The Enforcement Directorate (ED) has informed the Madras High Court that it does not possess the statutory power to seal premises if they are found locked at the time of conducting a search under the Prevention of Money Laundering Act (PMLA).
The clarification came from Additional Solicitor General (ASG) S.V. Raju during the hearing of petitions filed by film producer Akash Bhaskaran and businessman Vikram Ravindran, who challenged the ED’s search and sealing of their residence and office premises.
A division bench comprising Justices M.S. Ramesh and V. Lakshminarayanan took up the matter on Wednesday and questioned the legal basis for the ED’s sealing action. Responding to the court’s query, ASG Raju submitted that while the ED does have authority under Section 17 of the PMLA to break open locks during a search, it does not have the power to seal the premises in the event they are locked.
“The agency, in this case, chose not to escalate the situation by breaking open the locks,” Raju stated, adding that the agency was instructed to withdraw the notices it had pasted on the petitioners’ premises and to return all seized materials.
Following these submissions, the High Court reserved its order on the interim relief sought by the petitioners and adjourned the hearing on the main petitions to four weeks later.
