In a significant development for India’s startup ecosystem, the Karnataka High Court has issued a stern warning to the Enforcement Directorate (ED) while granting relief to a cofounder of gaming platform WinZO. The court cautioned the federal agency against filing what it termed “frivolous appeals,” signaling judicial concern over the misuse of investigative powers in corporate cases.
Background of the Case
The case revolves around allegations investigated by the ED concerning potential violations under India’s financial regulations, including provisions of the Prevention of Money Laundering Act (PMLA). The agency had challenged an earlier relief granted to the WinZO cofounder, seeking to
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