In a significant breather for Bihar-based contractor Rishu Shree, the Supreme Court on Friday stayed his arrest by the Enforcement Directorate (ED) in a money laundering case. The interim protection will remain in force till November 10, allowing him time to approach the Patna High Court for appropriate relief.
A bench comprising Justice Surya Kant and Justice Joymalya Bagchi passed the order while hearing Shree’s writ petition filed under Article 32 of the Constitution.
Background
The case against Rishu Shree traces back to allegations that his firms, which reportedly work as contractors or subcontractors in several Bihar government departments - including Water Resources, Public Health Engineering, Urban Development, and Rural Works - were allegedly involved in securing tenders through irregular means.
The Enforcement Directorate claims that Shree maintained a “nexus” with certain government officials to manipulate tender processes for illicit personal gains. In June 2025, ED teams carried out search operations at nine locations linked to him in Bihar and claimed to have seized “incriminating documents” suggesting financial irregularities.
Shree, however, contends that the allegations are politically motivated and that the ED has been “overstepping its jurisdiction” without proper grounds for arrest.
Court’s Observations
At the outset, Senior Advocate Mukul Rohatgi, appearing for Shree, told the court that the writ petition was moved because “certain provisions of the PMLA itself have been challenged,” and the ED’s actions were causing undue harassment.
Justice Surya Kant, however, remarked that the proper forum for such relief would be the High Court. “We are not inclined to entertain this writ at this stage,” the bench observed, adding that the petitioner is free to seek protection before the Patna High Court.
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The bench also noted the importance of ensuring that investigative agencies do not misuse their powers but stopped short of commenting on the merits of the allegations.
“The bench observed, ‘The petitioner may avail the remedy before the appropriate forum. Meanwhile, we deem it appropriate to protect him from coercive action for a limited period,’” said a lawyer present during the hearing.
Decision
Concluding the brief hearing, the Supreme Court granted interim protection to Rishu Shree, directing that no coercive steps, including arrest, be taken by the ED till November 10. The order effectively gives Shree three weeks to move the Patna High Court for further relief.
The matter highlights once again the growing tension between individuals facing ED scrutiny and the courts’ oversight on the agency’s expanding reach under the Prevention of Money Laundering Act (PMLA). For now, Rishu Shree remains shielded - but only temporarily - as the larger legal battle continues to unfold in Bihar.
Case Title: Rishu Shree vs Union of India
Case No.: W.P.(Crl.) No. 411/2025
