Thread by @barandbench

CBI Court begins hearing DK Shivakumar's bail plea in connection with a money laundering case.

He is presently in judicial custody.

#DKShivakumar

ASG KM Nagraj begins arguments for Enforcement Directorate.

What is being targeted is laundering of money. It is not his IT activities basically. So declaration before IT Authority is totally irrelevant for PMLA, Natraj.

Crux of the matter is how did he acquire the property, Natraj

PMLA is an independent act and offence, Natraj

It doesn't matter that he paid income tax. He cannot be absolve of his liability under the PMLA, Natraj

Judge: If there is conspiracy under Sec 120B to commit an act which is not a scheduled offence, would you still apply PMLA only because conspiracy is a scheduled offence?

Natraj: Absolutely yes

Inclusion of Sec 120B IPC is the wisdom of the legislation. Once 120B is there, we have jurisdiction to commence proceedings under PMLA, Natraj

By paying tax, tainted transaction / property cannot become untainted. He may be absolved of liability under Income Tax Act but not PMLA , Natraj

His agricultural income for the last 20 years is Rs 1.38 crore, Natraj

From 1997-2014, his average income was Rs 3 lakh. From 2014-16, it was approx Rs 9 lakh .. we have shown how acquisition of property was there..cash, cash, cash.., Natraj

I will not divulge too much.. but no of properties acquired by mother since 1991 is 38, Natraj

For some of the properties, it is shown as loan from DK Kempe Gowda HUD. But for that no return has been filed..Natraj

HUF*

In the name of brother, there are 27 properties since 90s. It was purchased in the same manner ie cash or some loan from the HUF, Natraj

Two bank accounts have cash of more than Rs 2 crores...There are four more account which are yet to be analysed, Natraj

The total transaction in these two accounts is Rs 161 crore, Natraj

There is layering of proceeds of crime, Natraj

Prima facie, they have projected Rs 80 crore in the name of the daughter, borrowing is also of a substantial amount, Natraj

We have the details of the 317 bank accounts now, Natraj

This is the tip of the iceberg. The entire file is before the Court. I cannot divulge much..Natraj

ASG goes through the provisions of the PMLA to support its case.

If it is related to the scheduled offence, it becomes proceeds of crime, Natraj

Natraj reads out Sec 23, 24 of PMLA.

Natraj reads out section 45 PMLA and its "twin conditions".

There is a legislative mandate upon the person who is summoned to speak the truth, Natraj

ASG reads out Supreme Court judgements to assert that burden of proof lies on the accused.

ASG reads out a Supreme Court judgement on Sec 45 and its mandatory conditions.

ASG reads out judgements on rejection of bail.

The income tax complaint as well as our investigation revealed that the unaccounted cash belonged to this accused, Natraj

ASG reads out portions from Supreme Court's judgement in P Chidambaram case.

ASG reads out Supreme Court's judgement in the Nitin Johri case.

His argument that Sec 120B cannot be invoked in absence of a predicate offence was rejected by the Karnataka HC while dealing with the challenge to summons, Natraj

His arguments are "same wine in a new bottle", Natraj

Hearing adjourned for the day.

Matter to be heard next on Saturday.