The case is related to unaccounted cash unearthed by the Income Tax Department during raids in properties owned by Shivakumar and his associates in August 2017.

ED files case against Ktaka Minister DK Shivakumar a year after raids
news Income Tax Case Tuesday, September 18, 2018 - 13:15

In what is more trouble for Karnataka Water Resources Minister DK Shivakumar, the Enforcement Directorate on Tuesday filed a case against him, his business associates and two Karnataka government employees in a money laundering case. The case is related to unaccounted cash unearthed by the Income Tax Department during raids in properties owned by Shivakumar and his associates in August 2017.

A total of more than Rs 7 crore of unaccounted cash was allegedly recovered by Income Tax sleuths in Delhi from properties owned by the senior Congress man including from his Safdarjung enclave residence.

According to sources, the minister has been booked under the Prevention of Money Laundering Act along with his business associate Sachin Narayan, Sunil Kumar Sharma (owners of Sharma Travels). Sources said the other co-accused in the case include Anjainaiya Hanumant and Rajendran— both government employees posted at the Karnataka Bhavan in Delhi.

Rajendran is a caretaker of Karnataka Bhavan and also works for Sharma, the proprietor of Sharma Travels, which runs a luxury bus service. The ED has alleged that Shivakumar and Sharma had set up a massive hawala network to launder money from New Delhi to various parts of the country.  The ED suspects that Hanumanthaiah, the employee of Karnataka Bhavan was responsible for storing the unaccounted money.
 
Reacting to the reports, Shivakumar’s brother MP DK Suresh told reporters, “My brother and I have not indulged in any money laundering.  We are law abiding citizens and are ready to face any investigation."

Tuesday’s development comes after DK Shivakumar secured a bail last Saturday from the Special Economic Offences Court in Bengaluru in connection with a case filed against him by the Income Tax department. The I-T Department has slapped a total of four cases against him and his associates in connection with alleged unaccounted cash recovered from properties related to DK Shivkumar since August 17.

He is facing charges under sections 276C(1) [wilful tax evasion] and 277 [false statement in verification] of the Income Tax Act. Earlier in August, the minister had secured a temporary stay in the proceedings.

The minister, his brother MP DK Suresh and their aides had been raided and questioned by Income Tax sleuths since August 2017. The raids were conducted after Income Tax officials had allegedly found unaccounted cash in the tune of Rs 8 crore during a raid at the Eagleton resort. DK Shivakumar was credited to have prevented a flock of Congress MLAs from Gujarat getting poached by the BJP ahead of a crucial Rajya Sabha election by housing them at the posh resort. In a prestige battle, the Congress was keen on getting Ahmed Patel elected to the upper house of the Parliament.

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