In a significant development, the Madras High Court has raised serious doubts about the Enforcement Directorate’s (ED) authority to seal properties during search operations under the Prevention of Money Laundering Act (PMLA), particularly when the premises are locked and unoccupied.
The Bench of Justice M S Ramesh and Justice V Lakshminarayanan was hearing a batch of petitions filed by Tamil film producer Akash Bhaskaran and businessman Vikram Ravindran, who alleged that the ED had illegally sealed their properties during a raid on May 16. The searches were carried out as part of the agency’s probe into the alleged ₹1,000-crore TASMAC liquor distribution scam.
During the hearing, Additional Solicitor General S V Raju, representing the ED, conceded that the agency lacked the legal authority to seal locked premises under Section 17 of the PMLA. “The ED does not have the power to seal. The court is correct in this aspect,” Raju admitted. He added that officials refrained from breaking open the locks during the raid to prevent unnecessary escalation.
Instead, ED officials pasted notices on the entrances of the closed premises, warning against entry and instructing the occupants to contact the agency. The court, however, criticized this move, observing that such notices could wrongly suggest the ED had powers it did not possess. “By stating that ED would ‘permit’ entry, it creates the impression that it has the authority to prohibit it,” the Bench remarked.
The judges also took issue with discrepancies between the ED’s submissions in court and the documents it provided in a sealed cover. “There appears to be a disconnect between the written note and the oral submissions,” Justice Ramesh noted.
Following this, the ED agreed to withdraw the notices and return the electronic devices seized from Bhaskaran’s residence, including phones, laptops, and hard drives. While orders on the interim relief applications have been reserved, the main petitions are scheduled for hearing after four weeks.
Bhaskaran, a rising producer in the Tamil film industry, is currently working on three major projects — Idli Kadai(starring Dhanush), Parashakti (featuring Sivakarthikeyan), and STR 49 (with Silambarasan TR). These films reportedly have a combined budget of over ₹500 crore.
Of these, Parashakti, directed by Sudha Kongara, has attracted political attention due to its subject — a period drama based on Tamil Nadu’s anti-Hindi agitation. The film, with an estimated budget of ₹200 crore, is expected to release ahead of the 2026 Assembly elections, fueling speculation that Bhaskaran’s productions may have political undertones. His alleged links to the ruling DMK and Udhayanidhi Stalin have further drawn the ED’s scrutiny.
Both Bhaskaran and Ravindran, who is also associated with Dawn Pictures, argued in their petitions that they have not been named as accused in any money laundering case. Their legal team asserted that the seizure of personal digital equipment and the ED’s action of barring access to their properties lacked legal sanction.
The court emphasized that even notices pasted by the agency effectively amount to sealing. “No rational individual would defy such a notice and walk in. That very deterrent effect amounts to a de facto sealing,” Justice Lakshminarayanan observed.
The ED, meanwhile, defended the raid as being based on credible intelligence, claiming that both individuals had failed to respond to multiple attempts to seek their cooperation.
The case has once again highlighted concerns over the ED’s interpretation of its powers under PMLA, with the Bench pointedly remarking, “It’s not just the law that is evolving — the Directorate of Enforcement itself is evolving day by day.”
Read More: White Smuggling via Thailand: High-Purity Silver Ornaments Imported at Zero Duty, Melted into Bars
- Eicher Motors Receives Rs. 168.19 Crore GST Demand Notice - July 11, 2025
- Sameer Wankhede Bribery Probe –Bombay HC Frustrated At CBI’s Unending Procrastination And Repeated Adjournments – Extends Interim Protection In Plea To Quash FIR - July 11, 2025
- 13-Year Delay in Tax Appeal: ITAT Indore Accepts Commercial Pilot’s Plea, Orders Fresh Assessment - July 11, 2025
