The Enforcement Directorate (ED) has informed the Madras High Court that it does not have the authority to seal premises under the Prevention of Money Laundering Act (PMLA) if the property is already locked at the time of search.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. The petitioners challenged the ED’s move to conduct searches and seal their residences and offices.
During the hearing, a division bench of Justices M.S. Ramesh and V. Lakshminarayanan questioned the legal power of the ED to seal properties. Responding to this, ASG Raju stated that while the ED has authority under Section 17 of PMLA to break open a locked premises for search, it does not have the power to seal such premises. He added that the agency refrained from forcing entry to avoid escalating the situation.
Raju further informed the court that instructions had been issued to ED officials to remove the sealing notices pasted on the petitioners’ premises and to return all seized materials.
Following these submissions, the bench reserved its orders on the interim relief sought by the petitioners and scheduled the main petition hearing after four weeks.