Bengaluru, Nov. 7 -- The Karnataka High Court has ruled that the Enforcement Directorate cannot revive a money laundering investigation by filing a fresh private complaint after the underlying criminal case has been closed, drawing a clear boundary around the agency's investigative powers under the Prevention of Money Laundering Act (PMLA).
In a significant observation with implications for the ED's investigative jurisdiction, Justice MI Arun held that the agency cannot use a separate complaint to overcome the closure of a predicate offence and subsequently launch or sustain money laundering proceedings against the accused.
The ruling came while quashing the ED proceedings involving Congress leader KY Nanje Gowda and others in connection ...