An advocate in Karnataka has questioned a summons issued to him by the Directorate of Enforcement (ED) in connection with a case against Congress MLA K C Veerendra Puppy, 48, who was arrested by the central agency on August 24 for allegedly laundering money through his betting and casino businesses in India and Dubai.
The advocate, Anil Gowda H, whose properties were also searched by the ED on August 22 and 23 in the crackdown on the MLA’s casino and gaming businesses, has claimed that the summons issued to him on August 24 is a violation of Supreme Court directives against allowing criminal proceedings against lawyers without judicial oversight.
Senior counsel Vikas Pahwa, who appeared for Gowda on behalf of the advocate on record in the case, Shashwat S Prakash, argued that the summons issued to an advocate registered with the bar in Karnataka was against Supreme Court orders in cases against lawyers.
The ED’s standing counsel, Madhukar Deshpande, however, argued that Gowda’s association with Puppy was beyond a professional relationship and involved payments from the gaming businesses of the MLA that were routed through three companies—Diamond Softech, ASVSA Enterprises LLP, and ABH Infrastructure.
The Karnataka High Court raised questions regarding the legal sanctity of the summons issued to Gowda in the light of Supreme Court orders directing judicial oversight in such cases but has posted the matter for further hearing on September 4 after the ED counsel told the court that the summons issued is now infructuous and that the assistant solicitor general would present arguments before any fresh summons is issued.
Gowda, the brother of Kusuma H, the losing Congress MLA candidate from the R R Nagar Assembly seat in Bengaluru in 2023, has called into question the ED summons, sought that the ED probe be declared “illegal and bad in law”, and the agency be directed not to take coercive action against him.
Arguments in court
Gowda’s counsel told a single-judge bench of the high court on Friday that the ED was seeking the details of payments received by the advocate in his professional capacity of advising and representing companies associated with Puppy.
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The ED is asking for details of payments received in cybercrime cases, professional fees, and Value Added Tax, the high court was informed.
The ED, however, told the court that the principal accused, Puppy, has stated that his ties with Gowda were not for professional legal services. The ED argued that Gowda was associated with the casinos of the MLA before enrolling as an advocate.
The ED also told the court that it needed Gowda’s assistance with regard to mobile phones and laptops that had been seized during the agency’s searches on August 22 and 23. The ED alleged that a lot of gullible people had suffered huge losses through the betting and gaming apps operated by the MLA’s firms and that funds were routed to the advocate as well.
The ED also argued that Gowda was a full-fledged partner in Puppy’s casino and gaming businesses and not a mere professional advocate, and that he was using his advocate credentials as a shield against prosecution in the case.
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The money laundered through the businesses of the MLA was handled in a personal capacity by Gowda, the ED has alleged. The central agency has also claimed that Anil Gowda received funds through Diamond Softech, AVSVA Enterprises and ABH Infrastructure, which are associated with Puppy.
Gowda’s counsel, however, have claimed that he is not associated with Diamond Softech, that he was initially a partner in AVSVA Enterprises but later quit the firm, and that he draws a salary as an advocate for ABH Infrastructure but is not connected to Puppy.
When ED searches led to MLA Puppy’s arrest
K C Veerendra Puppy is considered to be a close associate of Karnataka Deputy Chief Minister D K Shivakumar. The ED, which arrested the MLA on August 24 in Sikkim, said he was in possession of a Mercedes-Benz that was bought with proceeds of money from a gaming app linked to a cheating case. Puppy’s arrest followed ED’s searches at 31 locations linked to him, his brothers, and his associates. Gowda’s premises were among those searched.
Puppy is the son-in-law of the Kannada film actor Doddanna and was arrested in 2016 by the CBI for attempting to launder money during the demonetisation period. He was arrested by the CBI after Income Tax officials seized ₹ 5.7 crore of cash in new ₹ 2,000 notes in a secret chamber in the bathroom of his Chitradurga home. The case was later closed for want of incriminating evidence of illegal sources for the funds.