The Supreme Court has dismissed the Enforcement Directorate appeal against Razorpay in a case under the Prevention of Money Laundering Act, as per news reports.
The decision upholds the earlier Karnataka High Court order that had quashed the proceedings against the payment gateway firm.
On March 2, 2026, the apex court stated that it was not inclined to interfere with the impugned order passed by the Karnataka High Court.
The Special Leave Petitions filed by the Enforcement Directorate were dismissed. The court clarified that its order was limited to the respondent company.
In March 2024, the Karnataka High Court had quashed the money laundering proceedings, holding that there was no evidence indicating intent on the part of Razorpay to launder money.
The Enforcement Directorate initiated proceedings under Sections 3, 4 and 70 of the Prevention of Money Laundering Act. The agency alleged that the payment gateway processed transactions for a non banking financial company linked to illegal loan applications.
With the Supreme Court affirming the High Court ruling, the judgment indicates that a payment gateway cannot be proceeded against under PMLA solely on the basis of alleged negligence.
Read More: Fresh Legal Trouble for Anil Ambani: CBI Registers a Case Against RCOM in ₹2,220 Crore Bank Fraud!
The development comes as Razorpay has shortlisted 4 investment banks for advisory roles related to a proposed initial public offering. The company has begun preliminary work connected to the listing process.
The dismissal of the appeal provides legal clarity specific to the company in relation to the earlier proceedings.
The Supreme Court’s dismissal of the Enforcement Directorate appeal confirms the Karnataka High Court’s earlier decision to quash the PMLA proceedings against Razorpay. The order is confined to the respondent company and concludes the appeal at the apex court level.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Mar 3, 2026, 9:07 AM IST
Team Angel One
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
EN