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Madras High Court Summons ED Officer in Contempt Case Over PMLA Probe Despite Stay

Prince V.Aug 21, 2025 at 10:21 AM

Madras High Court summons ED Assistant Director Vikas Kumar in a contempt plea by producer Akash Baskaran for continuing PMLA proceedings despite a stay order. Court expresses displeasure and directs officer to appear on September 17, 2025.

Madras High Court Summons ED Officer in Contempt Case Over PMLA Probe Despite Stay

The Madras High Court has summoned Enforcement Directorate (ED) Assistant Director Vikas Kumar in a contempt petition filed by film producer Akash Baskaran, alleging that the officer continued proceedings under the Prevention of Money Laundering Act (PMLA) despite a stay order issued by the court.

A division bench of Justice M.S. Ramesh and Justice V. Lakshminarayanan, while hearing the matter, directed the officer to appear before the court on September 17, 2025.

The bench expressed serious concern that the Assistant Director had issued a show cause notice even after being present in court when the stay order was pronounced.

The judges orally remarked, There's a limit. He was present in court when the order was made.

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Earlier, the court had already observed: “We do not appreciate the manner in which the respondent had violated the orders of this Court, in spite of the fact that he was fully aware of the operation of the interim order of stay.”

Background of the Case

The contempt plea was filed after Baskaran received a show cause notice from the Adjudicating Authority along with a covering letter dated July 11, 2025. The documents, sent by Vikas Kumar, included a recording of reasons under of the PMLA and relied-upon materials, despite the High Court’s stay on June 20, 2025.

The earlier stay order was granted after Baskaran and businessman Vikram Ravindran challenged ED’s action of sealing their residences and office premises during a search. Since the premises were locked at the time, the ED had sealed them.

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The bench had directed the Directorate to produce documents authorising the search. Upon review, the court found that the authorisation lacked jurisdiction and the materials relied upon had no incriminating value against the petitioners.

The court had also imposed a fine of ₹10,000 each in three petitions for failing to file a counter affidavit despite repeated opportunities. The ED later informed the court, through Additional Solicitor General S.V. Raju, that it intended to challenge the fine and had moved an application seeking waiver.

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During the latest hearing, when the Special Public Prosecutor argued that the show cause notice might have been issued by oversight, the bench responded that the officer must appear in person so that the procedure could be explained, preventing such violations in future.

The matter will now be heard on September 17, 2025, when Vikas Kumar has been directed to be present before the court.

Case Title: Akash Baskaran v. The Joint Director and Others

Contempt Petition No.: 2708 of 2025

contempt petitionED Assistant DirectorPMLA probeAkash Baskaran case

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