High Court of Karnataka – Artifex.News https://artifex.news Stay Connected. Stay Informed. Wed, 23 Sep 2026 04:07:00 +0000 en-US hourly 1 https://wordpress.org/?v=7.1.3 https://artifex.news/wp-content/uploads/2026/05/cropped-cropped-app-logo-32x32.png High Court of Karnataka – Artifex.News https://artifex.news 32 32 Court refuses to quash money laundering proceedings against Bengaluru-based real estate firm https://artifex.news/article71496345-ecerand29/ Wed, 23 Sep 2026 04:07:00 +0000 https://artifex.news/article71496345-ecerand29/ Read More “Court refuses to quash money laundering proceedings against Bengaluru-based real estate firm” »

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A view of the High Court of Karnataka.
| Photo Credit: File photo

The High Court of Karnataka has refused to quash criminal cases and money-laundering proceedings against Ozone Urbana Infra Developers, a Bengaluru-based builder and developer, and its promoters on allegations of cheating homebuyers by collecting huge advances from them and diverting funds on a large scale for purposes alien to the construction of the promised apartments.

Justice M. Nagaprasanna passed the order while dismissing petitions filed by the company and its promoters, Vasudevan Sathyamoorthy, his wife Prua Vasudevan, and others. The petitioners had challenged FIRs registered on complaints filed by aggrieved homebuyers and two Enforcement Case Information Reports (ECIRs) registered by the Enforcement Directorate (ED) in 2022 and 2025, as well as the ED’s provisional attachment of assets worth ₹423.38 crore.

The court noted that the complaints disclosed a pattern in which homebuyers were induced through attractive subvention schemes, tripartite agreements and assurances of timely possession, only to be left without homes or refunds. In one case, a complainant discovered that a flat booked in 2017 had been sold to another person in 2021 without the buyer’s knowledge or consent.

“The money is received, the property is not delivered, the loan burden remains with the homebuyer, and the very property promised to him is allegedly sold to another,” the court said, adding that such allegations “travel far beyond the realm of a mere contractual default”.

ED proceedings

The company argued that the ED proceedings were illegal as the predicate offences, namely the FIRs filed by homebuyers, had either been stayed or quashed. However, the court rejected the contention, noting that the 2025 ECIR was based not only on the earlier FIRs but also on a CBI FIR registered pursuant to Supreme Court directions to probe an alleged collusive nexus between builders and financial institutions to cheat homebuyers.

The CBI FIR alleged that Ozone Urbana, in connivance with officials of Indiabulls Housing Finance (now Sammaan Capital), devised a subvention scheme promising “No Pre-EMI till delivery of possession” to lure homebuyers. Loans were allegedly disbursed directly to the builder without adequate due diligence, and the company subsequently defaulted on pre-EMI payments, leaving homebuyers burdened with EMIs for flats that were never delivered.

The ED’s provisional attachment order, issued on October 4, 2025, covered properties worth ₹423.38 crore, including unsold inventory and land parcels belonging to the company and its promoters. The ED alleged that of the approximately ₹927.22 crore collected from more than 1,351 homebuyers, a substantial portion was siphoned off to group companies and personal accounts.

The court also emphasised the gravity of economic offences, observing that they affect a large number of stakeholders, particularly homebuyers who invest their life savings in the hope of owning a home.



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Karnataka HC orders court-monitored probe into KPSC irregularities; sets up SIT headed by DGP Alok Kumar https://artifex.news/article71491421-ecerand29/ Tue, 22 Sep 2026 15:31:00 +0000 https://artifex.news/article71491421-ecerand29/ Read More “Karnataka HC orders court-monitored probe into KPSC irregularities; sets up SIT headed by DGP Alok Kumar” »

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The Karnataka High Court on Monday ordered a court-monitored investigation — by constituting a Special Investigation Team (SIT) headed by senior IPS officer and Director-General of Police Alok Kumar — into the alleged large-scale irregularities in the recruitment processes conducted by the Karnataka State Public Service Commission (KPSC).

While giving 100 days for the SIT to complete the investigation and submit the final report, the court also directed it to submit an investigation progress report every 30 days.

Yatnal and others’ petition

Justice M. Nagaprasanna passed the order on petitions by Basanagouda R. Patil Yatnal, MLA, All Karnataka State Students’ Association, and Manjunath. The petitioners had sought a probe by the Central Bureau of Investigation (CBI) into two cases: on selection of a daughter of the KPSC’s suspended chairperson Shivashankar S. Sahukar to the post of Industrial Extension Officer; and alleged illegalities in the process of selection of candidates to 400 posts of veterinary officers.

