BENGALURU: Karnataka HC in a recent ruling quashed ED action against D S Natesha, former commissioner of Mysore Urban Development Authority (Muda), in the alternative site allotment case involving chief minister Siddaramaiah.Justice Hemant Chandanagoudar on Monday invalidated ED’s search operation at Natesha’s residence on Oct 28 and 29, 2024, observing that the statement recorded under Sec 17(1)(f) of the PMLA was invalid due to the absence of “reason to believe”.”Liberty is reserved with the petitioner to initiate action under Section 62 of the PMLA, 2002, against the officer concerned before the appropriate forum… Whether the impugned search and seizure is vexatious or not is a matter for trial,” the judge said while allowing Natesha’s petition.ED had registered an ECIR on Oct 1, 2024 based on a Lokayukta FIR regarding illegal allotment of sites during Natesha’s tenure as Muda commissioner. An ED assistant director then searched Natesha’s residence, seized his phone, transferred data to a hard disk, and examined him under PMLA Sec 17(1)(f).Natesha contested ED’s action, arguing that it lacked evidence to prove “proceeds of crime” were concealed or presented as untainted money under Sec 3. He argued that without credible evidence of money laundering, procedural safeguards were violated, making the process legally unsustainable.He argued that while PMLA Sec 17 authorises the director to permit deputy director-rank officers to handle search operations, in his case, the joint director had authorised the search, though he lacked the authority to do so.
HC quashes ED’s action against Muda ex-commissioner | India News
