Karnataka HC refused permission for WinZO to transfer funds from a US bank account amid ongoing PMLA proceedings, but allowed remittance to ED’s Indian account. Attachment order preserved pending final adjudication.
WinZO US Fund Transfer Denied Amid PMLA Attachment: Karnataka HC
The Karnataka High Court declined to allow WinZO, a fintech gaming platform, to transfer funds from its US-based bank account to India outside the scope of PMLA proceedings. However, the Court permitted the company to remit the amount directly into an account controlled by the Enforcement Directorate, ensuring fund preservation during investigation.
The Court upheld the provisional attachment order issued under PMLA Section 17, observing that uncontrolled transfer of offshore funds could frustrate recovery mechanisms. The decision reflects judicial support for maintaining the integrity of attached assets, particularly where cross-border elements complicate tracking and recovery.
Where there is reasonable apprehension of dissipation, the ED is entitled to secure funds even if held abroad,the Court noted, reinforcing the extraterritorial application of PMLA attachment where Indian nexus is established.
This case affirms that courts will balance corporate operational needs against risks of asset diversion in PMLA contexts. Legal advisors must ensure compliance with ED directives on fund repatriation and anticipate judicial scrutiny when seeking permissions for offshore fund movement during active investigations.
Citations
- Prevention of Money Laundering Act, 2002, Section 17
