Bengaluru: A search operation undertaken under Prevention of Money-Laundering Act is a continuation of investigative process to secure proceeds of crime in money-laundering cases, Karnataka high court has ruled, upholding the contention of online gaming companies.Observing that two petitions filed by Gameskraft Technologies and Rummytime Technologies are maintainable, Justice M Nagaprasanna pointed out that Enforcement Case Information Report (ECIR), though contended to be an ‘internal administrative document’, authorises search, seizure, attachment of property, arrest under one of the most stringent penal statutes.The twin petitions had challenged registration of ECIR by Directorate of Enforcement and seizure proceedings under PMLA.ED had argued the search operation was civil in nature. The court said ED’s argument that ECIR is merely administrative and yet unleash criminal law, is to embrace a contradiction. The search, seizure, freezing and retention of property are not isolated civil actions divorced from criminal proceedings, it added.PMLA is not designed merely to regulate property. It is enacted to identify, trace, preserve and ultimately confiscate proceeds of crime generated from criminal activity, the court said, adding ED’s jurisdiction is inextricably intertwined with criminality.Hence, it ruled that petitions invoking Article 226 of Constitution along with Section 482 of CrPC is perfectly maintainable.
