February against notices issued to them in January to appear for investigations of a case of money laundering registered by the ED over 14 housing sites that were allotted by the MUDA to the CM’s wife in 2021.

The chief minister’s wife is named as accused number two in a predicate corruption case registered by the Karnataka Lokayukta police in September 2024 against CM Siddaramaiah over the allotment of 14 housing sites to her by MUDA in 2021 – in exchange for 3.16 acres of farmland she was gifted by her brother.

Parvathi returned the 14 sites allotted to her last year and her counsel argued in the high court that there are no proceeds of a crime as alleged by the ED.

The Karnataka HC has referred to a January 27, 2025, order of a coordinate bench of the high court to emphasise that an individual cannot be compelled to give a statement in a PMLA case when no incriminating material has been found against them.

“The coordinate Bench holds that when there is no prima facie case established showing that an offence has been committed under the Act and no incriminating material has been elicited at the time of search and seizure, issuance of summons would lack legal authority and it was observed that the petitioner could not be compelled to appear and give statement as that would infringe upon personal right and liberty of that petitioner,” the HC has ruled.

The Karnataka Lokayukta police have filed a report indicating the lack of evidence to substantiate allegations made by RTI activist Snehamayi Krishna of corruption by Siddaramaiah in the allotments of MUDA sites to his wife.

The MUDA land allotment of 14 sites to Siddaramaiah’s wife was however done during the tenure of the BJP in Karnataka from 2019-2023.

The ED, which investigates cases of money laundering, has provisionally attached 142 properties worth Rs 300 crore in connection with its investigation into alleged large-scale irregularities in the allotment of housing sites by MUDA.