Bail hearing of DK Shivakumar in PMLA case: Live Updates

The hearing in the bail plea filed by Congress Leader DK Shivakumar in a case filed by the Enforcement Directorate (ED) in connection with a money laundering case under the Prevention of Money Laundering Act (PMLA) is currently underway at the Special CBI Court at Rouse Avenue Court Complex..Earlier this week, the court had sent Shivakumar to 14 days judicial custody. Prior to that, the Special CBI Court had extended the ED’s custody of Congress leader DK Shivakumar till September 17. On September 4, the Court had sent Shivakumar to ED custody till September 13 in connection with a money laundering case under the Prevention of Money Laundering Act (PMLA)..Live updates of today’s hearing follow:.CBI Court assembles to hear DK Shivakumar’s bail plea. ASG KM Nataraj begins continues. What is being investigated is ill-gotten wealth, Nataraj.Income tax act does not deal with ill-gotten wealth. IT provisions not meant to regularize tainted property, Nataraj.Tax is always paid of legally earned money. White always remains white and black always remains black. By paying tax, tainted money cannot become white, Nataraj.When such property is acquired, it may be confiscated by the govt in terms of sec 9 PMLA. It is ultimately the property of the nation. A person cannot enjoy the fruit of his illegality, Nataraj.Opportunity is given under the PMLA act to a person to disclose the source of his income, property, Nataraj.DK Shivakumar was evasive and did not cooperate with the investigation. “Productive time” was about 4 hours during the interrogation, Nataraj.A person has a right with respect to self incrimination but has no right to be evasive and non cooperative, Nataraj.His answers with regards the agricultural property etc was ‘i don’t know’. He gave irrelevant answers, Nataraj.There are number of non-agricultural land which are required to be investigated, Natataj.The brother has 27 properties out of which 10 are purchased through cash or he got it from his father. But, then again, how did the father acquire them needs to be looked into, Nataraj.It for this court to peruse the entire material in the case. At this stage, holding a mini trial is not contemplated or permissible, Nataraj.More than DK Shivakumar having deep roots in the society, I say, the case has deep rooted conspiracy. There is possibility of tampering with evidence, Nataraj.In the IT proceedings, statements were made by certain people which were later retracted. This shows he can influence the witnesses in the case, Nataraj.IT Authority has seized many material which may be used during investigation, Nataraj.We need to take the case to its logical end. What is the actual proceeds of crime may go beyond Rs 800 crore or may become less. There are clear strong material to show that DK Shivakumar is guilty, Nataraj.Being an influential ans powerful person, he may hamper the investigation, NatarajASG reads case laws to support his contentions.Section 45 PMLA as it stands now after the amendment has to be considered by the Court, Nataraj.It’s a serious economic offence. It’s a threat to national economy. It may imbalance the national economy and pose a threat to national security. It has to be dealt this an iron hand, Nataraj.Having regard to the enormity of the materials and the situation, my submission is that at this stage, DKS is not entitled to bail, Nataraj.When the foundation is weak, the superstructure collapses. You have to built the fort by stones and not currency notes, Nataraj.Nataraj concludes his arguments. Senior advocate Abhishek Manu Singhvi begins. This approach is wrong. The court is not hearing a post conviction case, Singhvi.What is the meaning of presumption of innocence if this approach is taken? I object to going into merits at this stage. The approach is trying to scare the judge by throwing huge figures. The amount of money is increasing every day, Singhvi.I have been investigated for 9 hours everyday for the past 22 days. If I say I am not guilty, he says I am evading and that it a non productive hour for them, Singhvi.I would urge my lord to ignore the merits at this stage. The test at this stage is the Triple Test and not the merit test, Singhvi.Can it be said by anybody that I am a flight risk? Conditions may be imposed on me, Singhvi.If he (ED) wants to see my face everyday, I will be there, Singhvi.With the freezing of everything, which document can I forge? Tampering in an illusion. This is a case crying out for triple test, Singhvi.Exception to triple test are terrorism, rape cases… What is the meaning of Article 21 otherwise, Singhvi.