'ED Search Without Jurisdiction' : Madras High Court Stays Proceedings Against Film Producer, Asks ED To Return Seized Materials

The bench of Justice MS Ramesh and Justice V Lakshminarayan held that the authorisation based on which the ED had conducted searches at the offices and residences of the petitioners was prima facie without jurisdiction since there was no incriminating material against them. The court also observed that the materials produced by the ED had no semblance of any information based on which the ED had decided to take action against the petitioners.

“On prima facie view, the authorisation and the search conducted by the respondents is wholly without jurisdiction since there was no incriminating material. We consciously refrain from referring to the materials produced by the respondent for obvious reasons. But so-called materials produced by the respondents have no semblance of information to proceed against the petitioners,” the bench noted in its order.

Though ASG SV Raju requested the court to stay the order for 3 weeks allowing the ED to appeal against it, the court rejected the request.

ED Special Prosecutor Zoheb Hussain informed the court that some phones seized from the petitioners were yet to be cloned and requested the court to permit the same. The court however rejected this request also and remarked that allowing the same would amount to dilute its order.

In the previous hearing, when a specific question was posed by the court on whether ED had the power to seal a premises if it was closed at the time of search, the ED had admitted that it did not have such powers. ED had also informed the court that it was willing to withdraw the notices issued against the petitioners.

Case Title: Akash Baskaran v. The Joint Director

Citation: 2025 LiveLaw (Mad) 208

Case No: WP Crl 71 of 2025