In a sharp rebuke to the Adjudicating Authority under the Prevention of Money Laundering Act (PMLA), the Madras High Court on Friday issued a statutory notice to its Chairperson and Registrar for proceeding with a case despite a stay order passed earlier. The court’s move came after film producer Akash Bhaskaran filed a contempt petition alleging blatant disregard of judicial directions.
The bench of Justice M.S. Ramesh and Justice V. Lakshminarayanan minced no words as it observed, “We do not appreciate the manner in which the petitioner is summoned for final arguments. Issue statutory notice to R4 and R5.”
Background
The dispute traces back to June 2025, when the High Court stayed all proceedings initiated by the Enforcement Directorate (ED) against Bhaskaran and businessman Vikram Ravindran. The petitioners had challenged the ED’s search of their homes and offices, claiming that officials sealed the premises even though there was no incriminating material found.
Earlier, in August, the court had imposed a ₹10,000 fine on the ED in three connected petitions for failing to submit a counter affidavit despite being given a “last chance.” The bench, after examining the search documents, had remarked that the authorisation appeared “prima facie without jurisdiction”, noting that the materials relied upon by the ED had “no semblance of information” to justify such an intrusive action.
Despite this, Bhaskaran later received a show cause notice dated July 11, 2025, from the Adjudicating Authority, accompanied by documents including a “recording of reasons” under Section 8(1) of the PMLA and a compliance note referring to the same proceedings already stayed by the High Court.
Court’s Observations
During Friday’s hearing, counsel for Bhaskaran informed the bench that the Adjudicating Authority had again issued a summons dated September 20, directing him to appear for final arguments on October 8, 2025.
On being queried, the Enforcement Directorate acknowledged that it had already communicated the High Court’s stay order to the Adjudicating Authority. However, the Authority’s continued action despite that communication drew the court’s ire.
The judges observed that proceeding with adjudication when a stay is in effect could amount to wilful disobedience of court orders a serious breach under the Contempt of Courts Act.
A visibly displeased bench commented that such disregard “undermines the sanctity of judicial orders” and cannot be brushed aside as an administrative lapse. The tone in the courtroom was unmistakably stern, reflecting the judiciary’s growing impatience with agencies and quasi-judicial bodies that flout court directions.
Decision
The bench consequently directed that statutory notices be issued to Chairperson Pradeep Kumar Upadhyay and Registrar/Administrative Officer Nasreen Siiddiqui of the Adjudicating Authority under the PMLA.
The matter will next come up for hearing after the respondents file their explanations.
With this order, the High Court signaled that continued defiance of judicial stays would not be tolerated, especially when such acts risk eroding public faith in due process.
Case Title: Akash Bhaskaran v. The Joint Director & Others
Case Type: Contempt Petition (Cont P No. 2708 of 2025)
Petitioner: Akash Bhaskaran – Film Producer
Respondents:
- The Joint Director, Enforcement Directorate
- Chairperson, Adjudicating Authority (PMLA)
- Registrar/Administrative Officer, Adjudicating Authority