“Fruit” is hanging in suspended animation as per their argument. Crime here has to be the tree. The predicate offence is not a schedule offence and is compoundable, It’s a tail wagging without a dog, Singhvi.It is wrong to suppose that the act is so independent that it is unrelated to a crime. Possession and projection must be in relation to a crime. Otherwise it’s a Frankenstein monster. There is no anchor, Singhvi.The only offence here is the IT raid of 2017, Singhvi.Singhvi takes the Court through the meaning and interpretation of ‘proceeds of crime’.How is it possible that you have only charged IT Act against me, which is not even a scheduled offence, and I am not prima facie entitled to bail? This is not a case of conviction, Singhvi.Every money exchange is not money laundering, Singhvi.(ED alleges) for a compoundable offence, I am shaking the fabric of the Indian economy, Singhvi.Section 45 originally had twin conditions which was struck down on the ground on unconstitutionality, Singhvi.Singhvi reads High Court judgements stating that the amendment to Sec 45 has not revived the twin conditionsRecovery from me is Rs 41 lakh only and from unconnected people is Rs 8 crore only. Where is this Rs 143 crore coming from?, Singhvi.The properties in my Assembly returns are the same but their value is different because of market value. This cannot be money laundering, Singhvi.The amount of Rs 108 crore is disclosed in the election affidavit in the name of my daughter, Singhvi.What are these 317 accounts? I have 20 active accounts. Please show me 21st account, I will sit down, Singhvi.Singhvi reads judgements to support his contentions.Singhvi concludes his submission. Senior Advocate Mukul Rohatgi begins.This is a bail case and I am presumed to be innocent, Rohatgi.I am a 7-time MLA and a public figure. What is recovered from my house is Rs 41 lakh. Bail is a rule and jail is an exceltion, Rohatgi.This case relates to one IT raid which happened in 2017. So the investigation is the aftereffect of one raid which recovered Rs 41 lakh. This investigation can now not go beyond that, Rohatgi.Investigation must commense post an ECIR/FIR. This ECIR is only based on the 2017 raid. No complaint has been filed till date. They still have to make up their mind, Rohatgi.There is no scheduled offence of income tax. They have no jurisdiction but for Sec 120B IPC, Rohatgi.Rohatgi reads a Surpeme Court judgement in support of his contentions.The jails are overcrowded because of the approach of the agencies before court. They say DKS is a flight risk, P Chidambaram is a flight risk, Rohatgi.They say nation’s economy is down because Rs 41 lakh is recovered from him. Their approach his keep him in jail, economy of the country is getting affected, Rohatgi.If it is a case of terrorism etc, I can understand. I don’t see any humane manner and compassion in the agencies, Rohatgi.If I have to prove my innocence at this stage, might as well have a trial, RohatgiRohatgi concludes. Senior Advocate Dayan Krishnan begins.They have brought in PMLA through Sec 120B, Krishnan.Conspiracy is an agreement to commit an offence. In the context of PMLA, it has to be a scheduled offence, Krishnan.How can a presumption against an accused arise even before charges are pressed?, Krishnan.Krishan concludes.Order reserved. Order to be pronounced on September 25..Shivakumar was arrested by the ED on September 3 after undergoing four days of interrogation in relation to the case. The ED had cited Shivakumar’s non-cooperation during the questioning as the reason for his arrest..A money laundering case was registered against DK Shivakumar pursuant to an ECIR registered on the basis of information from a complaint filed by the Income Tax authorities for offences punishable under Section 276C(1), 277 and 278 of the Income Tax Act, 1961 read with Section 193, 199 and 120Bof the Indian Penal Code, 1860..The ED has contended that DK Shivakumar generated a huge amount of cash illegally during his tenure as a public servant. However, during the interrogation, he remained evasive and did not explain the illegal generation of money, ED argued. It was stated that Shivakumar made a conscious effort to misguide the investigation and that he has not explained the seizure of cash by Income Tax Department authorities..On August 29, the Karnataka High Court dismissed a batch of petitions filed by Shivakumar and others seeking quashing of summons issued by the ED in relation to the case.