Karnataka High Court Rejects ED's Bail Cancellation Plea Against Aishwarya Gowda, Accused in Gold Investment Scam

Case details

Case: - Directorate of Enforcement v. Mrs Aishwarya Gowda

Case No: - Criminal Petition No. 13915 of 2025

Bench: - Single Judge Bench of Justice S. Vishwajith Shetty

Petitioner’s Counsel- Smt. Anuparna Boradoloi

Respondent’s Counsel- Sri Sunil Kumar S

Introduction

The Karnataka High Court, in the matter of ED v. Aishwarya Gonda on 24th June, 2026, dismissed the petition filed by the Directorate of Enforcement seeking cancellation of bail granted to Mrs Aishwarya Gowda, who was accused in the money laundering case against the Trial Court order.

Background of the case

The Enforcement Directorate registered a case against Mrs Gowda and others. The allegation stated that she claimed to be a prominent businesswoman and sister of one of the members of the Parliament, and then approached individuals to invest their money in her investment business, which would give them high returns, after which she collected money and gold from them. Later, she did not pay them back and scammed them out of money. Many criminal cases were registered against her under Sections 384 and 420 of IPC at the Bengaluru Police Station and also in Mandya.

During the investigation, the ED found that Rs. 2.835 crores were received through bank transfers, and Rs. 4.79 crores were received in cash along with the gold. She was arrested on 24 April under Section 2(1)(u), 3 and 4 of the Prevention of Money Laundering Act, 2002. The investigation procedure was eventually completed with 6,700 pages of the charge sheet, including 39 witnesses and was filed before the Trial Court.

Following the arrest, Mrs Aishwarya Gowda applied for regular bail before the Court of the Principal City Civil and Sessions Judge, Bengaluru, which was functioning as the Special Court under the PMLA. The special court granted her bail application in the case ECIR/BGZO/06/2025 on 17 June 2025.

Then, ED have further appealed to the Karnataka High Court and filed a Criminal Petition No. 13915 of 2025 under Section 483(3) of The Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS) seeking cancellation of the bail of the respondent, stating that the bail has been granted because of the provisions mentioned in Section 45 of PMLA.

Legal Provisions

Section 45 of PMLA

Sections 483(3) of BNSS

384 AND 420 IPC

Section 2(1)(u), 3 and 4

Order

The Criminal Petition No. 13195 of 2025 filed by ED was dismissed. The bail granted to Mrs Aishwarya Gowda by the Court of the Principal City Civil and Sessions Judge, Bengaluru, on 17 June 2025, in ECIR/BGZO/06/2025 for offences under Sections 3 and 4 of the Prevention of Money Laundering Act, 2002, was a reasoned order and finds no reason for cancellation of bail of the respondent.

Conclusion

The Karnataka High Court’s Judge Justice Vishwajith Shetty examined the three Supreme Court cases to determine the first proviso of Section 45 of PMLA, namely Saumya Chaurasia, Kalvakuntla Kavitha and Shashi Bala, which were considered before giving the ruling in this case. He observed that the facts of the present case align with those of the Shashi Bala case the charge sheet runs to more than 6,700 pages, 39 witnesses have been cited, the trial has not commenced, and a conclusion in the near future is remote. That he also mentioned that the Trial Court have taken several conditions into account has applied its mind and  not based its order on a gender exception before granting the bail. The Trial Court’s order was examined whether the order was legally affirmed or not. The further proceedings did not require the presence of the respondent in their investigation and the respondent was in custody for nearly two months at that time the bail was granted.

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