Congress leader D.K. Shivakumar, who is in judicial custody in a money-laundering case, was on Thursday sent to Tihar jail from Ram Manohar Lohia Hospital where he was admitted for a medical check-up.
Opposing his bail plea in the special court, the Enforcement Directorate (ED) said he could not be absolved of his alleged liability under the Prevention of Money Laundering Act merely by paying income tax.
The next hearing by the special court on his bail petition has been posted to Saturday.
The agency said declaration of a property was irrelevant, as the real question was as to how it was acquired. “By just paying tax, tainted property cannot be turned into untainted,” it said.
The agency, represented by Additional Solicitor General (ASG) K.M. Nataraj, submitted before the court that if released, Mr. Shivakumar might influence the persons who were in the knowledge of his “grave offence” and were yet to be examined by the ED.
The ASG said once Section 120-B of the Indian Penal Code was invoked in a case, the ED had the jurisdiction to commence proceedings under the Act.
Mr. Nataraj said the Congress leader did not cooperate during the probe and could not explain the source of assets worth ₹800 crore.
Mr. Shivakumar told the agency that he was an agriculturist.
“A sum of ₹1.38 crore from agricultural income is projected by him in the last 20 years. Entire property is ₹800 crore. Saying that ₹1.38 crore was invested and became ₹800 is unbelievable,” the agency said.
This argument was opposed by senior advocate Dayan Krishnan, who appeared for the accused.
Hebbalkar’s statement
In the same case, Karnataka Congress MLA Laxmi Hebbalkar on Thursday appeared before the ED for recording her statement. The agency had earlier summoned her on September 14, asking to join the investigation. She, however, sought an exemption as she was engaged in flood-relief operations in her constituency.
The case is based on a chargesheet filed last year by the Income Tax Department, alleging tax evasion and “hawala” transactions running into crores. The ED had earlier this month examined Mr. Shivakumar’s daughter Aishwarya.
(With agency inputs.)
