Karnataka HC Stays ED Probe Against Gameskraft, Questions 'Updated ECIR' Practice

• The Karnataka High Court has stayed the ED's investigation against Gameskraft Technologies Pvt. Ltd. in a money laundering case based on an FIR that was already closed.
• Justice M. Nagaprasanna questioned the ED's practice of 'updating' an ECIR when its foundational predicate offense has ceased to exist.
• Gameskraft argued that once the predicate offense (Crime No. 722 of 2024) was closed and accepted by the court, the ED could not sustain a money laundering probe based on it.
• The ED claimed it could rely on other pending FIRs to sustain the ECIR, but the court expressed skepticism and asked for statutory or judicial precedent.
• The court recorded the ED's undertaking not to investigate further based on Crime No. 722 of 2024 and listed the matter for February 6 for further submissions.

Why It Matters: Karnataka HC questions ED's power to continue money laundering probes after predicate FIRs are closed.