NATIONAL: SC Halts ED in Siddaramaiah MUDA Probe
Supreme Court Dismisses ED’s Appeal
The Supreme Court of India, on July 21, 2025, dismissed the Enforcement Directorate’s (ED) appeal challenging the Karnataka High Court’s decision to quash summons issued to Karnataka Chief Minister Siddaramaiah’s wife, BM Parvathi, in the alleged Mysuru Urban Development Authority (MUDA) scam. The ruling, delivered by a bench led by Chief Justice BR Gavai and Justice K Vinod Chandran, upheld the High Court’s verdict, reinforcing judicial oversight over investigative actions.
Karnataka High Court’s Initial Ruling
On March 7, 2025, the Karnataka High Court, under Justice M Nagaprasanna, nullified ED summons against Parvathi and State Minister Byrathi Suresh, citing insufficient grounds for money-laundering charges in the MUDA case. The court emphasized that mere possession of allegedly illegally allotted sites does not constitute an offense under the Prevention of Money Laundering Act (PMLA).
ED’s Challenge and Supreme Court’s Critique
The ED escalated the matter to the Supreme Court, contesting the High Court’s decision to halt its probe. The apex court sharply criticized the ED, cautioning against its potential misuse for political vendettas, with CJI Gavai stating, “Let political battles be fought among the electorate.” This rebuke underscores concerns over the agency’s investigative impartiality.
Allegations in the MUDA Scam
The MUDA case involves allegations of irregularities in the allotment of 14 compensatory sites to Parvathi in a prime Mysuru locality under a 50:50 scheme, in exchange for 3.16 acres of her land acquired by MUDA. The ED’s investigation suggested money-laundering attempts, a claim the courts have consistently dismissed as unsubstantiated.
Siddaramaiah’s Response
Chief Minister Siddaramaiah hailed the Supreme Court’s verdict as a “resounding slap” against the Central Government’s alleged vendetta politics. He accused the opposition BJP of orchestrating a witch-hunt using constitutional agencies like the ED and CBI, vowing to continue his legal battle against such tactics.
Implications for Ongoing Investigations
While the Supreme Court’s ruling halts ED’s summons, the Karnataka High Court previously permitted the agency to continue its broader investigation under the PMLA, except against former MUDA Commissioner DB Natesh. The Lokayukta police investigation into the MUDA case remains active, with no transfer to the CBI, as ruled on February 7, 2025.
Political and Legal Ramifications
The verdict strengthens Siddaramaiah’s position amid political turbulence, with the opposition demanding his resignation following earlier setbacks, such as the High Court’s dismissal of his challenge to the governor’s sanction for prosecution. The judiciary’s stance signals a check on perceived overreach by investigative agencies.
Key Takeaways
- Supreme Court upholds Karnataka High Court’s quashing of ED summons.
- ED cautioned against being used for political battles.
- Lokayukta police continue probe; CBI transfer rejected.
- Siddaramaiah denounces BJP’s alleged misuse of agencies.