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A Supreme Court bench headed by the Chief Justice of India NV Ramana and consisting of Justices Krishna Murari and Hima Kohli today dismissed a plea moved by the Central Bureau of Investigation (CBI) challenging the order of the Karnataka High Court which had directed the release of cash seized by the CBI from the registered office of a Bengaluru-based company and from the residence of Sachin Narayan, an associate of Karnataka Pradesh Congress Committee president DK Shivakumar.

According to the High Court order, the CBI conducted a search in the company premises of M/s. Wellworth Software Private Limited and in the residence of one Sri. Sachin Narayan and a bundle of cash amounting to Rs.47,98,000 and another bundle of cash of Rs.5,48,000 were seized.

The order further stated that on behalf of the company it had been alleged that it had been carrying on the business of multi-system operators and during the course of business, it collected cash from various local cable operators.

The order noted that the petitioners had contended that the said amount was to be credited to the bank and thereafter to be remitted to the broadcasters, but before it could be deposited into the bank, the same was seized by the police and therefore the petitioners being the rightful owners of the seized cash, are entitled to the interim release.

However, the High Court had rejected these arguments and had held that the alleged search was conducted during the course of the investigation into the FIR registered against Sri. D.K. Shivakumar under the Prevention of Corruption Act alleging amassing of disproportionate assets during the period from April 1, 2013 to April 30, 2018.

In conclusion, the High Court had held, “Having regard to the documents produced by the petitioners, explaining the source of the funds, seized from their possession, it has to be held that the petitioners are the rightful owners of the seized amount and are legally entitled for the interim custody of the seized cash. Even otherwise, the interim release of the seized property does not preclude the respondent from investigating into the source of the said funds of the public servant.”

When the matter came up for hearing before the Supreme Court today, Sanjay Jain, ASG, appeared and submitted that the order of the High Court needs to be set aside. Court, however, stressed that it was not inclined to interfere with the order.

Case Title: CBI v. Wellworth Pvt. Ltd.