Karnataka HC Extends Interim Relief to WinZO Co-founder, Directs Cooperation with ED

• Karnataka High Court extended interim protection to WinZO co-founder Saumya Rathore against coercive action by the ED in a money-laundering probe.
• The court directed Rathore to continue cooperating with the ED investigation, posting the case for final hearing on January 23, 2026.
• Rathore has challenged ED's jurisdiction and sought quashing of the ECIR, arguing the probe lacks territorial jurisdiction and the predicate offense involves a small TDS amount.
• The ED stated the PAN misuse cited is 'only the tip of the iceberg,' indicating a broader investigation beyond the initial tax deduction issue.
• The ED alleges WinZO engaged in unfair practices, restricted customer withdrawals, and diverted funds abroad, freezing over ₹505 crore in assets.

Why It Matters: WinZO co-founder gets interim relief but must cooperate with ED's 'tip of the iceberg' money-laundering probe.