SC refuses to stay criminal proceedings against D K Shivakumar in tax evasion case

The Supreme Court on August 27 refused to stay criminal proceedings against senior Congress leader D K Shivakumar in a case registered by the Income Tax Department for allegedly evading tax. A bench of Chief Justice S A Bobde, Justices A S Bopanna and V Ramasubramaniun allowed the Income Tax department to file their reply in the case.

"Zoheb Hussain, counsel appearing for the respondent (IT Dept), prays for and is granted two weeks' time to file counter-affidavit. Rejoinder-affidavit, if any, be filed by the petitioner within one week thereafter. List the matter after four weeks," the bench said.

The I-T Department had filed a complaint against Shivakumar and others after it conducted a search in August 2017 under the provisions of Income Tax Act as well as Indian Penal Code.

Shivakumar in his appeal before the apex court has challenged the November 2019 Karnataka High Court order which upheld a trial court decision to reject his plea seeking discharge in the case.

Senior advocate Mukul Rohatgi, appearing for Shivakumar, pressed for staying the criminal proceedings, saying irreparable harm would be caused to the politician if interim stay is not granted.

The senior advocate had earlier questioned the validity of the sanction to prosecute the senior Congress leader.

The I-T department has accused Shivakumar and his alleged associate S K Sharma of indulging in transactions involving huge amounts of unaccounted money on a regular basis through 'hawala' channels with the help of three other accused.