The Madras High Court has questioned the Enforcement Directorate’s (ED) authority to seal locked premises during its investigation into the alleged ₹1,000 crore TASMAC liquor licence scam. During the June 17 hearing, the division bench of Justices M.S. Ramesh and V. Lakshminarayanan demanded the ED justify:

• Under which law it sealed producer Vikram Ravindran’s residence and office solely because they were locked, and
• What legal power allows it to seal private premises under the Prevention of Money Laundering Act (PMLA)

In its defence, the ED stated that it sealed the premises only after finding them locked, posting notices instructing the owners to contact the agency. However, the court pressed the ED to demonstrate specific legal authority for such an action and demanded evidence linking the individuals to the TASMAC investigation.

The ED has been ordered to file a detailed response, including its legal grounds, with the next hearing scheduled shortly.

The Madras HC is scrutinizing whether the ED has legal backing under the PMLA to seal locked residential or office premises without explicit authorization. The court is pushing back against what it describes as an expansion of ED’s powers.

sources