Madras High Court issues notice to ED officer for continuing probe despite HC stay order

The Madras High Court on Wednesday issued notice to Enforcement Directorate (ED) Assistant Director Vikas Kumar in a contempt of court plea filed by film producer Akash Baskaran, alleging that the agency continued a money laundering probe against him despite a stay order by the High Court [Shri Akash Baskaran v The Joint Director and 4 Ors].

A Division Bench of Justices MS Ramesh and V Lakshminarayanan sought the ED's response to the plea and posted the case for further hearing on September 17.

"Issue statutory notice to the 3rd respondent returnable by 17.09.2025. Call the matter on 17.09.2025," the Court said.

Baskaran moved the Court stating that the Assistant Director issued a show cause notice to him even after the High Court had passed an interim order staying the probe against him.

In May 2025, the ED had conducted raids and seized materials from Baskaran and his associate Vikram Ravindran, in connection with an alleged ₹1,000 crore money-laundering scam involving Tamil Nadu State Marketing Corporation (TASMAC).

The ED proceeded to seal their residences and offices.

Baskaran and Ravindran challenged the move before the Madras High Court arguing that such sealing lacked legal authority under the Prevention of Money Laundering Act (PMLA).

On June 20, the High Court stayed all further ED proceedings, ordered the immediate return of the seized materials and unsealing of premises.

It called the agency’s actions 'wholly without jurisdiction', given the lack of incriminating evidence.

In August 2025, the High Court also imposed a total fine of ₹30,000 cost on ED for failing to file timely counter-affidavits in Baskaran's three petitions.

[Read Order]