ED arrest illegal, says HC; orders release of accused in ₹7,569-cr remittance case

A single-judge bench of Justice Milind Jadhav observed that Pandey had responded to the agency’s queries and made the disclosures sought from him

MUMBAI: The Bombay High Court has ordered the release of Jitendra Pandey, a prime accused in an alleged ₹7,569-crore illegal foreign remittance case, declaring his arrest by the Enforcement Directorate (ED) illegal. The court held that his arrest was unnecessary as he had appeared before the agency 38 times over 18 months and cooperated with investigators.

ED arrest illegal, says HC; orders release of accused in ₹7,569-cr remittance case

A single-judge bench of Justice Milind Jadhav observed that Pandey had responded to the agency’s queries and made the disclosures sought from him.

“From perusing the answers given and disclosures effected it is evident that Petitioner (Pandey) cooperated with Respondent No. 1 – ED from time to time,” the judge said while granting him bail.

The court also rejected the ED’s request for a two-week stay on the order to allow it to approach the Supreme Court.

The money laundering probe began after the Naupada police in Thane registered an FIR on October 6, 2023, against Pandey and others for allegedly forming 97 partnership firms and 18 private limited companies using documents obtained from unsuspecting people on the pretext of offering them loans or jobs.

The accused allegedly opened 269 mule bank accounts in the names of these entities and forged invoices, bills of lading, customs forms and certificates to remit ₹7,569 crore abroad through fake import transactions.

Pandey was initially arrested by the Thane police and granted bail by a local court on June 7, 2024. The ED had registered an Enforcement Case Information Report (ECIR) on December 26, 2023. However, it began taking action against Pandey on January 2, 2025, when searches were conducted at his residences in Mumbai and his native place in Uttar Pradesh.

The agency conducted another round of searches on February 26 and 27, 2026, before arresting him on June 23, 2026.

Challenging his arrest, Pandey told the high court that he had appeared before the ED 38 times and that his statements had been recorded five times. His counsel argued that he had made all the disclosures sought by investigators and that there was no fresh material to justify his arrest.

The defence also argued that the ED could exercise its power to arrest under the Prevention of Money Laundering Act (PMLA) only after recording reasons for believing that the accused was guilty of money laundering. It submitted that custodial interrogation could not be used merely to facilitate further investigation.

The ED opposed his plea, arguing that his custody was necessary to trace the money trail and identify the ultimate beneficiaries of the alleged ₹7,569-crore remittances. The court accepted Pandey’s arguments and ordered his immediate release.