New Delhi, Nov. 7 -- Drawing a sharp line around the powers of the Enforcement Directorate (ED), the Karnataka High Court has held that the agency "is not a super cop to investigate anything and everything which comes into its notice", ruling that it cannot bypass the statutory framework to independently create the foundation for a money-laundering investigation.

The Court held that the ED's powers under the Prevention of Money Laundering Act (PMLA) are "derivative and not original" and that proceedings under the statute cannot continue when the predicate or scheduled offence forming their foundation no longer survives.

Justice M.I. Arun consequently quashed the ECIR and consequential proceedings initiated by the ED against several peti...