Bengaluru, 2 April

The Karnataka High Court on Wednesday allowed the Directorate of Enforcement (ED) to investigate all accused persons in the MUDA site allotment case, except former MUDA commissioner DB Natesh.

A division bench comprising Chief Justice NV Anjaria and Justice KV Aravind ruled that the ED is entitled to proceed with the investigation against other accused individuals in accordance with the law.

The ED had approached the division bench seeking a stay on a single-judge bench order that had quashed the summons issued to Natesh.

"Investigation under the PML Act is not to be hampered or put on hold, nor would its continuance be affected adversely in relation to the alleged scam. The investigating authority—the applicant, Directorate of Enforcement—notwithstanding the judgment and order of the learned single judge impugned in this appeal, is allowed to investigate the matter," the court stated.

It further stated that the impugned judgment and order should not prevent the ED from proceeding with the inquiry and investigation in accordance with the law concerning other accused individuals and persons who may need to be questioned or investigated in connection with the case, notwithstanding the impugned judgment and directions in the petitioner's case.

"As the court has permitted the inquiry and investigation to continue against other accused persons, the applicant—Enforcement Directorate, the investigating agency—shall be at liberty to utilise all documents and materials gathered, recovered, and secured during the search and seizure at the petitioner’s premises. The agency may also use recorded statements for the remainder of the investigation, in accordance with the law," the division bench added.

Alongside the Lokayukta, the ED is probing the MUDA site allotment case, in which Chief Minister Siddaramaiah, his wife Parvathi BM, her brother Mallikarjuna Swamy, and land seller Devaraju are among the accused.

In the MUDA site allotment case, it is alleged that compensatory sites were allotted to Siddaramaiah's wife in an upmarket area in Mysuru, which had higher property value as compared to the location of her land, which had been 'acquired' by the MUDA.

The MUDA had allotted plots to Parvathi under a 50:50 ratio scheme instead of 3.16 acres of her land, where it developed a residential layout.