- 1 - HC-KAR NC: 2026:KHC:22937 WP No. 12930 of 2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 25TH DAY OF APRIL, 2026 BEFORE THE HON'BLE MR. JUSTICE M.NAGAPRASANNA WRIT PETITION NO. 12930 OF 2026 (GM-RES) BETWEEN: 1. M/S. SRI SRINIVASA MINERAL TRADING COMPANY PARTNERSHIP FIRM CONSTITUTED UNDER INDIAN PARTNERSHIP ACT, 1932 REP. BY ITS MANAGING PARTNER SRI Y. SRINIVASA RAO OFFICE AT 5/45, YALAMANCHILI COMPLEX STATION ROAD, HOSPET DISTRICT VIJAYANAGARA KARNATAKA – 583 201. 2. SRI Y.SRINIVASA RAO S/O UMA MAHESHWARA RAO AGED ABOUT 57 YEARS R/AT-PLOT NO.35, SY. NO.243A/1 31ST WARD, SANDUR ROAD VIVEKANANDA NAGAR HOSPET, VIJAYANAGARA DISTRICT KARNATAKA – 583 201. …PETITIONERS (BY SRI SHIVAPRASAD SHANTANAGOUDAR, ADVOCATE) AND: 1. DEPUTY DIRECTOR DIRECTORATE OF ENFORCEMENT Digitally signed by PADMAVATHI B K Location: High Court of Karnataka - 2 - HC-KAR NC: 2026:KHC:22937 WP No. 12930 of 2026 GOVERNMENT OF INDIA BANGALORE ZONAL OFFICE 3RD FLOOR, 'B' BLOCK BMTC-TTMC BUILDING K.H. ROAD, SHANTHINAGAR BENGALURU – 560 027. 2. ASSISTANT DIRECTOR DIRECTORATE OF ENFORCEMENT GOVERNMENT OF INDIA BENGALURU ZONAL OFFICE 3RD FLOOR, 'B' BLOCK BMTC-TTMC BUILDING K.H. ROAD, SHANTHINAGAR BENGALURU – 560 027. 3. ADJUDICATING AUTHORITY UNDER THE PREVENTION OF MONEY LAUNDERING ACT, 2002 REP. BY ITS REGISTRAR ROOM NO.26, 4TH FLOOR JEEVAN DEEP BUILDING PARLIAMENT STREET NEW DELHI – 110 001. …RESPONDENTS (BY SRI ARVIND KAMATH, ASGI A/W., SMT. ANUPARNA BORDOLOI, CGC) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA READ WITH SECTION 528 OF BNSS, PRAYING TO ISSUE A WRIT OF CERTIORARI OR ANY OTHER APPROPRIATE WRIT, ORDER OR DIRECTION, AND THEREBY ECIR/BGZO/17/2016 DATED 19.12.2016 ANNEXURE - 3 - HC-KAR NC: 2026:KHC:22937 WP No. 12930 of 2026 G REGISTERED BY RESPONDENT NO. 1 INSOFAR AS THE PETITIONERS ARE CONCERNED. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE M.NAGAPRASANNA ORAL ORDER The petitioners are before the Court seeking the following prayers: "i. Stay the further proceedings arising out of the impugned ECIR/BGZO/17/2016 dated 19.12.2016 registered by Respondent No.1, including the operation and execution of the Order dated 30.03.2026 passed by Respondent No.3 in OA.No.343/2025 (Annexure-G), insofar as the Petitioners are concerned; and ii. Direct Respondents No.1 to 3 to intimate the respective banks to defreeze the bank accounts of the Petitioners as detailed in paragraph 9 above, upon the petitioners furnishing a Fixed Deposit Receipt for an amount equivalent to the total balance lying in the frozen bank accounts i.e.,, Rs.95,26,882/-, pending disposal of the Writ Petition." 2. Heard Sri. Shivaprasad Shantnagoudar, learned counsel appearing for the petitioners and Sri. Arvind Kamath, learned Additional Solicitor General along with Smt. Anuparna - 4 - HC-KAR NC: 2026:KHC:22937 WP No. 12930 of 2026 Bordoloi, Central Government Advocate appearing for the respondents. 3. Sri. Shivaprasad Shantnagoudar, learned counsel appearing for the petitioners would restrict his prayer to prayer No.2 as is quoted hereinabove. 4. The petitioners are a partnership firm. The activities of the petitioners or the proceedings that has led to the impugned proceedings need not be gone into on the sole score that the petitioners are restricting their prayer to prayer No.2, as noted herein above. 5. Sri. Arvind Kamath, learned Additional Solicitor General, has no objection to consider prayer No.2, as the alleged proceeds of crime that is in the bank account would however be secured. 6. The account of the petitioners comes to be frozen under Section 17(1-A) of the Prevention of Money Laundering Act, 2002. A search was conducted on 17.10.2025, after the freezement of the account of the petitioners. The search did not yield any results, but the account remains to be frozen and in - 5 - HC-KAR NC: 2026:KHC:22937 WP No. 12930 of 2026 the light of the pending proceedings, an amount of Rs.95,26,882/- that is lying in the account is in its entirety frozen. 7. The learned counsel appearing for the petitioners has in the aforesaid prayer seeks a direction for furnishing of fixed deposits of the same amount i.e., Rs.95,26,882/- instead of it being kept frozen in lieu of permission to operate the account. 8. As observed, the Additional Solicitor General has no objection to the same. In that light, the account of the petitioners that has now been frozen on the direction of the Enforcement Directorate shall be defrozen within two weeks from the date of receipt of the copy of the order. In lieu of normal operation of the account, the petitioners shall furnish fixed deposit/receipts of fixed deposit to the tune of Rs.95,26,882/-. The account in terms of what is aforesaid shall be defrozen within two weeks from the date of receipt of the copy of the order. - 6 - HC-KAR NC: 2026:KHC:22937 WP No. 12930 of 2026 9. With the aforesaid observation, the petition stands disposed. Ordered accordingly. Sd/- (M.NAGAPRASANNA) JUDGE JY List No.: 2 Sl No.: 207