Karnataka High Court orders CBI to release Rs 53.46 lakh seized from associate of DK Shivakumar

The Karnataka High Court recently directed the Central Bureau of Investigation (CBI) to release Rs. 53.46 lakh seized by it from Sachin Narayan, a close associate of Congress leader DK Shivakumar [Wellworth Software Pvt Ltd vs CBI]. .The CBI has seized the amount during the probe of a case against Shivakumar under the Prevention of Corruption Act (PC Act). .Justice John Michael Cunha of the High Court, while allowing the petition filed by Wellworth Software Pvt Ltd and Sachin Narayan, observed that the money seized had no nexus with the alleged disproportionate assets under investigation. ."In the absence of any prima facie material to show that the seized amount has any nexus with the alleged disproportionate assets investigated by the respondent police, in my view, the petitioners are entitled for the interim custody of the seized cash," the Court ordered. .The case has its genesis in an FIR registered against DK Shivakumar under Section 13(2) read with Section 13(1)(e) of PC Act, 1988. .During the course of investigation, the CBI police had conducted searches at the company premises of M/s. Wellworth Software Private Limited and at the residence of one Sachin Narayan. An amount of Rs. 47,98,000 along with another bundle of cash of Rs. 5,48,000, were seized from his residence and the same was produced before the special judge..By order dated November 20, 2020, the special judge rejected the application filed by the petitioners to have the money released after which they moved the High Court. .Wellworth Software Private Limited and Sachin Narayan contended that the seized amount was the money collected from various local cable operators during the course of the business of Wellworth. The said money was to be credited to the bank and thereafter to be remitted to the broadcasters, but before it could be deposited into the bank, the same was seized by the police, it was argued. The money being unconnected to the matter under investigation, retention of the same would not be necessary either for the purpose of investigation or for the purpose of eventual trial, it was submitted. Special Public Prosecutor, appearing for CBI, opposed the plea contending that Narayan who has been running the aforesaid company, is a business partner of the wife of DK Shivakumar, who is accused in the crime. The investigation into the source of her funds is in progress. Under the said circumstances, the petitioners are not entitled to the release of the money seized, submitted the counsel for CBI..The Court examined the documents produced by the petitioners which pointed that as per the business practice of the Company, such amounts used to be regularly collected from the various cable operators and a receipt was issued in acknowledgement of the same. ."There is no prima facie material to show that the cash seized from the registered office of the company or the residence of the petitioner is anyway related to the proceeds of the crime alleged against Sri. D.K. Shivakumar or his wife," the Court concluded. .The Bench, therefore, opined that the petitioners are the rightful owners of the amount seized and are legally entitled to the same."Having regard to the documents produced by the petitioners, explaining the source of the funds seized from their possession, it has to be held that the petitioners are the rightful owners of the seized amount and are legally entitled for the interim custody of the seized cash. Even otherwise, the interim release of the seized property does not preclude the respondent from investigating into the source of the said funds of the public servant. Petitioners are not accused of abetting the offence by the public servant. In the said circumstances, there is no justification to retain the cash belonging to the petitioners," the order said. .The Court, therefore, set aside the order of the Additional City Civil and Sessions judge and allowed the petitions. .[Read Order]