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ED Can’t Prevent Handover of Searched Premises Once Supreme Court Preservation Directions Are Complied With: Calcutta High Court

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The Calcutta High Court has permitted the owner of a commercial property to take back vacant possession of its premises after recording that the Directorate of Enforcement (ED) had no objection to the tenant vacating the property, provided the directions issued by the Supreme Court regarding preservation of evidence were complied with. 

The bench of Justice Krishna Rao passed the order while disposing of a writ petition which sought directions restraining the Enforcement Directorate and other authorities from obstructing the vacation of the leased premises and the delivery of peaceful possession by the tenant. 

The petitioner informed the High Court that despite the expiry of the tenancy arrangement, it was unable to recover possession of its property because of the presence of law enforcement authorities following proceedings initiated by the Enforcement Directorate. The writ petition sought protection against any interference by the authorities in handing over the premises to the landlord. 

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The tenant, Indian PAC Consulting Pvt. Ltd., submitted before the Court that it was willing to vacate and hand over peaceful possession but had been unable to do so due to unavoidable circumstances, including police deployment at the premises. The tenant expressed readiness to surrender the property so that the landlord could either lease it to another occupant or use it for its own purposes. 

During the hearing, the Additional Solicitor General appearing for the Enforcement Directorate referred to an email dated July 2, 2026. The communication stated that the ED had conducted proceedings under Section 17 of the Prevention of Money Laundering Act, 2002 (PMLA) at the office premises of Indian PAC Consulting Pvt. Ltd. on January 8, 2026.

The ED informed the Court that the search operation resulted in no seizure of any material, attributing the outcome to external interference. It further clarified that the agency had no objection to the tenant vacating the premises and removing its furniture and fixtures, provided the directions issued by the Supreme Court on January 15, 2026, in Writ Petition (Criminal) No. 16 of 2026 were strictly followed. 

The High Court noted that the Supreme Court had directed the authorities to preserve CCTV cameras and other storage devices containing footage of the premises searched on January 8, 2026.

The Enforcement Directorate informed the Court that these directions had already been complied with and that the CCTV cameras and other electronic storage devices had been preserved in accordance with the Supreme Court’s order. 

After considering the submissions of all parties, the reports filed by the authorities, and the Supreme Court’s earlier order, Justice Krishna Rao held that there was no impediment to the tenant handing over possession of the property.

The Court granted liberty to the tenant to deliver peaceful and vacant possession of the premises to the landlord within one week. It further observed that once possession is restored, the petitioner would be free to utilize the property in accordance with law. Accordingly, the writ petition was disposed of.

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Mariya Paliwala
Mariya Paliwalahttps://www.jurishour.in/
Mariya is the Senior Editor at Juris Hour. She has 7+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started her career as a freelance tax reporter in the leading online legal news companies.

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