Karnataka High Court upholds ED seizure of Genpact headquarters

The Karnataka High Court has validated the Enforcement Directorate's seizure of Genpact's head office in Bengaluru as part of a ₹7,800 crore investigation. The ruling comes as the company contests the ED's asset freezing action in the case.

In its order, the court permitted Genpact to maintain business continuity by continuing operations from its existing Gurugram office despite the seizure of its Karnataka headquarters. The judgment acknowledged the operational necessities of the multinational IT services company while upholding the ED's authority to freeze the assets in question.

The court also directed authorities to reconsider Genpact's request for a No Objection Certificate (NOC) related to a proposed $100 million investment in the Gujarat International Finance Tec-City (GIFT City). This direction suggests the court wanted a fresh, independent assessment of the investment proposal separate from the ongoing investigation.

The seizure relates to investigations into alleged financial irregularities. The case has drawn attention to the intersection of regulatory enforcement actions and corporate operations in India's IT services sector. Genpact, a major employer in the country, has over 100,000 employees globally with significant operations across Indian cities.