PMLA Charge Must Match Predicate Offence Conviction; Section 216 CrPC Plea Allowed: Karnataka HC

By CA Sandeep Kanoi Corporate Law Judiciary July 18, 2026

TaxGuru Citation: 2026 taxguru.in 8877
Case Name: M. Ramachandra Vs Directorate of Enforcement (Karnataka High Court)
Appeal Number: Only available for paid members
Date of Judgement/Order: Only available for paid members
Courts: All High Courts, Karnataka High Court

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M. Ramachandra Vs Directorate of Enforcement (Karnataka High Court)

Material Facts

The petitioners challenged an order dated 27.02.2025 by which the Special Court rejected their application under Section 216 of the Code of Criminal Procedure, 1973 seeking alteration of the charge in proceedings under the Prevention of Money Laundering Act, 2002 (PMLA).

The petitioners had earlier been prosecuted in Crime No.16/2009 for offences under Sections 13(1)(e) read with Section 13(2) of the Prevention of Corruption Act. Following investigation, a charge sheet was filed. Separately, the Enforcement Directorate registered an Enforcement Case Information Report and filed a complaint, leading to registration of Spl.C.C. No.357/2016 for offences under Sections 3 and 4 of the PMLA.

Subsequently, by judgment dated 08.11.2024, the petitioners were convicted in the predicate offence. The conviction recorded that the disproportionate assets which the petitioner failed to satisfactorily explain were restricted to ₹42,48,188.50. The petitioners thereafter sought alteration of the PMLA charge so as to restrict it to that amount. The Special Court rejected the application, leading to the present writ petition.

Procedural History

Crime No.16/2009 was registered under Sections 13(1)(e) and 13(2) of the Prevention of Corruption Act.
The Enforcement Directorate initiated proceedings under the PMLA, resulting in Spl.C.C. No.357/2016.
On 08.11.2024, the petitioners were convicted in the predicate offence, with disproportionate assets quantified at ₹42,48,188.50.
The petitioners filed an application under Section 216 CrPC before the Special Court seeking alteration of the PMLA charge.
The Special Court rejected the application on 27.02.2025.
The rejection order was challenged before the Karnataka High Court.

Legal Issue(s)

Whether the application under Section 216 of the Code of Criminal Procedure seeking alteration of the charge in the PMLA proceedings ought to have been allowed following the conviction in the predicate offence.
Whether the charge in Spl.C.C. No.357/2016 should be restricted to the amount of disproportionate assets determined in the predicate offence.

Relevant Statutory Provisions