Congress Leader Shivakumar's Bail Plea Dismissed In Money Laundering Case

In what could be another big blow to the Karnataka Congress, the Rouse Avenue Court in Delhi on Wednesday dismissed the bail plea of senior party leader DK Shivakumar, arrested by the Enforcement Directorate (ED) in connection with a money laundering case in late August. Special Judge Ajay Kumar Kuhar passed the order, declining to grant any relief to Shivakumar, who is currently lodged in Tihar jail.

The development comes after the ED on September 21 opposed the bail application before Kuhar, saying Shivakumar may influence witnesses in the money laundering case, which he is accused of and that cannot turn his tainted property into untainted one just by paying tax on it.

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Shivakumar’s counsel, however, had opposed the ASG's submission and that he was innocent and that the ED was desperate to keep him in jail. After hearing arguments from both sides, the court reserved its order on Shivakumar’s bail plea till September 25.

The central agency had in September last year registered the money laundering case against Shivakumar, Haumanthaiah, an employee at the Karnataka Bhavan in New Delhi, and others.

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The case is based on a charge sheet (prosecution complaint) filed by the Income Tax Department against them last year before a special court in Bengaluru on charges of alleged tax evasion and 'hawala' transactions worth crores.

The I-T department has accused Shivakumar and his alleged associate SK Sharma of transporting huge amount of unaccounted cash on a regular basis through 'hawala' channels with the help of three other accused.