The Punjab and Haryana High Court on Monday issued a notice to the Enforcement Directorate (ED) on Punjab government and Greater Mohali Area Development Authority (GMADA)'s petition seeking return of the documents and electronic devices seized by the agency during a recent search operation linked to a money laundering probe.

A bench of Chief Justice Ashwani Kumar Mishra and Justice Rohit Kapoor issued notice to the Union government as well and listed the matter after two weeks.

"Fix it for 28th," the Court ordered.

ED had last month raided the premises of GMADA, which deals with the development of residential and commercial properties in and around Mohali, in connection with a money laundering case linked to the Tirupati Infra Projects Private Limited.

The ED probe against the private entity has put various land deals of GMADA under scanner. Following the searches at the GMADA office, the ED reportedly said that former Delhi ministers Manish Sisodia and Satyendar Jain held regular “unofficial” meetings with GMADA officials to discuss master plans, fresh auctions, land acquisition and compensation.

Aam Aadmi Party (AAP), which is in power in Punjab, has denied the allegations against its senior leaders.

GMADA and the Punjab government have now moved the Court to seek quashing of the authorizations for the search and seizure operation. They have also prayed return of the records, which allegedly include 30 bags of documents, computers, hard disk drives, servers and other devices

The petition also prays for a declaration that the survey and search of the GMADA headquarters were without jurisdiction. The government has further sought a declaration that Sections 16 and 17 PMLA confer no power to seal the premises of a statutory authority of a State or to require any person to remain on any premises beyond office hours.

Senior Advocate Vikram Chaudhri, representing GMADA, today submitted that it was a case of blatant abuse of provisions of the Prevention of Money Laundering Act (PMLA).

He claimed that senior government officials were kept "detained for two nights" during the searches carried out by the ED.

Additional Solicitor General Satya Pal Jain said the officers themselves had told a warrant officer appointed by the High Court that they were not detained by the ED during the searches.

"All things were done as per law," Jain said.

Jain also said that GMADA could not have filed the petition as it has no right to raise challenge in the case.

The Court said it will give ED time to file a response to the petition. The bench added that the Court always keeps the question of locus open.

"Mr. Chaudhri, once you say strong words, we will take cognizance in the matter. At this juncture, we can only call for a reply," it said.