The existence of a scheduled (predicate) offence is a foundational requirement for initiation of proceedings under the money-laundering legislation. Once a predicate offence is established, investigative authorities can form a 'reason to believe' for an individual's arrest if material suggests involvement in money laundering and proceeds of crime.

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA READ WITH SECTION 528 OF THE B.N.S.S., PRAYING TO DECLARE THAT THE ARREST OF THE ACCUSED NO.1 PURSUANT TO THE ISSUANCE OF THE GROUNDS OF ARREST (ANNEXURE-G) MADE ON 23.08.2025 ARISING OUT OF ECIR/BGZO/19/2025 REGISTERED BY THE RESPONDENT HEREIN FROM GANGTOK, SIKKIM AS BEING WITHOUT JURISDICTION, ILLEGAL, ARBITRARY, VIOLATIVE OF THE ACCUSED NO.1's FUNDAMENTAL RIGHTS GUARANTEED UNDER ARTICLES 19 AND 21 OF THE CONSTITUTION OF INDIA, ETC.

THIS WRIT PETITION HAVING BEEN HEARD AND RESERVED FOR ORDERS ON 13.10.2025 AND COMING ON FOR PRONOUNCEMENT OF ORDERS THIS DAY, THE COURT PRONOUNCED THE FOLLOWING:

CORAM: HON'BLE MR. JUSTICE M.I.ARUN

CAV ORDER

1. The husband of the petitioner has been arrested pursuant to registration of Enforcement Case Information Report (ECIR) under the provisions of the Prevention of Money-Laundering Act, 2002 (hereinafter referred to as ‘the PMLA, 2002’).

2. The writ petition has been filed with the following prayers:

"a) Call for the entire records pertaining to ECIR/BGZO/19/2025 registered by the Respondent herein before this Hon'ble Court; and

b) Declare that the arrest of the Accused No.1 pursuant to the issuance of the Grounds of Arrest (Annexure-G) made on 23.08.2025 arising out of ECIR/BGZO/19/2025 registered by the Respondent herein from Gangtok, Sikkim as being without jurisdiction, illegal, arbitrary, violative of the Accused No.1's fundamental rights guaranteed under Article 19 and 21 of the Constitution of India.

c) Consequently, direct the release of the Accused No.1, arrested pursuant to the issuance of the Grounds of Arrest (Annexure-G) made on 23.08.2025 arising out of ECIR/BGZO/19/2025 carried out by the Respondent in connection with E.C.I.R/BGZO/19/2025 registered by the Respondent herein in the interest of justice."

3. The grounds of arrest to arrest Mr. K.C. Veerendra (husband of the petitioner) under Section 19 of the PMLA, 2002 reads as under:

"Ground of Arrest to arrest Mr. K C Veerendra under section 19 of PMLA, 2002 (ECIR/BGZO/19/2025)

1. You, Mr. K C Veerendra, the main accused in FIR No. 0064/2011 dated 24.10.2022 registered at Challekere Police Station under Sections 420 of IPC 1860, 66 of Information Technology Act, 2000, 79 and 80 of Karnataka Police Act, 1963 , and FIR No. 215/2022 dated 24.10.2022 registered at Davenagere Extension Police Station under sections 34, 420, 506 of IPC 1860, 78 of Karnataka Police Act, 1963 .

2. That in the aforesaid FIRs, the gist of the allegations are as follows:

2.1. FIR No. 0064/2011 dated 02.03.2011 registered at Challakere Police Station, Chitradurga District, Acts invoked: Information Technology Act 2000 u/s [66], IPC 1860 u/s [420], Karnataka Police Act, 1963 u/s [79], [80]

Accused:

• Ramesha

• Vikki @ Mobile Shop Vikki

• KC Veerendra @ Pappi S/o Late k Channabasappa

• KB Nagaraja S/o Kenganna

FIR Contents: As per the FIR No. 0064/2011 dated 02.03.2011 registered at Challakere Police Station, Chitradurga District, on 02.03.2011 at 05.15 pm, at the residence of one of the accused K.C. Veerendra in Veerabhadraswamy Layout, Challakere Town, Veerendra along with the other accused Nagaraja was watching the live broadcast of the World Cup Cricket match between England and Ireland on TV and were talking to bettors and customers through mobile phones. The accused persons were alleged to have been deceiving people by bet