Overview
- The Karnataka High Court, in a judgment delivered on Friday, Nov. 6, 2026, quashed the Enforcement Case Information Report and all subsequent PMLA proceedings against K.Y. Nanjegowda and others.
- Justice Arun held that the ED’s powers under the Prevention of Money Laundering Act are derivative and come into play only after a primary agency registers an FIR or an authorised criminal complaint for a scheduled offence.
- The court said the ED may not file private criminal complaints to manufacture a predicate offence after state police decline to act and described the agency as not being a “super cop.”
- The underlying criminal matter had been closed because sanction to prosecute public servants was not obtained, and the court ruled that closure extinguished any claim of ‘proceeds of crime’ that could sustain PMLA action.
- Lawyers say the ruling strengthens procedural checks on federal probes, could force closer ED coordination with state agencies, and may reduce prolonged standalone money‑laundering actions that unsettle businesses and individuals.