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Karnataka HC Dismisses Plea in Rs 92.55 Cr Foreign Funding Case Under UAPA Using US Debit Cards

Target:UPSC GS-IIIMPSCSSC GATeachingPrelims HighMains HighStatic GK Link
02 Jul 2026
~2 min
Source: Indian Express
Key Data:Rs 92.55 crore$9.9 millionNov 2025 to Apr 2026Section 66(2) PMLAUAPAFEMA
Bodies:Karnataka High CourtEnforcement Directorate (ED)Bengaluru PoliceThe Timothy Initiative (TTI)
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What This Article Covers

1.High Court refused to cancel FIR registered under UAPA, FEMA, and FCRA for illegal foreign funding of Rs 92.55 crore.

2.Funds were channeled through US debit cards in Karnataka, Chhattisgarh, and Assam; Rs 6.34 crore allegedly reached Maoist-affected regions.

3.Court ruled that prima facie material exists; ED can share investigation findings under Section 66(2) PMLA with police.

The Big Picture
Prelims · HighMains · High

Karnataka High Court dismissed pleas to quash an FIR under UAPA for allegedly routing Rs 92.55 crore in illegal foreign funds via US debit cards, partly to Maoist areas. The ruling upholds ED's power to share information under PMLA Section 66(2) and reinforces judicial restraint in national security investigations.

Exam Lens

Quick Exam Facts From News

Illegal Funds RoutedRs 92.55 crore ($9.9 million)
Time PeriodNovember 2025 to April 2026
Key Legal ProvisionSection 66(2) PMLA; UAPA; FEMA; FCRA
Agencies InvolvedEnforcement Directorate (ED), Bengaluru Police
Maoist LinkRs 6.34 crore sent to Dhamtari, Chhattisgarh

1-Minute Revision

  • ›Illegal Funds Routed: Rs 92.55 crore ($9.9 million)
  • ›Time Period: November 2025 to April 2026
  • ›Target this Data: Rs 92.55 crore ($9.9 million) illegally routed via US debit cards between Nov 2025 and Apr 2026.
  • ›Target this Nodal Body: Enforcement Directorate (ED) filed complaint under PMLA; Bengaluru Police registered FIR.
  • ›Target this Legal Point: Section 66(2) of Prevention of Money Laundering Act (PMLA) permits information sharing.

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Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

Which High Court delivered the judgment dismissing petitions under the Unlawful Activities (Prevention) Act in the case of illegal foreign funding through US debit cards?

Q2Statement-basedHard

Consider the following statements regarding the Karnataka High Court case on illegal foreign funding:

1. The court ruled that the Enforcement Directorate (ED) cannot share information with police under Section 66(2) of PMLA.

2. The alleged illegal funds of Rs 92.55 crore were routed using US debit cards in Karnataka, Chhattisgarh, and Assam.

3. A portion of the funds was claimed to have reached Maoist-affected areas.

Which of the statements given above is/are correct?

Q3Data-centricMedium

What was the total amount of foreign funds allegedly routed illegally according to the Enforcement Directorate's complaint in this case?

Q4Application/ImpactMedium

What is the primary legal objective served by Section 66(2) of the Prevention of Money Laundering Act (PMLA) as interpreted by the court in this case?

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