Sat Feb 21 16:17:46 UTC 2026: ### High Court Halts Coercive Action Against Grandson in Money Laundering Case Linked to Deceased Grandmother

The Story:

The Karnataka High Court has issued an interim order preventing the Enforcement Directorate (ED) from taking coercive action against Anirudh Gupta, who is under investigation for money laundering charges linked to his deceased grandmother. Gupta sought to quash the proceedings and summons issued against him by the ED last month. The case originates from allegations that Gupta’s grandmother, Sarwan Kumari, who passed away in 2017, fraudulently obtained compensation from the Karnataka Industrial Areas Development Board (KIADB).

The court’s decision follows arguments presented by both sides regarding the implications of the sole accused’s death on the money laundering case. While the ED contends that the proceeds of the alleged crime should still be investigated, Gupta’s counsel argues that the crime itself is extinguished upon the death of the accused. The court has scheduled a further hearing for March 3 to examine whether money laundering proceedings can continue against relatives when the case against the sole accused has abated.

Key Points:

  • The Karnataka High Court directed the ED not to take coercive action against Anirudh Gupta in a money laundering case.
  • The case is linked to allegations against Gupta’s deceased grandmother, Sarwan Kumari, who allegedly secured Rs 16 crore from KIADB through fraudulent documents.
  • Kumari died in 2017, and the ED initiated proceedings against Gupta and his parents in 2023.
  • The court will examine whether money laundering proceedings can continue against relatives when the case against the sole accused has abated.
  • The next hearing is scheduled for March 3.

Key Takeaways:

  • The case raises important legal questions about the applicability of money laundering laws when the primary accused is deceased.
  • The High Court’s decision highlights the tension between the ED’s mandate to investigate proceeds of crime and fundamental principles of criminal law regarding presumption of innocence and abatement of charges upon death.
  • The outcome of the case could have significant implications for how money laundering investigations are conducted in similar situations.

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