The Supreme Court has stayed the proceedings before the Special Court (Srinagar) under the Prevention of Money Laundering Act, 2002 (PMLA) against Tariq Ahmad Ganaie, after the petitioner raised the lack of prior sanction as required under Section 197 of the Code of Criminal Procedure, 1973 (CrPC, now Section 218 of the Bharatiya Nagarik Suraksha Sanhita, 2023). The provision mandates prior sanction to prosecute a public servant.

A bench of Justice MM Sundresh and Justice Prasanna B Varale passed the orders.

The petitioner is a public servant against whom an FIR was registered by the Anti-Corruption Bureau under Sections 5(1)(d), 5(1)(e), and 5(2) of the J&K Prevention of Corruption Act, 2006 (which correspond to Sections 13(1), 13(1)(e), and 13(2) of the Prevention of Corruption Act, 1988). The offences under these provisions fall under the purview of the PMLA, and were investigated by the Enforcement Directorate (ED).

Evidence was placed on record before the Special Court, Srinagar, which passed orders taking cognisance offences under Sections 3 and 4 of the PMLA, despite the absence of the mandatory sanction. Therefore, a petition was filed before the Jammu & Kashmir and Ladakh High Court, seeking quashing of the Special Court's orders. The High Court, however, dismissed the plea, holding that the issue could be settled by reconsideration by the Trial Court in exercise of its powers under Section 403 BNSS.

Aggrieved by the High Court's order, an SLP was filed before the Supreme Court.

The Supreme Court has ordered to stay the proceedings against the petitioner. “There shall be an order of stay on the proceedings pending before the learned Principal Sessions Judge, Special Court for PMLA Cases, at Srinagar,” it ordered.

Case: Tariq Ahmad Ganaie v Directorate of Enforcement (Diary No 37681/2026)

Coram: Justice MM Sundresh and Justice Prasanna B Varale

Appearance:

For Petitioner: Mr. Syed Faisal Qadri, Sr. Adv. Mr. Mahfooz Ahsan Nazki, AOR Mr. Salhi Peerzada, Adv. Mr. Mir Adnaan Zahoor, Adv. Mr. Vivek Rajan, Adv. Ms. Nazarat Fatima, Adv.