The ED had in September last year registered the money laundering case against Shivakumar and a few others. The case was based on a charge sheet filed by the Income Tax (I-T) Department last year before a special court in Bengaluru on charges of alleged tax evasion and unaccounted transactions worth crores.
In August 2017, the I-T department had raided several premises owned by the Congress leader, his family, and associates and claimed to have unearthed crores of rupees in unaccounted for income.
Additional Solicitor General KM Natraj, appearing for the ED, opposed the bail plea and argued that many documents and material have been recovered during the course of investigation.
He said Shivakumar cannot turn his tainted property into untainted one just by paying tax on it. The probe agency said Shivakumar being an influential and powerful person may hamper the investigation.
On the other hand, senior advocates Abhishek Manu Singhvi and Mukul Rohatgi, appearing for the Congress leader, strongly denied the accusations against the Karnataka MLA. They said he was innocent and that the ED was desperate to keep him in jail.
The court has remanded Shivakumar to judicial custody till 1 October.