Karnataka HC Questions ED's ECIR in Gameskraft Case After Predicate FIR Closure

• Karnataka High Court questioned ED's authority to continue PMLA proceedings against Gameskraft after the predicate FIR was closed.
• The core issue is whether ED can proceed when the alleged predicate offense, generating 'proceeds of crime,' has been closed by a competent court.
• ED cited Supreme Court's Vijay Madanlal Choudhary ruling, arguing money laundering is broad and 'proceeds of crime' are central.
• Gameskraft argued that once the predicate offense is closed, the foundation for PMLA proceedings disappears, especially if ECIR was registered after closure.
• The court also questioned ED's territorial jurisdiction when a new FIR surfaced in Lucknow, and the interplay between civil attachment and criminal prosecution.