Overview

• The court held that discharge or quashing of a FIR does not automatically nullify an Enforcement Case Information Report filed under the Prevention of Money Laundering Act.
• A bench led by Justice Wasim Sadiq Nargal dismissed N Kansal’s petition as devoid of merit, rejecting challenges to ED summons under Section 50 and related search and seizure actions.
• The judgment affirms that money laundering under Section 3 of the PMLA is a distinct, ongoing offence evaluated independently from predicate scheduled offences.
• Summons issued under Section 50 of the PMLA are intended to gather factual evidence and do not by themselves designate the recipient as an accused in a money laundering probe.
• The ruling clarifies that Enforcement Directorate investigations can proceed under the PMLA even when the underlying FIR is quashed, preserving procedural safeguards and investigative integrity.