‘ED officials expanded their powers day by day’: Madras HC says the agency had no power to seal the premises of filmmaker Akash Bhaskaran. Bharat News

A division bench that includes Justices Ms. Ramesh and V Lakshminarayanan expressed concern over the developed interpretation of the ED of their powers, given, “The courts often comment that the PMLA (prevention of the Money Laundering Act) is a developed law.

During the hearing on Tuesday, Additional Solicitor General SV Raju, appeared for the ED, admitted that the agency did not have the legal power to seal a closed base under Section 17 of the PMLA. Raju said, “The ED does not have the power to seal. Lordship is correct in that aspect.”

He said that when the law allows ED officials to break the open locks during a discovery, they did not choose in this matter to avoid increasing the situation.

Instead, the agency pasted notices outside the premises, stating that they would “be opened” and directing the agency to contact the agency – an action said that the court incorrectly stated that Ed had the right to ban entry. The bench said, “Ed, by saying that he will be allowed to enter, assumes that Ed has the power to restrict.”

The court had earlier asked the ED to produce the material which justified the raid. When the agency presented its evidence in a seal cover, the bench reported that the documents did not align with the submissions made by the ED. Justice Ramesh saw, “There is a divorce between the note and submissions.”

Ed later agreed to withdraw the notice and return the seized material, including the phone, laptop and a hard drive taken from Bhaskaran’s Alwarpet residence. Orders on interim applications have been reserved, while the main petitions have been postponed for four weeks.

Bhaskaran, a relatively new name in the Tamil film industry, is a producer behind Don Pictures and is currently halling three of the most anticipated films of Tamil cinema – Idli Kadai, which features a bow, Shivkarthikayan, starring Dhanush, Parashakti, and Straw 49 of Silambarson TR.

He came to the radar of Ed not only for high-value presentations, but also for the alleged proximity of DMK and Udayanidhi Stalin.

There is a mercury of special interest. Produced by Sudha Kongra and produced with a budget of Rs 200 crore, the film is said to be a powerful political period focused on the anti-Hindi movement in Tamil Nadu, which includes Shivakarthikayan and Pivolell roles with Ravi Mohan. The film was expected to release before the 2026 assembly poll. Amidst the national discussions on federalism, linguistic identity and central overrech, its time only speculate that Bhaskaran’s cinematic ventures can also be seen as political expressions.

A few months before the operation of the ED, the power is expected to enter its final production phase.

In his petitions, Bhaskaran and Ravindran claimed that neither was named as accused in any ongoing money laundering case. Bhaskaran’s senior advocate argued that the manufacturer had no connection with the Tasmac scam and that the seizure of his personal digital equipment was illegal. Ravindran, a director of Don Pictures, filed two petitions, challenged the ED sealing of his office in Semenchari and a rented apartments in the Pose Garden, arguing that the agency lacks legal support for such action.

The court, providing ED time to clarify its position, questioned whether notices are for sealing, stopping admission in the campus. Justice Laxminarayanan said, “No person will ignore such notice.

The ED’s lawyer stressed that the search was based on “reliable information” and reiterated that Bhaskaran and Rabindran were not accused, but had failed to cooperate despite repeated efforts by the agency to contact them.