‘Draconian’: Karnataka HC halts ED probe against man years after death of his grandmother, sole accused in predicate offence
The Karnataka High Court pointed out the six-year delay in the ED's action and the dangers of designating properties as "proceeds of crime" long after a case is closed.
In its interim order, the Karnataka HC stayed the ED's proceedings against the grandson of the accused of a 2017 cheating case (Image generated using AI). In a significant ruling on the limits of the Prevention of Money Laundering Act (PMLA), the Karnataka High Court Thursday stayed proceedings against a man whose deceased grandmother was the sole accused in a 2017 cheating case. On the Enforcement Directorate’s (ED) decision to initiate action six years after the primary case abated, the court orally said, “If this is allowed, it would be draconian.”
The case centres on whether the ED can legally pursue “proceeds of crime” when the underlying “predicate offence” has been closed due to the death of the only person charged.
Justice M Nagaprasanna, in the interim order, said, “The matter would require consideration on the score because the sole accused (grandmother) in the predicate offence dies and the proceedings are closed having been abated. Whether the offence would still lie as there was no other accused in the crime except the one that died for the ED to spring into action, six years after the closure of the proceedings and begin to treat the properties of the petitioners as being one of proceeds of crime.”
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