Raj Kundra moves Bombay High Court to quash PMLA cognizance

• Raj Kundra has moved the Bombay High Court to quash a cognizance order and summons issued by the ED in connection with its Bitcoin-linked money laundering case.
• The ED alleges that Kundra received 285 Bitcoins valued at around ₹150.47 crore from Bhardwaj between July and August 2017, and refused to disclose wallet details or surrender the Bitcoins.
• Kundra's challenge to the cognizance order and summons is significant, as it highlights the ED's willingness to pursue PMLA charges against individuals and entities with alleged links to Bitcoin.

The case highlights the ED's willingness to pursue PMLA charges against individuals and entities with alleged links to Bitcoin.

A high-stakes battle is underway in the Bombay High Court as businessman Raj Kundra, husband of actress Shilpa Shetty, seeks to quash a cognizance order and summons issued by the Enforcement Directorate (ED) in connection with its Bitcoin-linked money laundering case. The ED's investigation has been ongoing since 2019, when it filed a prosecution complaint against several individuals and entities, including directors of Variable Tech Pte Ltd and Gainbitcoin.com promoter Amit Bhardwaj. One of these individuals is now at the center of the controversy: Raj Kundra, who was added as an accused in a supplementary complaint filed by the ED in September 2025.

According to the ED's allegations, Kundra received 285 Bitcoins valued at around ₹150.47 crore from Bhardwaj between July and August 2017. The ED claims that Kundra refused to disclose wallet details or surrender the Bitcoins, and also engaged in a low-value sale transaction with Shetty to allegedly disguise the origin of funds. These allegations have been taken cognizance of by the special PMLA court, which initiated proceedings against Kundra on January 5. The consequent summons issued on January 7 has now been challenged by Kundra before the High Court; however, Kundra appeared before the special PMLA court in response to the summons and was granted bail on February 20, 2026.

The case highlights the ED's willingness to pursue PMLA charges against individuals and entities with alleged links to Bitcoin. This development is significant, not just for Kundra, but also for lawyers who advise clients involved in cryptocurrency transactions. As the ED continues to crack down on money laundering activities linked to digital currencies, it remains to be seen how this case will unfold and what implications it may have for those involved in the industry.

Lawyers should watch for the potential implications of this development on clients involved in cryptocurrency transactions, as it highlights the ED's willingness to pursue PMLA charges against individuals and entities with alleged links to Bitcoin.

Source: Original reporting via Business Standard