HC rejects plea by firm linked to MLA Veerendra
BENGALURU: The Karnataka High Court has officially dismissed a petition filed by a partnership firm and associates linked to Chitradurga MLA K.C. Veerendra, which sought the release of financial assets, bank accounts, and documents seized by the Enforcement Directorate (ED).
A single-judge bench presided over by Justice M. Nagaprasanna delivered the ruling after hearing arguments involving ‘Puppies Tours and Travels Limited’ based in Challakere, along with co-petitioners including K.C. Nagaraja, Thippeswamy Kondlahalli Channapabasappa, R. Panduranga, D. Vijaya, ABH Infrastructures, and K. Sridhara. The legal challenge stemmed from four separate Enforcement Case Information Reports registered by the ED on July 22, 2025, concerning investigations into alleged illegal betting and gambling activities under the Prevention of Money Laundering Act.
Petitioners’ legal counsel argued that the underlying predicate offenses and criminal cases against them had already concluded, rendering the ongoing federal financial investigation legally untenable. They also challenged the statutory validity of notices issued by a single member of the Adjudicating Authority, pointing out that the body is legally mandated to comprise three members, including a qualified legal expert. Consequently, they requested the court to set aside the searches, property seizures, and the freezing of bank accounts.
In response, lawyers representing the ED defended the agency’s jurisdiction, maintaining that the PMLA functions as a self-contained code. The central agency argued that because the petitioners had already submitted formal responses and made appearances before the Adjudicating Authority, the writ petition was not maintainable at this stage.
The High Court’s decision allows the federal financial probe to proceed as investigators examine records and frozen assets tied to the case. The ruling marks a significant setback for the petitioners in their ongoing legal battle against the central financial watchdog.
