WinZO moves HC to shift Indian authority probe to Delhi
Amid the ongoing legal battle over the WinZO money-laundering probe, co-founder Saumya Rathore has approached the Karnataka High Court in southern India, challenging the Enforcement Directorate’s decision to initiate a money-laundering investigation from Bengaluru and requesting that the probe and related legal proceedings be transferred to New Delhi, where the company’s core operations are based. The High Court has asked the ED to maintain the status quo until the next hearing on 14 January.
HC orders ED to pause action
The matter was heard by a bench led by Justice M Nagaprasanna. After listening to preliminary arguments from both sides, the Court scheduled the next hearing for 14 January. Until then, the bench directed the ED to not precipitate the matter. This effectively means the agency should not take any action that could lead to a sudden or irreversible development without further consideration by the Court.
Argument for Delhi as the correct jurisdiction
Appearing for Rathore, senior advocate Sajan Poovayya argued that the ED should conduct its investigation from Delhi. He submitted that WinZO’s business operations, bank accounts and employees are all located in the national capital. According to him, all key actions related to the case have taken place in New Delhi.
Poovayya pointed out that 14 bank accounts linked to the case have been frozen and all of them are in Delhi. He questioned why the ED chose to proceed from Bengaluru when it has an office in Delhi. He argued that the choice of jurisdiction cannot rest solely with the investigating agency and must be based on territorial connection.
The counsel also stated that even if the ED continues its probe through its Bengaluru zonal office, any court proceedings arising from the investigation should be heard in Delhi.
ED defends its authority
Representing the Enforcement Directorate, advocate Madhu N Rao raised questions over the maintainability of Rathore’s plea. He urged the Court not to grant relief, stating that the investigation is at a crucial stage.
Rao informed the bench that assets worth around Rs. 800 crore ($99 million) have already been attached in the matter. He maintained that the ED is a pan-India agency and is fully empowered to investigate cases across the country. According to him, the agency’s actions fall within its statutory powers.
In response, Poovayya clarified that Rathore is not challenging the ED’s authority to investigate. He said the issue is limited to the location from which the probe is being conducted. He argued that no part of the alleged offence took place in Bengaluru, except for the issuance of summons and arrests by the ED.
Arrests and bail issues raised
During the hearing, Rathore’s counsel also referred to the arrest of WinZO co-founder Paavan Nanda. While Rathore has been granted bail, Nanda remains in judicial custody following a remand order passed by a Bengaluru court.
Poovayya argued that the Bengaluru court lacked territorial jurisdiction and that the matter should have been placed before a Delhi court. When the judge observed that this appeared to be an indirect attempt to seek bail for Nanda, Poovayya stated that he would pursue that relief before the appropriate trial court.
FIRs and ECIR under scrutiny
At the centre of Rathore’s petition is the Enforcement Case Information Report (ECIR) filed by the ED. The plea states that the ECIR is based on four FIRs. Of these, the FIR registered in Bengaluru has been stayed, while another FIR from Rajasthan has been closed. The remaining two FIRs were registered in Delhi and Rajasthan.
The petition claims that none of these FIRs disclose any proceeds of crime or elements of money laundering. It further states that a fifth FIR was registered in Gurugram after the ECIR was filed. Rathore has alleged that this FIR was lodged based on assumptions and lacks a factual basis.
The plea also contends that Bengaluru courts do not have jurisdiction to try cases arising from the ED’s ECIR. The High Court will take up the matter again on 14 January.
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