The Kerala High Court has upheld an order transferring a Prevention of Corruption Act case to a Special Court hearing a connected money laundering case, holding that a Special Court constituted under the Prevention of Money Laundering Act (PMLA) has the legal authority to try the scheduled offence once it is committed under Section 44 of the Act.
Justice A. Badharudeen dismissed a petition filed by the Central Bureau of Investigation (CBI), which had challenged the transfer of the corruption case from the CBI Special Court in Ernakulam to the PMLA Special Court in Kozhikode.
Background of the Case
The CBI had approached the High Court under Article 227 of the Constitution seeking to set aside an order dated July 28, 2025, by the Special Judge (SPE/CBI)-II, Ernakulam. The agency argued that the Prevention of Corruption Act case should continue before the notified CBI Special Court instead of being tried alongside a connected money laundering case pending before the PMLA Special Court in Kozhikode.
The Directorate of Enforcement also supported the CBI's stand before the High Court, contending that the transfer order was an incorrect exercise of jurisdiction. However, one of the respondents opposed the plea, relying on provisions of the PMLA and earlier High Court rulings to argue that the Special Court under the PMLA was legally competent to hear both matters together.
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Court's Observations
The High Court examined Sections 44(1)(a), 44(1)(c), and 71 of the Prevention of Money Laundering Act, 2002. It noted that Section 44(1)(c) specifically provides for the transfer of a scheduled offence to the Special Court that has taken cognizance of the money laundering complaint.
Referring to previous decisions of the Delhi High Court and the Kerala High Court, the bench found that the statutory framework permits a PMLA Special Court to continue the trial of the scheduled offence after such transfer, even if it is not otherwise the notified court for that offence.
Addressing the jurisdictional issue, the Court observed,
"A Special Court constituted under the PML Act, on committal of a case under Section 44(1)(c) of PML Act, is legally competent and having jurisdiction to try the scheduled offence/offences."
The Court also noted that Section 71 of the PMLA gives the Act overriding effect in case of inconsistency with other laws, reinforcing the legislative intent behind a joint trial in appropriate cases.
Decision
Finding no legal error in the transfer order, the Kerala High Court dismissed the CBI's petition and upheld the decision to continue the proceedings before the PMLA Special Court in Kozhikode.
The Court further directed the Registry to immediately forward a copy of the judgment to the Special Court at Kozhikode so that the trial could proceed.
Case Details
Case Title: Central Bureau of Investigation v. The Assistant Director & Others
Case Number: OP (Crl.) No. 111 of 2026
Judge: Justice A. Badharudeen
Decision Date: July 1, 2026
