Karnataka High Court Refuses to Quash UAPA FIR in ₹92.55 Crore Foreign Funding Case

The Karnataka High Court has refused to quash an FIR registered against six individuals accused of receiving illegal foreign funding through international debit cards and allegedly diverting the funds to Left Wing Extremism (LWE)-affected regions. The Court observed that investigations involving allegations affecting national security should not ordinarily be halted at the initial stage.

Justice M. Nagaprasanna dismissed two criminal petitions challenging the FIR registered by the Kothanur Police, Bengaluru, under provisions of the Bharatiya Nyaya Sanhita (BNS) and the Unlawful Activities (Prevention) Act (UAPA). The petitioners had questioned both the Enforcement Directorate's (ED) communication that led to the FIR and the invocation of UAPA provisions.

According to the ED, investigations began after Micah Mark was intercepted at Bengaluru's Kempegowda International Airport carrying 24 foreign debit cards issued by a US bank. Further investigation allegedly uncovered a network linked to a US-based organisation through which approximately ₹92.55 crore was withdrawn in India between November 2025 and April 2026 in alleged violation of FEMA and FCRA provisions.

Rejecting the challenge, the High Court held that Section 66(2) of the Prevention of Money Laundering Act authorises the ED to share information with appropriate agencies where offences under other laws are suspected. The Court also found sufficient prima facie material to justify investigation under the UAPA.

Observing that "funding becomes the oxygen that enables extremist movements to survive and proliferate," the Court held that investigations concerning national security must proceed unhindered. It clarified that the accused remain free to pursue legal remedies after the investigation is completed.