The Karnataka High Court has drawn clear limits on the investigative powers of the Enforcement Directorate (ED), observing that the agency cannot investigate every offence that comes to its notice or independently initiate proceedings beyond the authority granted under the Prevention of Money Laundering Act, 2002 (PMLA). While allowing a batch of petitions filed by Congress MLA K.Y. Nanjegowda and others, Justice M.I. Arun held that the ED's powers under the PMLA are "derivative and not original". The Court also ruled that the agency cannot file a private complaint to initiate proceedings relating to a scheduled offence merely because the competent investigating authorities have not acted on information shared by it. The Court consequently quashed the Enforcement Case Information Report (ECIR) and consequential proceedings against the petitioners.