Bengaluru: The Special Court designated for MLAs and MPs has postponed its decision regarding the Enforcement Directorate's (ED) objection to the closure report in the Mysuru Urban Development Authority (MUDA) case, which involves Karnataka Chief Minister Siddaramaiah and others.

After hearing arguments from both sides, Judge Santhosh Gajanan Bhat has set April 15 for the ruling.

The ED has contested the closure report submitted by the Karnataka Lokayukta by filing a petition in the Special Court.

In its petition, the ED requested the court to reject the closure report from the Lokayukta, emphasizing the need for further investigation in the interest of justice.

During the proceedings, the ED argued that those implicated in money laundering should not evade accountability.

Siddaramaiah is identified as the primary accused in the MUDA case, with his wife Parvati and brother-in-law Mallikarjunaswamy also named as accused.

Previously, the Karnataka Lokayukta had filed a closure report citing insufficient evidence against the accused.

Senior counsel Madhukar Deshpande, representing the ED, stated, "The Karnataka Lokayukta has submitted a 'B Report' against the four accused in the MUDA scam, thus granting the ED the right to challenge this closure report. The Supreme Court has indicated that individuals involved in money laundering should not be easily exonerated."

Deshpande further noted that the ED had provided comprehensive details of its investigation to the Lokayukta police, which were overlooked, and that the ED's findings would also be presented to the court.

He asserted that as an independent investigative body, the ED is entitled to question the Lokayukta's conclusions. Even if a 'B Report' is filed, the Supreme Court has allowed the ED to contest it in certain instances.

The MUDA case pertains to the alleged improper allocation of 14 plots to the Chief Minister's wife under a 50:50 scheme in exchange for 3.16 acres of land purportedly gifted to her by her brother, the third accused. Allegations suggest that the Chief Minister's wife lacked legal ownership of this land.

The Special Court has mandated the filing of the PCR by September 25, 2024. The Lokayukta police in Mysuru had previously lodged an FIR naming Siddaramaiah and his family members among others. The ED initiated its case on October 1, 2024, and began an investigation under the PMLA.

The Lokayukta had filed a closure report against CM Siddaramaiah, his wife Parvati, brother-in-law Mallikarjunaswamy, and landowner J. Devaraju.

On March 7, the Karnataka High Court annulled the summons issued by the ED to Chief Minister Siddaramaiah's wife, B.M. Parvathi, and state Urban Development Minister Byrathi Suresh regarding the MUDA case.

A complaint was lodged by petitioner Snehamayi Krishna with the Commissioner of the Central Vigilance Committee (CVC) on March 12, questioning the clean chit given to the CM and his family.

The petitioner also filed a writ petition before the Karnataka High Court's division bench, challenging the single bench's decision that dismissed his appeal for a CBI investigation into the MUDA case.

On April 2, the ED submitted its objection to the closure report, while petitioner Snehamayi Krishna also filed a plea questioning the Lokayukta's investigation.

The ED's objections stated: "The investigation revealed illegalities in land acquisition, allotment, generation of proceeds of crime, and undue influence in allotment."

"Evidence collected during the PMLA investigation was shared with the Lokayukta police, but the report indicates that the evidence regarding illegalities in the denotification process of the 3.16 acres of land at Survey number 464 of Kesare village was not considered," the ED concluded.