The Karnataka High Court warned the ED of Rs 1 lakh costs if its challenge to Paavan Nanda’s bail proves unnecessary. The court directed proof of bail violation or concealment, stressing frivolous litigation would attract financial penalties.
The Karnataka High Court cautioned the Enforcement Directorate (ED) that it could face a Rs 1 lakh cost if the agency’s challenge to bail granted for Winzo co-founder Paavan Nanda turns out to be “unnecessary.”
Justice S Rachaiah instructed ED counsel to demonstrate either a breach of bail conditions or Nanda’s deliberate efforts to hide case facts.
ALSO READ: WinZO Co-Founders Arrested: ED Gets 10-Day Custody in Massive Money Laundering Probe
The judge warned,
“Without these two, if I find this is as an unnecessary challenge I will impose Rs 1 lakh cost,”
The matter is set for next hearing on April 23.
Earlier this February, a Bengaluru sessions court approved bail for Nanda in the ED’s money-laundering probe against him. The ED’s investigation links to underlying crimes detailed in FIRs from Bengaluru, Rajasthan, and Delhi.
It accuses Winzo’s gaming platform of using algorithmic tweaks and bots to generate unlawful profits of Rs 177 crore, along with routing funds to foreign subsidiaries and laundering crime proceeds via AWS-hosted cloud services.
The agency also alleged misuse of numerous user identities and cross-border transfers totaling about USD 55 million.
Nanda rejected all claims, highlighted his complete cooperation in the probe, and contested the validity of the ED’s search and seizure actions.
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