
The Enforcement Directorate Wednesday sought 14-day custodial interrogation of Karnataka Congress leader DK Shivakumar, arrested in a money laundering case, in a Delhi court.
Shivakumar, arrested on Tuesday night, was produced before Special Judge Ajay Kumar Kuhar. He was brought to the court after he underwent medical check up at Ram Manohar Lohia hospital here.
Shivakumar's lawyers Abhishek Manu Singhvi and Dayan Krishnan opposed the ED's plea for custodial interrogation saying that he had joined the probe and never absconded. His counsel claimed that Shivakumar has not been given food today and seemed that it is "slow torture" by ED.
Singhvi said the police remand is a rare exception and cannot be granted in a mechanical manner and the ED's plea for Shivakumar's custodial interrogation is perverse.
He was opposing the submissions of the ED which told the court that the Income Tax investigation and statement of various witnesses have revealed "incriminating evidence" against Shivakumar.
The probe agency claimed that he was "evasive and non-cooperative" during the probe and there was phenomenal growth in his income while he was in an important position.
READ| DK Shivakumar arrest: Protests erupt in Karnataka, Ramanagara boils
Ed said his custody is required as he has to be confronted with voluminous documents and to unearth illegal properties.
Custodial interrogation of Shivakumar is necessary as some facts are in his personal knowledge, it said, adding that he tried to misguide the investigation.
It said Shivakumar's interrogation was needed to ascertain the source of money and unearth the modus operandi and that he did not explain cash seized in search.
Additional Solicitor General K M Natraj and advocate N K Matta are representing the ED.
Singhvi opposed the ED's plea for custodial interrogation, saying the agency's submission was without "application of mind" as Shivakumar has already been quizzed for 33 hours and he was not a flight risk.
Unless ED shows that something startling and new has happened, Shivakumar cannot be sent to its custody as he never absconded, he contended.
A bail application was also moved on behalf of Shivakumar and his counsels, including Krishnan, submitted that the whole case was based upon Income Tax search which started from August 2017, and the search leads to an I-T complaint filed on June 13, 2018.
"This is the foundation of the entire charge against me (Shivakumar).
The remand application itself says Income Tax, and this is the offence with respect to which money laundering is done," Singhvi said.
He submitted that the Karnataka High Court has stayed the entire process arising out of the Income Tax case against Shivakumar and the offence under the I-T Act is compoundable (offences where, the complainant enters into a compromise and agrees to have the charges dropped against the accused).
The former cabinet minister and sitting MLA from Kanakapura seat had appeared before the ED for questioning on Tuesday for the fourth time at its headquarters here.
After a long session of grilling, Shivakumar was placed under arrest as per provisions of the Prevention of Money Laundering Act (PMLA).
The ED had in September last year registered the money laundering case against Shivakumar, Haumanthaiah, an employee at Karnataka Bhavan in New Delhi, and others.
Shivakumar had to appear before the ED after Karnataka High Court last week dismissed his petition challenging the summons issued to him by the agency.
The ED had filed the PMLA case against him and others based on a charge sheet (prosecution complaint) filed by the Income Tax Department against them last year before a special court in Bengaluru on charges of alleged tax evasion and hawala transactions worth crores.
The I-T department has accused Shivakumar and his alleged associate S K Sharma of transporting huge amount of unaccounted cash on a regular basis through 'hawala' channels with the help of three other accused.India's most wanted men - Dawood Ibrahim, Hafiz Muhammad Saeed and Zakir-ur-Rahman Lakhvi and Masood Azhar- were on Wednesday formally declared as terrorists by the Union government under the amended Unlawful Activities (Prevention) Amendment Act, which was passed by the parliament in July.
While designating the four as individual terrorists under the first such list issued by the government, the centre pointed out that all four have already been declared as global terrorists and red corner notices had also been issued against them.
"And whereas, the central government believes that Maulana Masood Azhar is involved in terrorism and Maulana Masood Azhar is to be notified as a terrorist under the said Act. And whereas, the central government believes that Hafiz Muhammad Saeed is involved in terrorism and Hafiz Muhammad Saeed is to be notified as a terrorist under the said Act," a home ministry notification said.
The Unlawful Activities (Prevention) Amendment Bill, 2019, passed by Lok Sabha and waiting for the approval of Rajya Sabha, will provide for seizure of properties and putting a travel ban on such individuals once they are declared as terrorists.
While Saeed is the mastermind of 26/11 Mumbai attack, Azhar is the brain behind the terror attack on the Parliament in 2001. Lakhvi also played a key role in the 26/11 terror attack.
He was also involved in the Red Fort attack that took place in 2001. Fugitive Don Dawood is the perpetrator of the 1993 bombings in Mumbai which resulted in more than 250 deaths.The law is in conformity with the international standards and UN convention.
Individual designated as a terrorist can appeal to the Union Home Secretary who will have to dispose of the appeal within 45 days.
In addition, a review committee headed by a sitting or retired judge with at least two retired secretaries of the government of India as members can be approached against the decision of declaration of an individual as a terrorist.
Once designated as a terrorist, the government will take action like seizing his assets etc.
However, details of the action to be taken under the proposed law would be decided when Rules to the Act will be framed after the Bill is passed by Parliament and gets President's assent, government sources said.
The data of the individuals who would be proscribed as terrorist will be shared with foreign governments, sources said. They also said in last 15 years, 42 organisations were declared unlawful and among them, just one -- Deendar Anjuman - has pleaded before the government against the decision.