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Enforcement Directorate Is Not a ‘Super Cop’, Says Karnataka High Court
The court said the agency must work within PMLA limits and cannot keep money-laundering cases alive after the underlying offence falls away.
The Karnataka High Court quashed the Enforcement Directorate's case against Congress Party MLA Nanjegowda, ruling the agency cannot act as a "super cop" with unrestricted authority to investigate any matter outside its statutory framework.
Rajanna's private complaint alleged the Malur Land Grant Committee, chaired by Nanjegowda, illegally allotted around 80 acres to 38 people, prompting the Enforcement Directorate to register its case in 2023 as a predicate offence.
Clarifying the statutory framework, the Court declared that powers under the Money Laundering Act are "derivative and not original," and proceedings cannot continue once the predicate offence no longer exists.
Rejecting the agency's attempt to file private complaints, the Court stated allowing such action "would amount to permitting the ED to act as a super cop" contrary to the Act's philosophy requiring a predicate offence.
The Court stressed that the Constitution envisages a separation of powers to prevent any one institution from becoming supreme, requiring checks and balances among government organs rather than allowing unrestricted investigative authority.
The Karnataka High Court also drew a red line for the ED, stating that the agency cannot act like a "super cop." The court clarified that the agency cannot investigate everything that comes to its attention.
The Karnataka High Court has given a very important verdict on the scope of powers of the Enforcement Directorate (ED). The ED is a ‘super agency’ to investigate every matter in the country.