The Karnataka High Court has granted interim relief to Jitendra Mohandas Virwani, Chairman of the Embassy Group, by staying all proceedings initiated by the Enforcement Directorate (ED) in a money-laundering case registered under the Prevention of Money Laundering Act, 2002.
Justice Mohammad Nawaz passed the interim order while hearing a criminal petition filed under Section 482 of the Code of Criminal Procedure, now corresponding to Section 528 of the
Bharatiya Nagarik Suraksha Sanhita. The petition challenges the Enforcement Case Information Report (ECIR) dated March 25, 2025, and the ensuing summons issued by the ED.During the hearing, Virwani’s counsel informed the court that the genesis of the ED investigation lay in an FIR registered at Hoskote
Police Station for alleged offences under various provisions of the Indian Penal Code.
However, following the completion of the probe, the police had filed a final report recommending closure of the case. Relying on the said report, the defence argued that once the predicate offence—on which the ED action is based—ceases to exist, the foundation for continuing proceedings under the PMLA automatically collapses.
The petitioners cited previous rulings of coordinate benches of the Karnataka High Court, which have held that PMLA proceedings cannot survive independently once the predicate case has been closed. They also placed reliance on Supreme Court decisions affirming the same principle.
Accepting the submissions at the preliminary stage, Justice Nawaz overruled office objections and directed that notice be issued to the State of Karnataka and other respondents. The court ordered that all consequential proceedings arising from the ECIR, including coercive steps by the ED, shall remain stayed until the next date of hearing.
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