The court observed that, in the peculiar facts and circumstances of the cases, it was not appropriate to permit the investigation to continue either with the Criminal Investigation Department (CID) or the jurisdictional police, but it was equally not convinced that entrusting the probe to the CBI was the only available course.

Meanwhile, the court has named IPS officers Divya V. Gopinath, Anoop A. Shetty, Kushal Choksey, and Kshama Mishra as other members of the SIT.

The court also directed the State government to issue a notification declaring this SIT to be a police station for the purposes of investigation.

Independent and impartial

“The SIT shall conduct the investigation independently, impartially and uninfluenced by any observation made in this order on the merits of the allegations,” the court said.

The court also made it clear that the investigation by the SIT shall not be confined by the persons presently named, the allegations presently made or the contours presently perceived. “If the evidence gathered during investigation reveals involvement of any other person, offence, transaction or act, having a nexus with the subject matter of investigation, the SIT shall follow the evidence wherever it leads, strictly in accordance with law,” the court said.

The court gave liberty to the SIT to use the services of forensic, cyber, financial, technical or other specialised assistance for an effective investigation.

The court said that the SIT should extend cooperation to the Enforcement Directorate (ED), which has re has taken up probe under the provisions of the Prevention of Money Laundering Act, and receive information from ED.

KPSC’s troubled history

Tracing the “troubled history” of KPSC recruitments since 1998, the court noted that history reveals allegations recurring with disquieting similarity such as nepotism, favouritism, fraud, corruption, tampering of OMR sheets and even allegations of answers being written for candidates elsewhere, while the examination was under way.

“History, it is said, should teach institutions. It cannot be permitted merely to repeat itself, recruitment after recruitment, at the cost of thousands of aspirants whose only capital is merit and whose only expectation is fairness,” the court observed.

Pointing out that thousands of young men and women spend the most productive years of their lives preparing for these examinations believing that merit will ultimately have its day, the court said that when a post is sold, an OMR sheet is tampered with, marks are manipulated or a selection is engineered, merit is not merely defeated; it is betrayed.”

Such betrayal, the court said, “breeds cynicism among the young and creates the dangerous perception that constitutional avenues themselves are available for purchase. A recruitment scam in a Public Service Commission in particular is not merely a theft of post; it is a theft of equality of opportunity.”

Published – September 21, 2026 06:40 pm IST



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Karnataka High Court bars ICTPI from enrolling candidates https://artifex.news/article68868300-ecerand29/ Fri, 15 Nov 2024 01:13:00 +0000 https://artifex.news/article68868300-ecerand29/ Read More “Karnataka High Court bars ICTPI from enrolling candidates” »

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The High Court of Karnataka restrained Bengaluru-based Institute of Chartered Tax Practitioners India (ICTPI) from enrolling candidates into any course, certifying any person to practise as an income-tax or goods and services tax practitioner and custom broker, etc., till further orders from the court.

Justice Suraj Govindaraj passed the interim order on a petition filed by the Institute of Chartered Accountants of India (ICAI), which has complained that ICTPI is offering courses illegally.

The court specifically restrained the ICTPI from enrolling candidates in Post Graduate Diploma in Taxation, Professional Skill Qualification, Recognition for Prior Learning and similar courses in relation to tax practice, etc.

The court also restrained ICTPI from enrolling any person or body under the category of affiliates, associates, fellows, honorary and academic for the purpose of offering any courses relating to tax laws and related courses or for issuance of any licences, certificates, etc.

While contending that “ICTPI appears to have created fictitious courses to offer to the general public without any legal recognition,” the ICAI has said that the Ministry of Finance, the Registrar of Companies and the University Grants Commission have not taken any action against the ICTPI despite submitting several representations about the alleged illegal activities of ICTPI, which is a company registered under Section 8 (formulation of companies with charitable objects, etc) of the Companies Act, 2013.

“The courses offered by the ICTPI are in contravention of Section 15A of the Chartered Accountants Act, 1949, which restricts universities or bodies from offering courses in the field of education dealt with by the petitioner institute. The ICTPI is prescribing courses on its whims and fancy to mislead the general public that is, in fact, a legitimate degree offered by it to the students under a statute, which is not the case,” the ICAI claimed in its petition.

The ICAI has stated in the petition a large number of candidates are paying thousands of rupees from their head-earned monies in the form of fees to enrol for the unauthorised courses, being unaware of the courses offered by ICTPI.

Pointing out that the name of ICTPI is almost identical and similar to the name of the petitioner-institute, it has been stated in the petition that this gives a misleading impression to the public at large that ICTPI is related to or somehow affiliated/associated with ICAI.



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