In a significant development under the newly enacted Bharatiya Nagarik Suraksha Sanhita (BNSS), a special Prevention of Money Laundering Act court in Indore has ruled that the Madhya Pradesh Government’s failure to decide a prosecution sanction request within 120 days amounts to deemed approval. The ruling by Special Judge Rajendra Kumar Patidar effectively grants the Enforcement Directorate (ED) the green light to proceed with prosecution against a second-class gazetted government officer and her husband in a money laundering case.

The ED had sought sanction to prosecute the accused for allegedly practicing medicine privately while in government service and using the proceeds to acquire properties. The request was sent by speed post on January 30, 2025, with a reminder on November 10, 2025, but the state government did not communicate any decision within the prescribed period under Section 218(1) of BNSS, which replaced the old Code of Criminal Procedure provision.

120-Day Deadline and Deemed Sanction

The ED’s counsel argued that since the accused’s private practice did not form part of her official duties, no sanction was required under the Prevention of Corruption Act . However, the court focused on the procedural aspect — the state’s failure to respond within 120 days. Citing the BNSS provision, the court held that "if the State Government fails to decide a prosecution-sanction request within 120 days of receipt, the sanction may be deemed granted under Section 218(1) BNSS." The ED also relied on the Jharkhand High Court ’s ruling in Hemant Soren v. State and the Rajasthan High Court’s judgment in Vedprakash Yadav v. ED .

Presumption of Delivery Under General Clauses Act

The court noted that the ED’s speed post was not returned undelivered, raising a presumption under Section 27 of the General Clauses Act that the letter reached the state government. "The court raised the presumption that the letter reached the State Government under Section 27 of the General Clauses Act ," the order recorded. Therefore, the court allowed the ED’s application for deemed sanction . The defence counsel had argued that the ED could file a complaint only after obtaining sanction, but the court’s ruling overcomes that hurdle.

Case Listed for November 2026

The court granted time to the defence to argue on cognizance and listed the matter for November 4, 2026. The case is being prosecuted by Special Public Prosecutor Rajat Raguuwanshi with Law Assistant Shan Ali Khan, while the accused are represented by Advocates Abhishek Rawal and Kirti Wankar.

This ruling is among the first to interpret the deemed sanction provision in the BNSS, which came into effect in July 2024. It underscores the importance of timely decision-making by sanctioning authorities in corruption and money laundering cases. Legal experts note that the provision aims to prevent delays in prosecution and ensure accountability. The matter will now proceed to a cognizance hearing, where the court will determine whether to take cognizance of the complaint.