Karnataka High Court permits Enforcement Directorate to continue probe into MUDA case

In a setback to Chief Minister Siddaramaiah and his wife Parvathi, the High Court of Karnataka on Wednesday permitted the Enforcement Directorate (ED) to continue investigation against all persons, weather accused or not, in the Mysore Urban Development Authority (MUDA) case, except former MUDA commissioner D.B. Natesh.

In a setback to Chief Minister Siddaramaiah and his wife Parvathi, the High Court of Karnataka on Wednesday permitted the Enforcement Directorate (ED) to continue investigation against all persons, weather accused or not, in the Mysore Urban Development Authority (MUDA) case, except former MUDA commissioner D.B. Natesh.

A Division Bench comprising Chief Justice N.V. Anjaria and Justice K.V. Aravind passed the interim order while disposing of an application filed by the ED in its appeal against a single judge’s January 27 judgement of quashing ED’s probe against Mr. Natesh. 

The ED’s entire probe in MUDA case was stalled after the single judge’s verdict in Natesh’s case as many of the persons, to whom the ED had issued notice, had secured a stay order from the court citing judgement in Mr. Natesh’s case. The court had also quashed notices issued to Ms. Parvathi and Urban Development Minister Byrathi Suresh citing observations made against ED in Mr. Natesh’s case judgement. 

Also, the Bench permitted the ED to utilise all the documents and materials which may have been gathered, recovered and secured in course of the search and seizure at the place of Mr. Natesh, as well as to utilise the statement recorded, for the purpose of rest of the investigation in accordance with law.

The Bench said that the judgement of single judge, the benefit of which is only limited to Mr. Natesh, cannot be used to stall the entire investigation. The ED had pointed out that Natesh’s case judgement had stalled the probe against Ms. Parvathi, to whom MUDA had allotted 14 sites.

Though the Bench declined to stay the judgement of the single judge in Natesh’s case, it clarified that the judgment in Natesh’s case will not bar the ED from proceeding with investigation in accordance with law, in respect of other accused.