The High Court of Karnataka, in a significant judgment, has dismissed four appeals filed by the Directorate of Enforcement (ED), upholding an order by the PMLA Appellate Tribunal that quashed the attachment of seven properties mortgaged to Syndicate Bank.

The Division Bench, comprising Justice DK Singh and Justice Venkatesh Naik T , ruled that properties mortgaged to a bank—which itself was a victim of fraud by its employees—could not be attached as ‘proceeds of crime’ under the Prevention of Money Laundering Act, 2002 (PMLA). The Court also highlighted a critical procedural lapse, noting that the Adjudicating Authority had confirmed the attachment without issuing any notice to the bank, which held a security interest in the properties.

The judgment, dated October 17, 2025, was del

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