Karnataka HC Upholds UAPA FIR Against Cross-Border Funding Network

Karnataka High Court Refuses to Quash UAPA FIR in Funding Case

The Karnataka High Court has upheld an FIR filed under the Unlawful Activities (Prevention) Act (UAPA) against an alleged cross-border debit card funding network. The court affirmed that the Enforcement Directorate (ED) exercised its statutory powers under Section 66(2) of the Prevention of Money Laundering Act (PMLA) to alert local police about the FIR's registration.

This ruling is significant as it expands the enforcement action channels available to authorities in cases that may intersect with money laundering and terrorism financing, establishing precedents for inter-agency communication and collaboration.

Practitioners should note the importance of this ruling in cases involving money laundering and terrorism financing, as it delineates the powers of the ED while also highlighting the interlinkage between financial regulations and criminal law.