TASMAC probe: HC slams ED, stays case against producer and friend

The Madras High Court on Friday (June 20) stayed proceedings against film producer Akash Baskaran and his friend Vikram Ravindran, who were targeted in search and seizure operations linked to an alleged money-laundering case involving the Tamil Nadu State Marketing Corporation (TASMAC). The bench of Justices MS Ramesh and V Lakshminarayan, described the ED’s actions as “wholly without authority or jurisdiction,” citing a lack of credible evidence to justify the agency’s moves.

The court’s orders came in response to writ petitions filed by Baskaran and Ravindran challenging the ED’s operations at their residences on May 16, 2025. The ED had sealed Ravindran’s premises in Poes Garden and Thalambur and conducted searches at Baskaran’s Teynampet apartment, invoking Section 17 of the Prevention of Money Laundering Act (PMLA).

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‘Actions part of TASMAC probe’

The agency claimed the actions were part of an investigation into money laundering linked to TASMAC, based on 41 FIRs filed by the Directorate of Vigilance and Anti-Corruption (DVAC).

However, the petitioners, represented by senior counsels Vijay Narayanan, V. Giri, and Abudukumar Rajarathinam, argued they had no connection to TASMAC or the alleged offences. They questioned the validity of the ED’s authorisations, dated May 15, 2025, asserting that no predicate offence had been registered against them.

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‘ED lacked jurisdiction’

The court found the ED’s justification lacking. Despite multiple opportunities to produce incriminating evidence in sealed covers, the agency failed to provide material substantiating its claims.

The judges noted, “The so-called information produced by the Directorate before us has absolutely no semblance of any information, which may have led them to believe that the petitioner may be involved in the offence of money laundering.” The court consciously avoided detailing the ED’s submissions but emphasized their irrelevance to the case.

Additional Solicitor General S.V. Raju, representing the ED, conceded during the hearing that the agency had already directed the de-sealing of Ravindran’s premises and would return Baskaran’s seized properties, some of which had already been handed back. The court also directed the ED to return all seized items to Baskaran, with a condition that he not tamper with or alienate any digital devices pending the case’s disposal.

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Reference to SC order

The court’s ruling also referenced an interim order by the Supreme Court dated May 22, 2025, which barred the ED from taking coercive steps against TASMAC and its officials in related cases, further undermining the agency’s actions against the petitioners.

This verdict marks a major setback for the ED, highlighting procedural lapses in its investigation. The case will resume on July 16.