Madras High Court Stays Probe Agency ED Action Against Producer Vikram Ravindran, Associate

In a major setback for the Enforcement Directorate (ED) in the high-profile TASMAC money laundering probe, the Madras High Court has stayed proceedings against Tamil film producer Vikram Ravindran and his associate, ruling that the ED's search and seizure operation was without authority and jurisdiction.

The court also directed the ED to return all properties seized during the raid including electronic devices, with a caveat that the petitioners must not tamper with or alienate the contents of the returned items.

Delivering a scathing verdict, the court noted that the ED failed to produce any incriminating material that would justify initiating proceedings against the petitioners. Despite being given two opportunities to submit evidence justifying the search, the agency could not furnish any document that suggested Mr Ravindran and his friend were involved in money laundering linked to the Rs 1,000 crore TASMAC scam.

"The material presented in a sealed cover does not contain any semblance of information, which may have led them to believe that the petitioner may be involved in the offence of money laundering," the court said.

It said no incriminating documents were in the ED's possession when the search was first authorised.

The petitioners said they had no role in TASMAC operations and were not named in any of the 41 first information reports filed by the state's directorate of vigilance and anti-corruption.

The ED earlier claimed to possess incriminating documents and alleged the duo's involvement.

Alleging a Rs 1,000 crore scam in TASMAC, the government arm that sells liquor, the ED accused distilleries and bottle manufacturing firms of colluding in corrupt practices amounting to over Rs 1,000 crore.

In a significant development during the hearing, the ED said it had no authority to seal the petitioners' properties and agreed to de-seal the premises.

This comes at a time when the Supreme Court has already stayed the ED probe into the TASMAC case, expressing concern over the agency's aggressive approach. The Supreme Court questioned the very basis of criminal action against a state-run corporation, particularly when FIRs were registered against individuals and not the corporation itself. It had also warned that the ED was "crossing all limits" and "breaching the federal structure".

The ruling DMK has repeatedly alleged that central agencies like the ED are being misused by the BJP-led Union government to target Opposition-ruled states and political rivals.

The BJP has denied all such charges. Opposition parties have highlighted the ED's alleged coercive role in extracting large political donations under the now-scrapped electoral bonds scheme.