In a significant relief to film producer Akash Baskaran and businessman Vikram Ravindran, the Madras High Court on Friday stayed all further proceedings initiated by the Enforcement Directorate (ED) pursuant to its authorisation for search and seizure in connection with the alleged ₹1,000 crore TASMAC money laundering case.
A division bench comprising Justices M.S. Ramesh and V. Lakshminarayanan passed the interim order while hearing writ petitions filed by the duo, challenging the legality of the ED’s actions under Section 17 of the Prevention of Money Laundering Act (PMLA).
Senior advocates Vijay Narayanan and Abudukumar, appearing for the petitioners, contended that neither of them had any involvement in the operations of Tamil Nadu State Marketing Corporation (TASMAC), and none of the 41 FIRs registered by the Directorate of Vigilance and Anti-Corruption (DVAC) for scheduled offences named them or alleged any predicate offence against them.
In an earlier interim order on June 13, the court had directed the ED to produce, in a sealed cover, the materials that formed the basis of its “reason to believe” the petitioners were involved in money laundering or were in possession of proceeds of crime.
The court noted that although the Special Public Prosecutor (SPP) submitted a sealed cover and an undated, unsigned explanation note on June 17, the contents lacked any incriminating material linking the petitioners to the alleged offences. The court observed that the explanation note bore no connection to the “reason to believe” claims made earlier and failed to justify the search and seizure operations.
When questioned, Additional Solicitor General S.V. Raju cited the 41 FIRs against TASMAC officials as the foundation for the ED’s action. However, the court expressed its disapproval, stating that such FIRs, without any link to the petitioners, could not constitute valid grounds for authorising search and seizure under the PMLA.
The bench concluded that the ED’s Authorisation No.96/2025 dated May 15, 2025, and the subsequent sealing of Vikram Ravindran’s premises on May 16, were issued “wholly without authority or jurisdiction” as no incriminating material was available at the time.
Accordingly, the court:
- Stayed all further proceedings pursuant to the said authorisation,
- Directed the ED to return all properties seized during the May 16 operation, and
- Ordered that the petitioners refrain from tampering with or alienating any digital devices returned to them.
The matter is next listed for further hearing on July 16.
